The Minimum Wage Act (MiLoG) has been applicable in Germany since 01/01/2015. Hamburg Messe und Congress GmbH (HMC) affirms that it pays its employees a working wage at least at the level of the minimum wage stipulated in the Minimum Wage Act, and that it complies with all the requirements of the Minimum Wage Act.
For placement of orders, HMC has been subject to extensive additional obligations since entry into force of the Law on Minimum Wages in the City of Hamburg, and the Amendment to the Hamburg Placement of Orders Act (HmbVgG) of 10/06/2013. As a company in which the City of Hamburg has a shareholding, HMC places orders under public law for construction work and other services, and issues licenses for services pursuant to Section 3 of the Hamburg Placement of Orders Act, only to contractors that give their written undertaking as follows at the time of submitting their offer:
- To give their employees for execution of the work in question at least the working conditions, including payment, set out in the Collective Bargaining Agreement as specified in the Employee Assignment Act (AEntG) of 20/04/2009 (Federal Gazette I p.799) and any other relevant statutory provisions on minimum wages;
- To pay their employees (with the exception of trainees) for the execution of the work in question a wage of at least the level set out in Section 5 of the Hamburg Minimum Wage Act (HmbMinLohnG) in the version applicable at the time in question (Sect. 3 clause 2 HmbVG);
- To oblige in writing any sub-contractors or any employee assignment agency mandated by the contractor or a sub-contractor to give its employees at least the working conditions which the contractor itself promises to provide;
- To ensure in the event of employee assignment within the meaning of the Employee Assignment Act that the assignor gives the assigned employees for execution of the work the same wages as comparable employees of the company taking the assigned workers (Section 3 clause 3 HmbVgG);
- To ensure that the above obligations are transferred in writing to any sub-contractor doing the work for them or to any employee assignment agency used by them or their sub-contractor and to provide proof of this to HMC on request;
- To ensure that any sub-contractors used by it transfer the above obligations in each case in writing to their subcontractors or to employee assignment agencies used by these and to oblige them to provide proof of this to HMC on request.
If the specified declaration is not submitted despite request by HMC, the application for participation in the ordering procedure or the quotation will be excluded from evaluation (Section 3 clause 4 HmbVgG).
Culpable non-fulfilment of the above obligations by a contractor or its sub-contractor shall entitle HMC to terminate the contract immediately without a period of notice.