DE | EN | RU (0)69 76 75 77 80Mon. - Fri. from 8am to 8pm, Sat. from 8am to 5pm

40 Euro Fine for Delayed Salary Payment

Jun 9, 17 • Employment LawNo Comments

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.

Continue reading:
No need to specify amount of bonus payments in German employment agreements
Individual legal consulting in all employment law matters

Ellen Pusch

Ellen Pusch specializes in employment law and inheritance law at our Munich office. She drafts and optimizes employment agreements as well as specific types of termination agreements and assists with restructuring projects and M&A transactions (transfers of undertakings).

>> show profile

Leave a Comment

Your email address will not be published. Required fields are marked with *

WINHELLER Blog via Newsletter

Subscribe to our free newsletter and receive regular updates on German business law by e-mail. (Mandatory fields are marked with *)

German Business Law News (4 times a year)
I would like to subscribe to the selected newsletter and for that purpose give my consent to WINHELLER to process my above mentioned data. I have read the "Information for Data Processing in the Newsletter Subscription". I understand that I can revoke my consent at any time with effect for the future by clicking the unsubscribe button within the newsletter. *