Category Archive: Compliance

Rail Cartel: Which court is competent for recovery claims against a former manager?

This is the first case in Germany in which a company has claimed for recovery from a former manager because he (allegedly) was responsible for the company infringing competion law. The decision of the Federal Labour Court (Bundesarbeitsgericht) was thus eagerly awaited. By judgment of 29 June 2017 (docket number 8 AZR 189/15), the Federal Labour Court annulled the former judgment …

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New Act on Remuneration Transparency

Following up our blog post from December 19, 2016 where we reported about a legislative proposal to promote equal pay between women and men, the Remuneration Transparency Act has now entered into force. Arguing that women still earn 7 % less than men even if statistics account for women frequently working part-time, less often climbing …

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Background checks aka pre-employment screenings in Germany

Many companies refuse to settle for the information provided by the applicant on job applications and in personal interviews. So-called background checks (also known as “pre-employment screenings”) therefore enjoy great popularity among employers in the US and the UK as a measure to investigate the potential employee’s background. This screening may be conducted by the …

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Social Media in the employment context and the new EU General Data Protection Regulation (GDPR)

Sharing personal and work-related information on social media sites has become a prevalent practice for many employees nowadays. Likewise, social media is also used by employers as a platform to connect with the public (e.g. for employer branding and in recruitment) and to communicate within the workforce. However, both sides should be aware that the …

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Terminations for breaches of compliance regulations

On 26 February 2016 (docket number: 1 Sa 358/15) the Higher Labour Court (Landesarbeitsgericht, LAG) Rhineland-Palatinate decided that an employer may terminate the employment relationship with an employee who breached company compliance rules provided the employee was served with a warning for a similar violation before. In the present case the court found that the …

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Compliance investigations and the two-week exclusionary period for immediate dismissal for cause

The successful management and timing of compliance investigations requires careful consideration of the statutory two-week exclusionary period for immediate dismissal for cause of employees involved in any compliance violations.   In German law, an immediate dismissal for cause is only valid and legally effective if the competent works council was duly heard and the written dismissal …

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Protection of confidential business secrets – Sharing sensitive company data among works councils of group companies

Passing on business secrets by employees to third parties may be a criminal offence and therefore potentially justify an immediate dismissal for cause. In a recent ruling the regional labour court (Landesarbeitsgericht, LAG) Schleswig-Holstein decided that sharing sensitive company data among works councils of group companies may not always justify a dismissal (March 4th, 2015; docket …

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Use of a promotional film after the end of an employment

Can an employer publish a promotional film after an employee, who appears in the film, is no longer employed by the company? The Federal Labour Court (Bundesarbeitsgericht, BAG) decided upon this matter on February 19, 2015 (docket number: 8 AZR 1011/13). The defendant had commissioned the production of a promotional film about its company in …

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Comments on applicant CVs might cost you

In a recent case (docket number: 8 AZR 753-13) the federal labour court (Bundesarbeitsgericht, BAG) once again had to decide on a discrimination case concerning the employment application process. The fully-qualified plaintiff applied for a job as a full-time accountant with the defendant. In her CV she declared her civil status to be “married, one …

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Tricks in time recording do not save a lot of time!

Manipulation of time recording may justify dismissal without notice according to a judgment of the Higher Labour Court of Hessen (Landesarbeitsgericht, LAG).  Following judgments of the Federal Labour Court (Bundesarbeitsgericht, BAG), manipulation of time recording by employees is a serious breach of contract which can justify a dismissal without notice even where the employee in …

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