Legal basis

The legal basis for the compulsory participation of foreign employers in the leave fund scheme are the Posted Workers Directive [Arbeitnehmer-Entsendegesetz (AEntG)], the Ninth Directive on Working Conditions in the Construction Industry [Neunte Bauarbeitsbedingungenverordnung (9. BauArbbV)] and the Social Security Benefits Safeguarding Act [Sozialkassenverfahrensicherungsgesetz (SokaSiG)] . The following applicable collective agreements are of major importance in the German construction industry:

  • Federal Framework Agreement for the Construction Industry – [Bundesrahmentarifvertrag für das Baugewerbe (BRTV)]
  • Collective Agreement on Social Security Benefits in the Construction Industry [Tarifvertrag über das Sozialkassenverfahren im Baugewerbe (VTV)]
  • Collective Agreement Regulating Minimum Wages in the Construction Industry in the Federal Republic of Germany [Tarifvertrag zur Regelung der Mindestlöhne im Baugewerbe im Gebiet der Bundesrepublik Deutschland (TV Mindestlohn)]