Czech employers sending their employees on assignment to Germany are required to comply with the minimum wage prescribed there. However, this is a requirement that only a few Czech employers are aware of and, therefore, are failing to meet their statutory duties. The law governing the minimum wage has been in effect in Germany since 1 January 2015.
The general minimum wage is set at EUR 8.50 per hour. This roughly equals an hourly gross wage of CZK 234 per hour and a gross monthly salary of CZK 40,654. This gross amount may cause difficulties for some Czech employers, as the Czech employee’s wage is much lower and the remuneration for work carried out abroad must be evened up.
This is not the only requirement a Czech employer must meet when seconding employees. Other requirements include items such as the length of working hours, holidays per calendar year and prohibition of discrimination. They are stipulated in the legislation of the EU Member State.
What is included in the minimum wage must also be established. It includes only those parts of the wage that are payable in the period in which the wage is due. This means that the minimum wage does not include remuneration such as for overtime or for work under difficult conditions.
In addition, employers have a reporting, registration and archiving duties. Before any services commence, each employer must report in German the beginning of their activities to the customs office in Cologne (building industry, hotel and restaurant services, cleaning and other).
In addition, the employer must record working hours and other information related to the minimum wage in separate forms. A breach of the above obligations is considered a violation and the employer may be subject to a penalty of up to EUR 30,000.
We would be pleased to send you more details should you have any questions.