Category Archive: Uncategorized

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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Employer may not issue polemic reference letter as coercive measures may follow

While an employee’s enforceable claim to have a reference letter issued generally only covers the formal and substantial minimum requirements of such a letter, this does not apply if the employee is issued a reference letter which is stated in such a polemical and ironic way that its submission by the employee to a potential …

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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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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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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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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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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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Employer does not need allow strike action on her own premises

On the 7 April the Labour Court (ArbG) Berlin (docket no.: 41 Ca 15029/15) prohibited the trade union ver.di from undertaking strike action on the employer’s premises.   In the relevant case ver.di planned to undertake strike action on the employer’s carpark arguing that in view of the circumstances at the relevant work site as well …

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Holiday and Christmas Bonus – No Crediting against Minimum Wage Entitlement

On 2 October 2015 the Higher Court of Berlin-Brandenburg (Landesarbeitsgericht Berlin-Brandenburg) decided that an employer must not credit the employee´s entitlement to holiday and Christmas bonus against the obligation to meet the legal requirements of the Minimum Wage Act (docket number: 9 Sa 570/15). Since the Minimum Wage Act (Mindestlohngesetz) became effective of 1 January …

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