Monthly Archive: July 2016

EU Council adopted Trade-Secret-Directive

The Trade-Secret-Directive was a long time in the making. On 27 May 2016 the EU Council unanimously adopted the Directive on “Trade Secrets”. The Directive’s aim is to protect organisations within EU member states from misappropriation of “trade secrets” and also seeks to harmonize the diverging national laws of the Member States. What is a …

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Statutory minimum wage for on call times

The Federal Labour Court (Bundesarbeitsgericht) decided on 29 June 2016 (5 AZR 716/15) that the statutory minimum wage must be paid for each hour of actual work. On call times during which the employee has to be available to start work if required at a place that is determined by the employer also count as …

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No right to have a lawyer present when consulting personnel file

On 12 July 2016 (docket number 9 AZR 791/14) the Federal Labour Court (Bundesarbeitsgericht, BAG) decided that an employee generally has no right to have a lawyer present when consulting his personnel file (Personalakte). In the case at hand, the plaintiff received an informal warning (Ermahnung). To prepare possible legal action against it, the plaintiff’s …

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Employees aged 50 years or older may not generally be granted extra holiday for recuperation

A clause in a collective bargaining agreement according to which employees aged 50 years or older are granted extra holiday per year is invalid. This was decided by the Federal Labour Court (Bundesarbeitsgericht, BAG) on 12 April 2016 (docket number 9 AZR 659/14). In the case at hand, the applicable collective bargaining agreements awarded three …

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Legal consequence of concealed agency work (verdeckte Arbeitnehmerüberlassung)

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 12 July 2016 (docket number 9 AZR 352/15): If the employer as agency (Verleiher) has the appropriate commercial agency work permit according to the Regulating Commercial Agency Work Act (Arbeitnehmerüberlassungsgesetz, AÜG) to contract out agency workers (Leiharbeitnehmer) to clients (Entleiher) in the context of its economic activity, …

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Interpretation of invalid works agreements as “individual pension grants with collective nature”

The German Federal Labour Court has ruled that a legally invalid works agreement on pensions can be interpreted as ” individual pension grants with collective nature” (“Gesamtzusage”). This is in accordance with sec. 140 of the German Civil Code (German Federal Labour Court – Bundesarbeitsgericht, 23 February 2016,  ref.no. 3 AZR 960/13). The court had to decide …

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Full-time works council members must notify employer about absences

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 24 February 2016 (docket number 7 ABR 20/14) that employees who are released completely from work due to works council duties (Freistellung) have to notify the employer when they fulfil their duties outside of the company and report back upon return. In the case at hand, two …

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