The experience of SOKA. BAU Shortly after the End of World War II, various problems typical of the construction industry appeared: only short‐term durations of employment, regular declines in labour force demand during winter etc. The social partners therefore agreed on a solution without direct government involvement. In this context, the SOKA‐BAU was established. The Sozialkasse‐ Bau or SOKA‐BAU is an umbrella organisation providing various very specific services for the construction industry since 1949. It unites two different institutions, the holiday and wage equalization fund of the construction industry (Urlaubs‐ und Lohnausgleichskasse der Bauwirtschaft ULAK) and the supplementary care fund of the construction Industry (Zusatzversorgungskasse des Baugewerbes AG ZVK). Both are institutions of social partners in the construction industry, which are the Federation of German Construction Industry, the Trade Union for Construction, Agriculture and Environment and the Central Association of German Construction Industry. Tasks of ULAK are securing leave entitlements and the financing of vocational training. The CVC manages the pension allowance to compensate for structural disadvantages in the pension plan. SOKA‐BAU is responsible for approximately 75,000 domestic and foreign companies with about 720,000 employees and 387,000 retired workers. Before posting or becoming economically active on the German labour market, every foreign company has to contact the SOKA‐BAU and register itself as well as the posted workers. The SOKA‐BAU provides an employer number and sends all the necessary information and brochures in the respective language. The employer has to register every employee posted to German for the entire duration of the construction. Once registered the SOKA‐BAU expects the monthly contributions to both funds as well as communication of eventual changes in any form. The employer is requested to fill out forms for each month of economic activity in German and to pay no later than the midst of the next month. Based on this information the SOKA‐BAU calculated the leave entitlements for every registered worker. If a posted worker takes holidays during the posting, the employer has to pay for the leave and inform the SOKA‐BAU about the exact duration. If the contribution account is balanced, the SOKA‐BAU will reimburse the employer for the holiday contribution and recalculate and inform the employer as well as the worker about the new fund level per worker. Compensations: 7 he...
