In May 2011 anti-wage-dumping laws (Lohn- und Sozialdumping-Bekämpfungsgesetz – LSDBG) entered into force. The LSDBG was implemented to prevent employers from agreeing on wages which are below the minimum standards of the applicable Collective Bargaining Agreement (CBA) or applicable statutory minimum salaries. Basically, these laws provide quite considerable administrative penalties for employers who agree and pay wages which are under the remuneration minimum standards of an applicable CBA or statutory provisions on minimum salaries. As of 2015 not only the base salary but also other parts of remuneration which are subject to the regulations of a CBA (e.g. overtime, premiums, continued payment in case of absence, Christmas and Holiday pay) fall within the scope of these controls. The penalties have been increased, they range now from € 1,000.00 – 10,000.00 per employee, in case of repetitive breach from € 2,000.00 – 20,000.00 per employee. In May 2015 the Ministry of Social Affairs issued a comprehensive decree which provides an official guideline of the interpretation of the old and new provisions (including clarification and mitigation of certain provisions, e.g. – a tolerance limit of 10% if certain further conditions are met).
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