Employers may grant their employees bonuses in addition to fixed basic salary for a variety of reasons, for example, to reward performance, loyalty to the company or just as a Christmas gratuity. In this context different questions arise. This two-part post addresses the most common questions regarding bonus and commission payments. What are the …
Ins and Outs of Bonus and Commission Payments – Part I Read More »
Time and again the question arises whether an individual is employed as an independent contractor or as an employee. Under German law there is a thin line between an employee, ie someone who performs services under an employment contract, and an independent contractor, ie someone who performs services on an independent basis. The distinction is …
Independent contractor or employee – That is the question. Read More »
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 …
Reform of the German Parental Allowance and Parental Leave Act Read More »
Fixed-Term Contracts under German Law In Thursday’s blog, we talked about notice periods under German law. Today’s contribution will focus on fixed-term employment contracts. Can a fixed-term contract be concluded orally? No, the specific duration of the employment contract needs to be put in writing, with employer and employee signing. Oral agreements will lead to …
Ins and Outs re Notice Periods and Fixed-Term Contracts Read More »
Employment relationships may end for various reasons. Two of the most common reasons are termination by either party or the end of a fixed-term contract. An employment contract may be terminated by either the employer or the employee by observing the applicable notice period. Employment contracts may also be concluded for a fixed-term. If the …
Ins and Outs re. Notice Periods and Fixed-Term Employment Read More »
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 …
On June 11, 2014 the Higher Labour Court of Lower Saxony (Landesarbeitsgericht – LAG) dealt with the disadvantageous recalculation of unused accrued annual vacation when switching from full-time to part-time work. In accordance with a recent decision by the European Court of Justice (ECJ), the court held that when employees change their working hours from …
The temperature in Germany has been above 25 °C (77°F) for the past few weeks and many employees might wonder whether they are entitled to a day off due to the excessive heat (“hitzefrei” as it is called in Germany). According to Sec. 3 of the Labour Protection Act (Arbeitsschutzgesetz, ArbSchG), the employer is obligated …
The heat is on….are employees entitled to “Hitzefrei”? Read More »
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 …
The Ins and Outs of German Vacation Time and Vacation Pay Read More »
As March 31 is a key date for the expiry of holiday entitlement in Germany, we want to provide you with a short update regarding holiday entitlements under German law. Pursuant to the Federal Vacation Act (Bundesurlaubsgesetz, BUrlG) every employee is entitled to a minimum of 24 paid days of vacation based on a 6 …
Use it or lose it? Can employees carry over vacation beyond March 31? Read More »
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 …
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 …
Details of how Mrs Merkel’s new administration wants to be “Shaping Germany’s Future” Read More »
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 …
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