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Posted Workers Act (AEntG)
Lawyer: All important information from the expert on the employment of foreigners under the Posted Workers Act (AEntG).
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what the Posted Workers Act (AEntG) is
in which cases the AEntG applies
Everything about the minimum wage according to the Posted Workers Act
Employee secondment in the construction and cleaning industries
1. Purpose of the Posted Workers Act
2. Posted Workers Act Minimum Wage
3. Protection against circumvention of the Posted Workers Act
4. Which sectors are covered by the Posted Workers Act?
5. FAQ
6. Conclusion AEntG
1. Purpose of the Posted Workers Act
The Posted Workers Act (AEntG) regulates minimum standards for working conditions in certain sectors in Germany. The Act implements the European Union's Posting of Workers Directive of 1996 , which was revised in 2018. It governs, among other things, the working conditions that apply to employees who are employed in Germany by an employer based abroad. A key purpose of the AEntG is to ensure fair wages and equitable working conditions – not only for posted workers, but also for all employees working in Germany. The Act thus also serves to protect against wage dumping and to uphold social standards.
For companies, the Posted Workers Act (AEntG) imposes clear requirements for compliance with working time regulations, minimum wages, and other labor law provisions. Particularly in sectors such as the construction industry and related trades, the law establishes mandatory working conditions. Violations of the law can be punished with fines or sanctions.
2. Posted Workers Act Minimum Wage
The Posted Workers Act (AEntG) was originally introduced to protect German construction companies from cheap foreign competition . It stipulates that foreign employers posting workers to Germany must comply with the German minimum wage collective agreement – provided it has been declared generally binding ( § 3 AEntG ). The provisions of the AEntG take precedence over the Minimum Wage Act (MiLoG) if the respective industry-specific minimum wages are higher than the general minimum wage.
The precedence of the Posted Workers Act, however, does not only concern wage levels, but also certain other working conditions . According to Section 5 of the Posted Workers Act , the employer's obligations, in the case of an applicable collective bargaining agreement, also extend to the following working conditions:
Maximum working hours, minimum rest periods and rest break times
Duration of vacation leave, vacation pay or additional vacation pay
Safety, health and hygiene in the workplace
Pregnancy and youth protection
Equal treatment and other non-discrimination provisions
Reimbursement of travel, accommodation and meal expenses
Furthermore, the AEntG also applies to other employer obligations, such as reporting obligations for employers, documentation obligations regarding working hours and the provision of relevant documents.
3. Protection against circumvention of the Posted Workers Act
The Posted Workers Act (AEntG) not only regulates the applicable working conditions but also prevents these from being circumvented by specific clauses in employment contracts . Contractual limitation periods are therefore common in many sectors to ensure that claims arising from the employment relationship can be asserted within a specific timeframe. However, according to Section 9 of the AEntG, blanket contractual limitation periods for minimum wage claims are invalid. Employers must ensure that their limitation periods are clearly formulated and comply with legal requirements. The legally sound formulation of contractual limitation periods is crucial to avoid future legal disputes.
4. Which sectors are covered by the Posted Workers Act?
The Posted Workers Act (AEntG) stipulates that certain collective bargaining agreements are binding for employees posted across borders as well as for employees regularly employed in Germany. According to Section 4 of the AEntG, this applies, among others, to the following sectors:
Construction industry and mining specialist work
Building cleaning and laundry services
Waste management (including street cleaning and winter services)
Security services
meat industry
Further special regulations apply to the posting of workers in the care sector. Care, as defined by the Posted Workers Act (AEntG), encompasses companies and independent departments that primarily provide outpatient, day-care, or inpatient care services, or outpatient nursing care services for people in need of care (§§ 10 ff. AEntG). The corresponding working conditions are defined by the Federal Ministry of Labour and Social Affairs through the so-called Care Work Conditions Ordinance. One of our lawyers will be happy to advise you if you have any further questions regarding working conditions in the care sector .
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5. FAQ
What does the Posted Workers Act (AEntG) regulate?
The Posted Workers Act establishes binding minimum working conditions for foreign workers deployed across borders in Germany. Its aim is to prevent wage dumping and ensure fair competition and minimum social standards – particularly in sectors covered by collective bargaining agreements.
What minimum standards apply under the AEntG (Posted Workers Act)?
In addition to the industry-specific minimum wage, the Posted Workers Act (AEntG) also regulates other working conditions such as maximum working hours, vacation, occupational safety, equal treatment, and the reimbursement of travel and accommodation expenses. These standards take precedence over the general minimum wage law (§§ 3–5 AEntG).
Which industries are covered by the AEntG (Posted Workers Act)?
The Posted Workers Act (AEntG) applies to certain sectors with a high risk of abuse, such as construction, building cleaning, waste management, security services, the meat industry, and care facilities. These sectors are subject to specific regulations or generally binding collective agreements, compliance with which is mandatory.
6. Conclusion
The Posted Workers Act (AEntG) is a key instrument for protecting fair wages and minimum social standards in Germany. It obligates foreign employers, in particular, to comply with applicable minimum wages, working hours , and safety regulations when posting employees to Germany. Especially in sectors such as construction, building cleaning, security services, waste management, and care, the AEntG ensures equal conditions for all employees and prevents wage dumping . For companies, this means clear obligations regarding reporting, documentation, and legally sound contract drafting. Employers operating across borders in Germany should be familiar with and implement the complex regulations of the AEntG to avoid fines and legal risks.
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List of Sources (Paywall)
[1] Beck's Online Commentary on Labor Law, Rolfs/Giesen/Kreikebohm/Udsching, 39th Edition