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No recourse liability against the managing director of a GmbH for violations of the Minimum Wage Act

Labor law

No recourse liability against the managing director of a GmbH for violations of the Minimum Wage Act

In Germany, on the other hand, generally binding collective agreements have practically disappeared from the scene in recent years, but there is a minimum wage, which is currently 12 euros/hour. In a decision dated 30 March 2023 (8 AZR 120/22), the Federal Labour Court ruled that the Minimum Wage Act is not a protective law within the meaning of Section 823 (2) BGB. As a result, a managing director is not personally liable for underpayments.