Equal pay for equal work: BAG ruling strengthens the rights of female employees

A recent ruling by the Federal Labor Court has strengthened the rights of female employees who receive less pay than their male colleagues for the same or equivalent work. The court ruled that the mere fact that a male colleague has negotiated a higher salary through better negotiations is not a permissible differentiation criterion. Instead, female employees are entitled to equal pay if the employer pays male colleagues a higher salary due to their gender. The ruling shows that discrimination in the workplace on the basis of gender is still a topical issue today and that female employees can enforce their rights.

The case before the Federal Labor Court

The case before the Federal Labor Court concerned an employee who had been working for her employer as a sales representative since March 1, 2017. Her basic salary was initially EUR 3,500.00 gross. From August 1, 2018, her remuneration was based on a company collective agreement that regulated the introduction of a new classification system. The relevant pay group for the employee's job provided for a basic salary of EUR 4,140.00 gross. However, due to a cap regulation, the employer only paid the female employee a basic salary of EUR 3,620.00 gross from August 1, 2018. A male colleague, on the other hand, had negotiated a higher salary and received 4,000.00 euros gross. The female employee sued for back pay and compensation for discrimination.

The judgment of the Federal Labor Court

The Federal Labor Court ruled that the female employee was entitled to equal pay. The mere fact that the male colleague had negotiated a higher salary through better negotiations was not a permissible differentiation criterion. Instead, the employer had to prove that the difference in pay was not justified on the basis of gender, but on other objective grounds. However, as the employer was unable to provide such evidence, the employee was entitled to back pay and compensation for discrimination.

Effects of the judgment

The ruling by the Federal Labor Court strengthens the rights of female employees and shows that discrimination in the workplace on the basis of gender is still a topical issue today. Employers must ensure that they treat male and female employees equally and may not pay different wages for the same or equivalent work. The ruling also has implications for other cases of discrimination in the workplace and strengthens the position of women in the workplace.