Category Archive: Executives

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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No right of the works council to remove a managing director

The works council has no right to have the company´s managing director removed, the Higher Labour Court Hamm (Landesarbeitsgericht Hamm, docket number 7 TaBV 11/16) ruled on 2 August 2016.   The works council had claimed to remove the managing director of the employer pursuant to sec. 104 of the Works Constitution Act (Betriebsverfassungsgesetz, BetrVG). …

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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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