Compliance
Betriebliche Lohngestaltung
The employer's process of determining and structuring remuneration within an establishment.
Definition
Betriebliche Lohngestaltung refers to the employer's process of establishing, applying, and modifying remuneration principles, payment methods, and overall wage structures within an establishment. Under Section 87 (1) No. 10 of the Betriebsverfassungsgesetz, the Works Council has a strong co-determination right in these matters. This means that the employer cannot unilaterally introduce or change systems for job evaluation, performance-related pay, or general remuneration principles without the Works Council's agreement, providing a significant lever for ensuring fair and non-discriminatory pay practices.