Tag 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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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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Cut-off periods may not limit employees’ claims if the employer neglects to give employees relevant information

The expiry of a limitation period does not necessarily result in the forfeiture of claims if the employer neglects to inform the employee about circumstances which would have led to him making claims within the cut-off period, the State Labour Court of Düsseldorf (Landesarbeitsgericht Düsseldorf, docket number 10 Sa 1033/15) ruled on April 29, 2016. …

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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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Interpretation of invalid works agreements as “individual pension grants with collective nature”

The German Federal Labour Court has ruled that a legally invalid works agreement on pensions can be interpreted as ” individual pension grants with collective nature” (“Gesamtzusage”). This is in accordance with sec. 140 of the German Civil Code (German Federal Labour Court – Bundesarbeitsgericht, 23 February 2016,  ref.no. 3 AZR 960/13). The court had to decide …

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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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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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Different principles for different payments

On 8 December 2015 the Federal Labour Court (Bundesarbeitsgericht, BAG, docket number: 1 AZR 595/14) ruled that it is permissible to limit severance payment entitlements in a social plan (Sozialplan) to employees who are facing unemployment as a result of the termination. In contrast to this, a bonus payment in exchange for a waiver to …

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Pension Indexations and Intra-Group Transfer Price Agreements

An employer who is in a favorable economic position must adjust ongoing pensions despite the fact that he is tied to a transfer price agreement within the group which is partially the source of his profits. This was decided by the Federal Labour Court (Bundesarbeitsgericht, BAG) on 10 February 2015 (ref.no. 3 AZR 37/14). The …

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