Why an employer may not pay wages late
Article 9 of the Pay Protection Act sets the payday. A collective agreement may choose that day freely; work rules may not set it later than 7 working days after the work period; without a rule, 4 working days apply. Blue-collar workers are paid at least 2 times a month, with at most 16 days in between; white-collar employees at least once a month. With a bank transfer, the day the employee's account is credited counts.
Exceptions
A generally binding decision of the joint committee can depart from payment twice a month. Commission for employees other than sales representatives may be paid every 3 months. An agreement with the employee to pay later is not listed as an exception in the act. When the contract ends, the remaining pay is due at the latest on the next regular payday (Article 11).
What is the risk?
Not paying wages on the day they are due is a level 3 offence under Article 162 of the Social Criminal Code: an administrative fine of € 1,000 to € 10,000, per employee concerned. Statutory interest also runs on gross pay from the due date.
What to do
Set the payday in the work rules, no later than 7 working days after the month, and schedule the transfer so the money is in the employee's account on that day.
Is the payday in your work rules still correct?
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Sources
Every amount and deadline on this page was checked against these official sources, last consulted on .