Participation in leave scheme

Foreign construction companies are obliged to participate in the leave scheme if the following requirements apply: An employer accepts a construction contract to be executed in Germany by his workers and does so on his responsibility (posting).

Construction workers are staff carrying out work by using their physical strength and/or by deploying construction machinery or engineering equipment. Those performing unskilled labour are deemed to be commercial workers.  Unskilled labour includes such work as office cleaning as well as maintenance and tidying up.

Any staff assigned by their employer to supervise construction sites are not deemed to be commercial workers, unless they mainly perform physical work. The same applies to staff who are primarily responsible for planning, administration and office duties.

An employer is obliged to participate in the leave fund scheme if his workers are predominantly carrying out construction work during their working hours. This means that they perform construction work for more than 50% of their total working hours. The Federal Framework Agreement for the Construction Industry (BRTV) provides an overview of some typical construction activities.

Within the meaning of the BRTV, an independent department  is also considered to be a company. The same does also apply to the total number of workers mainly performing construction work outside the company’s premises. This is also the case if the BRTV is otherwise not applicable to the company. A single construction project can also be considered to be an independent department, even if the company does normally not perform any construction work.

Temporary agencies must pay the minimum wages and participate in the leave fund scheme of the German construction industry for every worker on temporary loan to perform construction work in Germany.