Equal Treatment

Presumption of Discrimination due to Gender in Equal Pay Claims

If a woman’s pay is lower than the comparative pay of her male colleagues, there is a rebuttable presumption of discrimination due to gender. The Problem According to the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz), discrimination on the basis of certain characteristics is unlawful. However, it is often impossible for the person discriminated against to …

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Occupational Pensions: Principle of equal treatment does not apply to pension commitments for managing directors

By judgment of 25 November 2020 (docket number: 7 U 1297/20) the Munich Higher Regional Court [Oberlandesgericht München] has ruled that a managing director of a limited liability company [GmbH] cannot invoke the principle of equal treatment under labour law [arbeitsrechtlicher Gleichbehandlungsgrundsatz] if other managing directors have received a better pension commitment. The principle of …

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Employee Leasing: Deviation from Equal Pay

According to a judgement of the Federal Labour Court employers (agency) who lease employees (agency workers) to a third party (client) can deviate from the principle of equal treatment (“Equal Pay”) by virtue of a reference clause in the contract of employment only if, for the period of the lease, the relevant collective bargaining agreement …

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Overtime compensation – are 9 days vacation enough?

The problem Over time, a complex matter often leads to disputes, sometimes even trials between employers and employees. The question whether employers may arrange overtime, but also how to reimburse it is one such highly controversial issue. On June, 26 2019 (docket number: 5 AZR 452/18) the Federal Labour Court (BAG) had to decide whether …

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Good news for parents? – Interpretation of social plan severance provisions

If, in a social compensation plan, the severance payment calculation is based solely on the gross monthly basic salary of a single reference month, the decisive salary of employees who work part-time in that month during their parental leave, is the gross monthly basic salary which they would have been entitled to under their employment …

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Addressing applicants “who are about to graduate”, asking for “very good German and English language skills” as well as a description of being a “young, dynamic company” is in general non-discriminatory

On 23 November 2017 the Federal Labour Court (Bundesarbeitsgericht, BAG) ruled in two parallel proceedings, each with the same plaintiff, on compensation claims for an alleged infringement of the principle of non-discrimination under the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz, AGG) on the basis of two job advertisements. The first position required a completed degree, …

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Are workers in minor employment entitled to occupational pensions?

In an interesting appeal to the Federal Labour Court (docket number 3 AZR 83/16) the services trade union ver.di had been called upon by a female employee – who had originally been employed by the union Deutsche Postgewerkschaft since 1991 and had been working for the defendant since its merger with ver.di in 2001 – …

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Employees exempted from their duties are allowed to take part in a corporate event

On 22 June 2017 (docket number 8 CA 5233/16) the labour court in Cologne found that an employee is allowed to take part in company outings and events although he is on garden leave. The employee and subsequently plaintiff had been working for the employer, an association that operates retirement homes, for almost three decades. …

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Discriminatory job advertisement – No claim for damages if applicant was not “seriously” applying for the job

If an applicant applies for a job solely to bring a claim then he will have no claim for damages, even if the job advertisement violates the General Act on Equal Treatment (judgement of the Munich labour court dated 24 November 2016, docket number 173 C 8860/16). A company advertised a voluntary job at a …

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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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Notice Periods May Be Tied to Years of Service

In a judgment dated September 18, 2014, the Federal Labour Court (Bundesarbeitsgericht, BAG) ruled that seniority-related notice periods are not discriminatory on grounds of age (docket number: 6 AZR 636/13). This judgment settles a long-term bone of contention with regard to the impact of equal treatment law on dismissal protection provisions. Sec. 622 of the …

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The Ins and Outs of German Vacation Time and Vacation Pay

As we approach summer many employers start to intensify their staff’s vacation planning.  Vacation regulations in Germany are not as straightforward as many employers might think. Today’s blog therefore aims to provide a basic overview on German vacation rules for employers. How much vacation pay and time are employees entitled to? Starting off with the …

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Details of how Mrs Merkel’s new administration wants to be “Shaping Germany’s Future”

Almost three months after the general election, the biggest political parties CDU/CSU and SPD have agreed to form a joint administration under the lead of Chancellor Angela Merkel.  In a 185-page coalition agreement named “Shaping Germany`s Future”  the parties have specified their plans and contemplated actions in respect of the forthcoming legislative period. In this post …

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