Germany: Government finalises legislation to regulate low pay

In July 2008, the German cabinet adopted draft legislation to regulate low pay, concluding a year of debate within the conservative-social democrat coalition government.

The compromise decision, reached on 16 July, will amend the existing Posted Workers Law (Arbeitnehmer-Entsendegesetz), which has become a key instrument for extending collectively agreed minimum wages to all employers and employees in a particular industry.