Monthly Archive: December 2015

Different principles for different payments

On 8 December 2015 the Federal Labour Court (Bundesarbeitsgericht, BAG, docket number: 1 AZR 595/14) ruled that it is permissible to limit severance payment entitlements in a social plan (Sozialplan) to employees who are facing unemployment as a result of the termination. In contrast to this, a bonus payment in exchange for a waiver to …

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Employees behind bars…

The Hamburg Higher Labor Court (Landesarbeitsgericht Hamburg) has confirmed previous case law that a custodial sentence may justify an ordinary termination (judgment of 7 July 2015, docket number: 6 Sa 14/15). The employee in this case was given a custodial sentence of 4 years and it was not foreseeable if and when the sentence would …

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Adequate compensation for permanent night workers

A night worker is someone who works for at least two hours during the night between 11 pm and 6 am. The employer must provide the night worker with a reasonable amount of paid time off for the hours worked on a night shift or a reasonable bonus in addition to his/her wages, provided an …

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Proposed changes to labour leasing laws

Following announcements since the last general elections, a proposal has now been made to amend existing labour leasing laws. A legislative proposal was circulated in November and focuses on the following key aspects: Maximum duration: Temporary work by way of labour leasing shall be limited to a duration of 18 consecutive months with the same …

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No dismissal with the option of altered conditions to offset minimum wage

A dismissal with the option of altered terms and conditions will be invalid if additional payments are taken away to offset the higher hourly base pay required under the Minimum Wage Act (judgment of the Higher Regional Labour Court of Berlin-Brandenburg, Landesarbeitsgericht, LAG, dated 25 September 2015, docket number 8 Sa 677/15). In the case …

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A valid dismissal for operational reasons does not require a prior offer to continue employment abroad

While dismissals for operational reasons in Germany generally require an employer to review whether there are vacant positions that the employee may be assigned, this obligation generally does not extend to vacant positions abroad. This principle has now been reconfirmed by the Federal Labour Court (Bundesarbeitsgericht, BAG, judgment dated 24 September 2015, docket number 2 …

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Internships do not count towards the probationary period for vocational training

A previous internship will not count towards the mandatory probationary period for vocational training in order to effectively shorten the agreed probationary period (judgment of the Federal Labour Court, Bundesarbeitsgericht, BAG, dated 19 November 2015, docket number 6 AZR 844/14). Traditionally, many professions in Germany require a formal vocational training program which commonly takes three …

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