Work certificates: Small change, big benefits

Until recently, on termination of employment, an employer was obliged to provide the departing employee with a work certificate (Arbeitsbescheinigung) to be presented to the employment agency. As work certificates are lengthy and can take some time to complete, this can create a major administrative burden for employers – which is often unnecessary as many employees do not apply for unemployment benefits. A welcome change to sec. 312 of the German Social Code III (Sozialgesetzbuch III, SGB III) saves employers’ time and money: Employers are now only required to complete work certificates on the request of an employee or the …

Work certificates: Small change, big benefits Read More »

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 we will outline the key points relating to employment and labour issues that might be relevant to your business and your daily work. However, it remains to be seen if all of these projects will be implemented in the form described in the coalition deal. …

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

Christmas (bonus) is for everyone

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on November 13, 2013 (docket number – 10 AZR 848/12) that employers cannot validly exclude grants of special payments such as Christmas bonuses in their regulations with respect to employees whose employment ended during the calendar year, if such bonus shall not only reward company loyalty but also remunerate performed work. The court argued, that such exclusions are void, because they unreasonably deprive employees of their earned salary. Consequently, affected employees are entitled to pro-rated payments of such bonuses. Employers must therefore ensure that Christmas bonuses are exclusively granted as a reward of …

Christmas (bonus) is for everyone Read More »