wages and salaries in labour law

The word reward comes from recompense. It refers to the remuneration from employment that is paid by the employer to the employee in return for the work performed. Specifically, it is the gross amount before deduction of taxes and social security, which is generally paid at the end of the month.

For a long time, a distinction was made between wages for manual workers and salaries for salaried employees. However, this differentiation of wages is no longer up-to-date. For example, it is hardly used in collective agreements. In most cases, it is generally referred to as remuneration. In the true sense of the word, wages and salaries do not differ according to the form of employment. Rather, the differentiation lies in the calculation type.

Wages and salaries in labor law – a differentiation from wages and salaries

Nowadays, remuneration is usually paid in the form of a monthly salary. It does not depend on the number of working days per month or the actual work performed. This means that the salary is the same every month. No matter how many days you have worked in a month, whether you have been on sick leave or on vacation.

In contrast, the wage is calculated according to the actual work performed. For example, the wage may vary from month to month due to different numbers of days actually worked. The order situation can also influence the amount of the wage. The wage at the end of the month is thus basically calculated according to the hours worked, so that the employee does not always receive the same amount. Remuneration for holidays and public holidays is calculated on an hourly basis. A so-called piece wage can also be agreed. In this case, the remuneration is based on the number of pieces completed. In this case, leave and public holidays are remunerated on the basis of average performance.

Such a variable remuneration can have several advantages. For example, employees have some leeway in terms of working hours, provided their employment contract allows it. It is their own responsibility whether their pay is approximately the same amount each month or whether they need fluctuations in money and working hours. This can lead to more motivation in everyday working life. At the same time, a constantly varying salary can also be a factor in many uncertainties. Especially when a poor order situation determines the work performance. Moreover, the employee only acquires his or her entitlement to the wage if he or she is present. In case of illness or maternity leave, there is initially no entitlement. The legal right to continued payment of wages is only granted under certain conditions. Employees with a fixed salary can generally count on their usual money. The entitlement to continued wage payment in the event of illness exists for six weeks.

Employers, for their part, can better understand how many hours the employee has worked for what has actually been achieved by paying a monthly wage. The easiest way to check work performance is to pay a piece rate. However, this cannot be agreed in many industries.

The wage is determined by the employment contract. Existing collective agreements and the fixed minimum wage of € 9,35 must be observed. In addition to the wage remuneration, various additional benefits can also be agreed in the employment contract, e.g. holiday and Christmas bonus or company car.

Also interesting: Extraordinary termination

Usually the extraordinary termination is also known as „termination without notice“. This is because, in contrast to ordinary termination, the employment relationship is to be terminated with immediate effect – i.e. without observing a notice period.

However, extraordinary terminations are not necessarily terminations without notice. Also conceivable are extraordinary terminations with notice. The employer combines the notice of termination with a so-called social phase-out period so that the employment relationship ends only after the notice period has expired. This is the case, for example, if the employer wishes to give notice of termination for operational reasons to an employee who cannot be terminated on the basis of collective bargaining or statutory provisions.  Read more

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more about labour law: Labour law in hospitals – Labour law in the pharmaceutical industry – Labour law in the care of the elderly- Labour law in the railway sector – Labour law cases– Labour law and corona

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Also interesting:
Termination because of Corona – What to do?Duration of entitlement to unemployment benefit

The coronavirus has a strong impact on the entire working environment. We are currently receiving numerous inquiries on this topic every day and we notice that there is a lot of uncertainty.

⏩ On this page we have summarised the most important questions on the subject of termination due to corona.

⏩ In addition, we have collected the most frequently asked questions for employees, employers and works councils on labour law and Corona and published the corresponding answers in a separate section.

Overview
Is a dismissal because of Corona even possible?
Termination without notice because of Corona
Termination due to Corona
Termination agreement due to Corona
Corona Virus – Does the employer have to pay?
The most frequently asked questions on the subject of „Labour law and Corona“.
Any other questions? We help! (Free initial assessment)

Translated with www.DeepL.com/Translator (free version)

 

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Professionals in protection against dismissal : Lawyer for dismissal protection in Hamburg – Lawyer for dismissal protection in Neumünster – Lawyer for dismissal protection in Rotherbaum– Lawyer for dismissal protection in St. Georg  – Labour law office in Altona – Labour law office in Bergedorf – Labour law office in Dulsberg – Labour law office in Kiel

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