Category Archive: Site closure

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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A valid dismissal for operational reasons does not require a prior offer to continue employment abroad

While dismissals for operational reasons in Germany generally require an employer to review whether there are vacant positions that the employee may be assigned, this obligation generally does not extend to vacant positions abroad. This principle has now been reconfirmed by the Federal Labour Court (Bundesarbeitsgericht, BAG, judgment dated 24 September 2015, docket number 2 …

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The European Works Council – no paper tiger after all?

A supplier to the automobile industry, “Tenneco”, wanted to shut down its site in Gijon, a town in Northern Spain. The company group’s headquarters are situated in the U.S..  The European directive 2009/38/EG stipulates that a company is required to instruct and listen to the European Works Council about a planned operational change before implementing …

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