Category Archive: Employment contract

New legislation on Act on Part-Time Work and Fixed-Term Employment postponed

In the course of assembling a parliamentary majority after the 2013 federal elections in Germany, the CDU and SPD parties agreed in their coalition agreement on adopting legislation on increasing flexibility for employees. One of the proposals provides for the employee’s right to return to full-time work after a fixed period of part-time work. As …

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Non-compete clauses – No Compensation for Abstention – Severability Clause

Non-compete provisions valid for the period after an employment relationship has ended are invalid unless the agreement provides for a compensation payment of 50% of the employee’s former salary during the entire duration of the post-contractual non-compete obligation. This decision by the German Federal Employment Court (docket no. 10 AZR 448/15, dated March 22, 2017) …

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Dismissal Protection Act not applicable to managing directors despite employee status

While recent EU law developments on the potential employee status of managing directors (cf. ECJ, June 9, 2015, docket no. C-229/14 – Balkaya) and decisions of the German Federal Labour Court regarding the procedural issue of giving managing directors access to the Labour Courts under certain circumstances have somewhat blurred the dividing lines between managing …

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40 Euro lump sum compensation in the event of late or incomplete wages

On 22 November 2016, the Labour Court Cologne decided that an employer who pays late or incomplete wages is obliged to pay lump sum compensation in the amount of 40 Euros to the affected employee (Judgement of 22.11.2016 – 12 SA 524/16). In 2011 the European Parliament and the Council of the European Union passed …

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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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Remuneration Transparency Act: A look ahead

The coalition committee set the outline for a Remuneration Transparency Act in October 2016, thereby affirming that the current gender pay gap between men and women is no longer acceptable. The Act is planned to come into force in summer 2017. The draft law expressly states that it aims to promote and enforce the equal …

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Extension of fixed-term employment contracts

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 26 October 2016 (docket number: 7 AZR 140/15) that a collective bargaining agreement (Tarifvertrag) which allows the extension of fixed-term employment without cause (sachgrundlose Befristung) for a maximum period of five years is effective.   In this case the plaintiff was employed by the defendant, a company …

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News concerning mass dismissal procedure

On 9 June 2016 the Federal Labour Court (Bundesarbeitsgericht) decided that incorrect information to the Works Council with regard to a planned mass dismissal can be healed by a final statement of the Works Council (docket number: 5 AZR 405/15).   After deciding to close the business down, the Works Council was informed about the …

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Mass Dismissals

German Federal Labour Court, dated September 22, 2016, docket number 2 AZR 276/16 A decision of the German Federal Labour Court (Bundesarbeitsgericht) on 22 September 2016 considered that the employer may stop the consultation procedure with the Works Council about mass dismissals if the Works Council did not show willingness to negotiate measures to avoid …

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Multiple fixed-term employment contracts of university scientists and the academic precariat

Multiple fixed-term employment contracts of university scientists may be lawful, as recently confirmed and specified by the German Federal Labour Court (Bundesarbeitsgericht, BAG) in its decision of 8 June 2016 (docket number 7 AZR 259/14). The Court did not find an abuse of legal right. The practice of multiple or repeat fixed-term employment (Kettenbefristung) may …

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