General Equal Treatment Act Germany (AGG): protection against discrimination at work

Since 2006, the General Equal Treatment Act Germany (AGG) has protected employees from discrimination at work. The law bans unequal treatment based on race, ethnic origin, gender, religion or belief, disability, age or sexual identity. Discrimination can be open or subtle, intentional or unconscious. This article explains who is protected, what counts as discrimination, when exceptions apply, and what employees can do if they experience unequal treatment.

Key takeaways:

• The AGG protects employees, trainees, applicants, and former employees against discrimination from hiring to termination – with only a few exceptions.
• Not every disadvantage is illegal. The law only bans discrimination based on one of the seven listed characteristics in Section 1 AGG.
• Discrimination can be direct, indirect, or take the form of harassment, including sexual harassment.
• Employees can challenge unlawful unequal treatment and claim compensation, but strict deadlines apply.

Who is protected under the AGG?

The AGG applies to almost everyone involved in an employment relationship, including

• employees,
• trainees,
• applicants,
• former employees

The protection applies from the first job ad to the end of the working relationship.

What does the AGG protect against?

The law bans discrimination on the basis of

• race
• ethnic origin
• gender
• religion or belief
• disability
• age
• sexual identity

If an employee is disadvantaged for other reasons, the AGG does not apply. In that case, only the general equal treatment principle or other rules may help.

The ban on discrimination applies to all key employer decisions, including

• hiring criteria and job ads
• working conditions and pay
• promotions and career steps
• termination and contract endings

Special rule on dismissals

If a dismissal is not covered by the Dismissal Protection Act (e.g., in small companies or during the first 6 months), the AGG still applies. If the dismissal is covered by the Dismissal Protection Act, the AGG does not apply directly – discrimination is only reviewed as part of the “social justification” test.

When does a “disadvantage” exist under the AGG?

Whether discrimination exists is checked in two steps:

1. Is there less favourable treatment at all?
2. If yes, is this treatment allowed as an exception?

Step 1: Is there discrimination?

The AGG recognises three main forms:

• Direct discrimination: Example: A woman is paid less than a male colleague for the same work.
• Indirect discrimination: Example: Parental leave is excluded from length-of-service rules. This appears neutral, but in practice affects women more often.
• Harassment: Unwanted conduct linked to one of the AGG grounds that violates dignity or creates a hostile environment – including sexual harassment.

Step 2: Can unequal treatment be justified?

Not every difference in treatment is unlawful. The AGG allows certain exceptions.

Permissible discrimination based on occupational requirements

Unequal treatment is legal if the characteristic is an essential and legitimate requirement for the job (Section 8 AGG).

• Unlawful: Job ad: “young professionals only” → age discrimination
• Lawful: Job requires “very good German and good English” if essential for the role

Permissible discrimination by church employers

Religious organisations may require specific religious affiliation when justified by the duties (Section 9 AGG).

Permissible age-related distinctions

Age criteria may be allowed if objectively justified and proportionate. Examples include

• minimum age requirements,
• seniority-based pay,
• upper age limits for physically demanding roles,
• retirement clauses linked to statutory pension age.

Before assuming discrimination, check whether the employer can rely on a legal exception. If not, you may have a valid claim for compensation.

What are the legal consequences of unlawful discrimination?

If discrimination is unlawful, several employee rights come into play.

Invalid employer measures

Any clause, agreement or HR measure that violates the AGG is legally void. This can affect job ads, bonus rules, promotion criteria, warnings or contract clauses.

Right to stop work in cases of harassment

If the employer fails to act against harassment or sexual harassment, affected employees may refuse to work while keeping full pay – but only if this is necessary for their protection. Because this step is risky (possible warning or dismissal for refusal to work), legal advice is strongly recommended before acting.

Compensation and damages

Unlawful discrimination breaches the employer’s contractual duties – even if the misconduct came from a supervisor. Employees may claim

• financial damages (e.g., lost bonuses, missed promotion), and
• non-material compensation for dignity, honour or psychological harm.
  There is no fixed statutory cap; courts consider severity and repetition.

Deadlines you must meet

Claims under the AGG must be asserted in writing within two months.

• Rejected application or promotion: deadline starts when the rejection is received.
• All other cases: deadline starts when the employee becomes aware of the discrimination.

If a collective agreement applies, different deadlines may apply.

What employees can do in practice

1. Document everything – emails, remarks, job ads, performance reviews.
2. Use the internal complaint right under Section 13 AGG. The employer must investigate.
3. Get support from the works council, a union or an employment lawyer.
4. File a damages claim in writing within two months.
5. If necessary, sue within three months after the written claim, otherwise the claim expires.

Frequently asked questions (FAQ)