Parental Leave

Parental leave and vacation entitlement – a complex matter for employers

The problem Vacation entitlements – a matter that has undergone so many changes lately that the author can no longer even think of a suitable introduction. However this article focuses on a recent decision of the Federal Labour Court (19 March 2019, docket number: 9 AZR 495/17) in which the court explained the connections between holiday and parental leave. The applicant was a former employee who was on parental leave for six years before terminating her employment at the end of her leave. Following her dismissal, she claimed compensation for leave over the last six years, since she had not …

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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 contract if they had not been on parental leave (i.e. if they had not worked part time. This is what the German Federal Labour Court decided in its judgment of 15 May 2918 – docket number 1 AZR 20/17. The Court held that the system …

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Reform of the German Parental Allowance and Parental Leave Act

German law allows employees to go on paid parental leave in addition to mandatory paid maternity leave after childbirth. Until now, the German Parental Allowance and Parental Leave Act (Bundeselterngeld- und Elternzeitgesetz, BEEG) provided for a parental allowance for a maximum duration of 12 months of paid parental leave (14 months if the other parent decides to go on parental leave as well). The allowance is paid by the state and ranges from EUR 300.00 to up to EUR 1,800.00 a month depending on the employee’s prior income. Following reforms, an additional option dubbed “Parental Allowance Plus” will be available …

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