Posted Workers Act (AEntG)
All important information on the employment of foreigners under the Posted Workers Act (AEntG).
Here you learn ...
what the Posted Workers Act (AEntG) is
in which cases the AEntG is applicable
everything about the minimum wage according to the Posted Workers Act
Posting of workers in the construction and cleaning sectors
Table of Content
1. Purpose of the Posted Workers Act
2. Posted Workers Act Minimum Wage
3. Protection against circumvention of the Posted Workers Act
4. To which sectors does the Posted Workers Act apply?
5. 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 law implements the European Union's 1996 Posted Workers Directive , which was revised in 2018. Among other things, it regulates the working conditions that apply to workers employed in Germany by an employer based abroad. A central purpose of the AEntG is to ensure fair wages and just working conditions—not only for posted workers, but also for all employees working in Germany. The law thus also serves to protect against wage dumping and maintain social standards.
For companies, the AEntG provides clear guidelines for compliance with working time regulations, minimum wages, and other labor law provisions. The law stipulates mandatory working conditions, particularly in sectors such as the construction and related industries . 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 who send employees to Germany must comply with the German minimum wage collective agreement – provided it has been declared generally binding ( Section 3 AEntG ). The provisions of the AEntG take precedence over the Minimum Wage Act (MiLoG) if the respective industry minimum wages exceed the general minimum wage.
However, the priority of the Posted Workers Act applies not only to wages, but also to certain other working conditions . According to Section 5 of the Posted Workers Act, employers' obligations under an applicable collective agreement also extend to the following working conditions:
Maximum working hours, minimum rest periods and rest break periods
Duration of vacation, vacation pay or additional vacation pay
safety, health and hygiene at work
Pregnancy and youth protection
Equal treatment and other non-discrimination provisions
Reimbursement of travel, accommodation and meal expenses
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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 AEntG not only regulates the applicable working conditions, but also prevents them from being circumvented by specific clauses in employment contracts . Employment contract limitation periods are common in many industries to ensure that claims arising from the employment relationship can be asserted within a specific period of time. However, according to Section 9 AEntG, blanket employment contract limitation periods for minimum wage claims are ineffective. Employers must ensure that their limitation periods are clearly formulated and comply with legal requirements. The legally sound formulation of employment contract limitation periods is crucial to avoid subsequent legal disputes.
4. To which sectors does the Posted Workers Act apply?
The Posted Workers Act (AEntG) stipulates that certain collective agreements are binding for workers posted across borders and regularly employed in Germany. According to Section 4 AEntG, this applies, among others, to the following sectors:
Construction and mining specialty work
Building cleaning and laundry services
Waste management (including street cleaning and winter services)
Security services
meat industry
Further special features apply to the posting of workers in the nursing sector. Nursing, as defined by the AEntG, encompasses businesses and independent business departments that primarily provide outpatient, day-care, or inpatient nursing services or outpatient nursing services for those in need of care (Sections 10 et seq. AEntG). The corresponding working conditions are established by the Federal Ministry of Labor and Social Affairs through the Nursing Working Conditions Ordinance. One of our lawyers would be happy to advise you if you have further questions about working conditions in the nursing sector .
Summary of this Page
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. Particularly 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 compliant contract drafting, particularly regarding limitation periods. Employers operating across borders in Germany should be familiar with and implement the complex regulations of the AEntG to avoid fines and legal risks.
