Criticism of Excessive Bureaucracy in Labour Law for Worker Employment: Control Council Voices Concerns
The German government is set to decide on a draft for the Tariff Loyalty Act this Wednesday, a piece of legislation proposed by Federal Minister of Labour and Social Affairs Barbara Steffens (SPD). However, the proposed Act has sparked controversy, particularly among the Norm Control Committee and the Independent Committee for Norm Control.
The Tariff Loyalty Act aims to ensure that companies adhere to industry-standard collective agreements for remuneration, Christmas bonuses, holidays, and rest periods for public contracts valued at 50,000 euros or more. Non-compliance with the Act may result in penalties.
The Independent Committee for Norm Control fears that the Act will trigger an excessively high bureaucratic burden for companies and administration. They suggest that the task of enforcing compliance with collective agreement provisions within the German Pension Insurance should be entrusted to the customs administration instead.
The committee also proposes raising the threshold value for public contracts significantly to avoid bureaucratic burden, as stated in their position paper. They argue that companies already bound by tariffs would be affected and burdened by the regulatory proposal.
The Norm Control Committee, an honorary body that advises the government on avoiding bureaucracy, criticizes that the burden of implementation for the federal administration is higher than represented in the draft by the Federal Ministry of Labour.
Despite the concerns raised by the committees, the details of the Tariff Loyalty Act and the position of the Independent Committee for Norm Control regarding this Act are not yet clear. Further information is needed to fully understand the controversy surrounding this legislation and its potential impacts on companies, bureaucracy, and administration in Germany.
- The Tariff Loyalty Act, if passed, will introduce a new policy-and-legislation initiative in the German business industry, aiming to enforce collective agreements for remuneration, bonuses, holidays, and rest periods in public contracts valued at 50,000 euros or more, with non-compliance attracting fines.
- The Independent Committee for Norm Control is apprehensive about the Tariff Loyalty Act, fearing an excessive bureaucratic burden for companies and administration, and proposing that enforcement of compliance with collective agreement provisions within the German Pension Insurance be entrusted to the customs administration instead.
- The Norm Control Committee, an advisory body to the German government, expresses concern about the potential high burden of implementation for the federal administration in the context of the Tariff Loyality Act, as outlined in the draft by the Federal Ministry of Labour, and anticipates subsequent impacts on companies, bureaucracy, and administration in Germany.
