EU proceeding against German Minimum Wage law
European Commission launches infringement case on the application of the German Minimum Wage law to the transport sector
On 19 May the European Commission decided to launch an infringement procedure against Germany, concerning the application of the Minimum Wage Act to the transport sector. Following an exchange of information with the German authorities and a thorough legal assessment of the German measures, the Commission has sent a Letter of Formal Notice to Germany. This constitutes the first step in the infringement procedure.
Whilst fully supporting the introduction of a minimum wage in Germany, the Commission considers that the application of the Minimum Wage Act to all transport operations which touch German territory restricts the freedom to provide services and the free movement of goods in a disproportionate manner.
In the Commission’s view the application of German measures to transit and certain international transport operations can not be justified, as it creates disproportionate administrative barriers which prevent the internal market from functioning properly. The Commission considers that more proportionate measures are available to safeguard the social protection of workers and to ensure fair competition, whilst allowing for free movement of services and goods.
The German authorities have two months from now to respond to the arguments put forward by the Commission, in the letter of formal notice.
The Commission’s letter of formal notice only concerns the specific case of the German law and is without prejudice to further initiatives that the Commission may take to clarify the rules, for example in the context of the labour mobility package scheduled for adoption later this year.
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