Collective Agreement Compliance Act: wage standards for federal public contracts from 50,000 euros

In the future, anyone carrying out a federal public contract of 50,000 euros or more must pay employees at least the wages and working conditions set out in the sector’s collective agreement. Until now, companies not covered by collective agreements could submit cheaper bids by paying lower wages and thereby displace businesses bound by collective agreements. The new Collective Agreement Compliance Act is intended to remove this competitive disadvantage. A new review office at Deutsche Rentenversicherung Knappschaft-Bahn-See monitors compliance with the rules.