In Germany, one of the reasons employers give for a pay differential between men and women who perform the same work or work of equal value is often different negotiating skills. The Federal Labor Court has now rejected this justification. Employees of the opposite sex who are perceived to be weaker in negotiations are entitled to an "upward adjustment" and compensation.

Equal pay for equal work and work of equal value: the legal foundations of this principle have been enshrined in European and German laws for decades. Lawmakers attempted to strengthen actual enforcement by enacting the German Pay Transparency Act (EntgTranspG) in 2017. Nevertheless, Equal Pay Day will not take place until March 7 this year—the day until which female employees in Germany work "unpaid" in statistical terms, based on the unadjusted gender pay gap of around 18%.

On February 16, 2023, however, the German Federal Labor Court (Bundesarbeitsgericht – “BAG”) issued another important decision on equal pay, stating, among other things, whether and how unequal pay can be justified by way of exception. The decision (Case No. 8 AZR 450/21) sets further bases for employers in Germany to determine pay, but raises additional questions.

The underlying facts and the procedure to date

According to the press release of the Federal Labor Court, the decision, which is not yet available in full text, is based on the following facts:

The plaintiff was employed by the defendant as a sales representative from...

Read Full Story: https://news.google.com/rss/articles/CBMidGh0dHBzOi8vd3d3LmxpdHRsZXIuY29tL3B1...