Monthly Archive: January 2014

Financial services remuneration: New year, new rules

New international banking standards (Basel III / CRD IV) came into effect in Germany and across Europe on January 1, 2014. Whilst most of the new rules relate to banking supervision, there are some important employment law implications, in particular a new Remuneration Ordinance relating to the remuneration of employees and managers of financial institutions …

Continue reading »

Work certificates: Small change, big benefits

Until recently, on termination of employment, an employer was obliged to provide the departing employee with a work certificate (Arbeitsbescheinigung) to be presented to the employment agency. As work certificates are lengthy and can take some time to complete, this can create a major administrative burden for employers – which is often unnecessary as many …

Continue reading »

Need a permanent employee? Don’t hire a temp.

The Regional Labour Court (Landesarbeitsgericht, LAG) of Schleswig-Holstein ruled on January 8, 2014 (docket number – 3 TaBV 43/13) that a temporary agency worker must not be used to meet a permanent demand for employment. In this case, the employer, a large subsidiary of a global healthcare group, needed a permanent assistant in a team comprising …

Continue reading »

Lunchtime break – beware!

The Higher Social Court (Landessozialgericht, LSG) Baden- Württemberg (December 13, 2013 – L 8 U 1506/13) has ruled that an accident that occurred during a lunch break from work, but outside of the workplace, was not a work-related accident.  The plaintiff in this case was having lunch in a canteen at a neighboring bank as …

Continue reading »

EU lifts restrictions on Romanian and Bulgarian workers: good or bad news for the German labour market?

As of January 1, 2014, Romanians and Bulgarians have been granted the right to take up work in any of the European Union`s 28 countries. This lifting of work restrictions has prompted widespread fears of an “invasion” onto the employment markets of some of the EU member states, including Germany. In Germany, the Christian Social …

Continue reading »

Financial services bonus cap (Sec. 25a KWG): More work to be done?

As of January 1, 2014, the variable compensation of employees and managers of financial institutions in Germany generally cannot exceed 100 % of base salary according to the new Section 25a of the German Banking Act (Kreditwesengesetz/ KWG). The German Federal Financial Supervisory Authority (BaFin) reviewed bonus practices at 14 financial institutions in 2013 (before …

Continue reading »

Fraport and airlines not entitled to compensation for losses caused by strike

The flight safety union responsible for calling a strike at Frankfurt airport resulting in 1,700 flight cancellations has successfully defended an application for damages for losses suffered as a result.  Two airlines and Frankfurt airport’s publicly owned operator, Fraport AG, applied for EUR 9.5 million damages to the Higher Labour Court Hessen (Landesarbeitsgericht, LAG).  The applications …

Continue reading »

Works council membership: Not so secret?

 The established case-law that an employee’s membership of a works council cannot be mentioned in a reference given on termination of employment may be open to challenge.  The Higher Labour Court (Landesarbeitsgericht, LAG) Cologne ruled on December 6, 2012 (docket number – 7 Sa 583/12) that under certain circumstances, there is an exception to the established …

Continue reading »