Foreign construction companies posting workers to German construction sites to carry out construction work are required to comply with the German minimum working conditions in the same way as German companies. The aim is to ensure fair competition and to secure workers’ fundamental rights. This means that foreign employers also pay their posted workers the minimum wage and leave allowance and grant them leave. In doing so, Germany implements the European Posted Workers Directive, so that the same rules apply on all German construction sites.
Posting companies take part in the Leave Scheme of the German Construction Industry which is based on a pay-as-you-go system.
Workers accumulate leave entitlements during their employment. They may do so during their employment with different employers. Employers have to pay monthly contributions to SOKA-BAU. Contributions are calculated on the basis of the gross wages earned during the month in question. To this effect, employers have to submit a monthly electronic report to SOKA-BAU. These contributions are for the purpose of financing workers’ leave entitlements. When workers take leave their leave allowance is paid by their current employer. The employer states the amount of leave allowance paid in his next monthly report and applies for a reimbursement to be paid by SOKA-BAU. If their posting ended more than three months before, workers can apply for payment in lieu of leave and/or compensation.