Category Archive: Benefits

No cake for company pensioner

The Labour Court Cologne (Arbeitsgericht, ArbG, Köln, November 24, 2016 – 11 Ca 3589/16) has dismissed the claim of several company pensioners against their former employer, a local food producer. The pensioners claimed a Christmas allowance in the amount of € 105 and a marzipan cake. The pensioners alleged that all company pensioners received those benefits …

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Federal Labor Court rulings to watch in 2017 (edition Jan – March)

Already in the first quarter of the New Year Germany’s Federal Labor Court will deliver a number of judgments important for advisors and practitioners alike: Time Credits for works council members? (- docket no 7 AZR 224/15 – expected for 18 January 2017- ) Although members of a works council act in an honorary role …

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Unemployment benefits despite existing employment relationship

Even without being formally unemployed, an employee might be entitled to unemployment benefits (Arbeitslosengeld I) in the event of factual unemployment, the Social Court Dortmund (Sozialgericht, SG) decided in a recent ruling on 10 October 2016 (docket number: S 31 AL 84/16). The plaintiff, a judicial clerk who was employed at a local court (Amtsgericht, …

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Employer versus heirs: liability for holiday entitlements

The Higher Labour Court Cologne (Landesarbeitsgericht, LAG) ruled on 14 September 2016 (docket number 8 Sa 324/16) that holiday entitlements do not extinguish if the employment relationship ends by reason of the worker’s death. The heirs can claim all outstanding leave benefits not depending on whether the claim for allowance in lieu existed at the …

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Court can decide amount of bonus where there has been an inequitable exercise of employer’s discretion.

The plaintiff worked in a major bank – the defendant – as Managing Director from January 2010 until the end of September 2012. It was agreed by contract that the plaintiff would participate in the bonus system and/or in a deferral plan. On the basis of this agreement, the plaintiff received an achievement bonus of …

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No accident insurance cover between home office and kitchen

The Federal Social Court (Bundessozialgericht) decided on 5 July 2016 (Az.: B 2 U 2/15 R) that an accident on the way from the home office to the kitchen in an employee’s apartment to have a glass of water does not qualify as a workplace accident and is thus not covered by the statutory accident …

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A company’s early retirement scheme does not constitute discrimination under the Equal Treatment Act

The Federal Labour Court (BAG) ruled in March (docket no.: 8 AZR 677/14) that a company’s early retirement pension scheme does not violate the German Equal Treatment Act if the employee is free in his decision to accept the offer. In this case the employer offered within early retirement scheme which provided that the employee …

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“Late marriage” clause in pension schemes is an age discrimination

A “late marriage” clause that requires for payment of the survivor’s pension that the employee, entitled to pension benefits, was getting married before reaching the age of 60 is invalid according sec. 7 para. 2 of the General Equal Treatment Act (AGG). This was decided by the Federal Labour Court (Bundesarbeitsgericht, BAG) on 4 August …

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Showering in the workplace is a private matter: the employer only has to pay for changing time

Which activities are treated as working time and must be paid by the employer? The Higher Labour Court Düsseldorf (Landesarbeitsgericht/LAG) was called  to decide whether the owner of a car workshop owes his employees remuneration for changing clothes (five minutes before and after shift) and washing time (ten minutes after shift) (settlement dated 3 August …

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The exclusion of late married spouses from the provision for dependents is discrimination on the grounds of age

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 4 August 2015 (docket number 3 AZR 137/13) that an exclusion from the provision for dependents can be a discrimination on the ground of age, if there are further unjustified conditions. In the present case a widow claimed against the former employer of her deceased husband to …

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