Category Archive: Remuneration

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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No co-determination rights of the works council for stock options issued by a foreign parent company

In a judgment dated 3 August 2017, the Higher Regional Labour Court of Hessen has held that a works council’s co-determination rights do not extend to stock option plans by an employer’s foreign parent company (docket number 5 TaBV 23/17).   Under German law, works councils have a co-determination right regarding remuneration principles. In this …

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Minimum wage increase

The statutory minimum wage increases: to 9.19 euros on 1 January 2019 and to 9.35 euros per hour on 1 January 2020. This has been decided by the minimum wage commission. The increase is higher than expected. The minimum wage is currently 8.84 euros gross per hour. Every two years, the Minimum Wage Commission (which …

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Requirements of offering of job performance, relationship to reintegration relationship

On 6 December 2017 the Federal Labor Court (docket number 5 AZR 815/16) decided an employee has to offer his job performance in accordance with the contract of employment, in order to claim remuneration for default of acceptance. It is not sufficient to offer an activity within a reintegration relationship according to sec. 74 Social …

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Employer obligation to provide individual target agreements to safety authority

Employers may be required to provide safety authorities with information on individual target agreements with their employees. In a judgment dated 28 February 2018, the Dusseldorf administrative court confirmed a corresponding order by the local safety authority (docket number 29 K 4191/16). In the case at hand, the employer offers consulting services. It is bound …

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Does the employer have to pay for clothes change times?

Many professions require the wearing of special clothing, whether for hygiene or safety reasons (for example, in a hospital), or to show a particular corporate identity (for example, supermarket vendors). The worker does not wear the clothing because he wants to, but because the employer demands it. This leads to several problems: First, the question …

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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 …

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Obligation to provide the works council with salary data does not allow for anonymized lists

Under the Works Constitution Act, the works council has a right to access information regarding the gross salary of employees. Such information is provided to the works council in form of a chart including relevant compensation details. In a case decided by the Higher Regional Labour Court of North Rhine Westphalia – Hamm – (judgment …

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Minimum wage also applies to public holidays and night work premiums

Remuneration on public holidays, as well as night work premiums, which are based on the actual hourly earnings must be calculated at least on the basis of the minimum wage. This is the result of a new judgment by the Federal Labour Court dated 20 September 2017 (docket number 10 AZR 171/16). In the case at hand, the …

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Allowances for work on Sundays, bank holidays or at night are protected against attachment

On 23 August 2017 the Federal Labour Court ruled (judgment, 10 AZR 859/16) that allowances for work on Sundays, on bank holidays and at night are protected against attachment so far as the amount of such payments is common practice. Whether the extent and amount of such allowances are “common”, which means they are protected …

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