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40 Euro Fine for Delayed Salary Payment

First legal decisions regarding the 40 Euros delay charge have been taken by the Higher Labor Court Cologne and the Higher Labor Court Baden-Wurttemberg. According to their opinion, the delay charge of 40 Euros is also applicable for employments.

Delay charge applicable for employments

After a change in legislation, the party liable of a continued remuneration is legally obligated to pay an additional 40 Euros in case of a delayed payment. Lawyers are still discussing whether this delay charge is also applicable to employment relationships. While the Labor Court Düsseldorf holds that an application does not come into question, the Labor Court Cologne took a different position and came to the decision that the new law also applies to employments. This goes in line with a recent decsion of the Higher Labour Court Baden-Wurttemberg only one month earlier.

Prevention of delay charges

Both, the Labour Court Cologne as well as the Labour Court Baden-Wurttemberg have allowed revision to the Federal Labour Court (BAG). Until the BAG is taking a decision, all employers, including nonprofit organizations, are advised to ensure that salaries are being paid punctually to prevent the mentioned 40 Euro fine. Companies need to keep in mind that even a minor exceedance of term payment can lead to a claim of the delay charge from employees.

Our specialised lawyers are pleased to give you detailed advise in the field of labour law. Please do not hesitate to contact us.

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Dr. Eric Uftring

Dr. Eric Uftring

As a specialized employment attorney, Dr. Eric Uftring mainly focuses on German employment law. He advises clients on concluding and drafting work/service and termination agreements, implementing transfers of undertakings and all types of restructuring pertaining to employment law.

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