Month: January 2018

Reduction of a Special Payment Possible Despite Unrestricted Granting for Years

On 23 August 2017 the Federal Labour Court decided that despite the unrestricted granting of a special payment for multiple years, the employer may reduce the amount of a special payment in the future provided that the employment agreement contains a reservation in this respect (docket number 10 AZR 97/17). The employee and later plaintiff was employed by the defendant from 1999 and received through the years, in addition to her regular salary, a Christmas …

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Compensation (severance pay) of director’s pension benefits

By judgment of 23.05.2017 (II ZR 6/16) the Federal Supreme Court (Bundesgerichtshof) has ruled that the prohibition against compensating for pension benefits according to Section 3 German Occupational Pension Act (Betriebsrentengesetz) may be derogated from by mutual consent and, as a result, ongoing pension benefits of a director can be paid out (severance pay). In the present case, the admissibility of the compensation for an ongoing pension, which in principle according to Section 3 German …

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Reform of the German Maternity Protection Act – What changes?

The new German Maternity Protection Act “Gesetz zur Innovation des Mutterschutzgesetzes (MuSchG)” has come into effect on 1 January 2018. The aim of the new regulation is to ensure a modern and responsible approach to maternity leave. In addition, the legislature aimed at making the Maternity Protection Act more comprehensible and clearer in its structure, thus facilitating its applicability. Expansion of the protected target group The regulations of the new MuSchG apply to an extended …

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Extraordinary termination due to feigning incapacity for work

On 7 July 2017 the State Labour Court in Cologne (docket number 4 Sa 936/16) decided that a strong suspicion that an incapacity for work is feigned, is sufficient to justify a termination for good cause, in the course of a dismissal on grounds of suspicion, even though a certificate of incapacity exists. In general a certificate of incapacity for work has such strong evidential value that a trial judge is usually entitled to consider …

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