Occupational Pensions: European Court of Justice confirms protection of employees in the event of employer insolvency

By judgment of 19 December 2019 (docket number: C-168/18) the European Court of Justice has ruled that employee’s pension entitlements which are based on so-called captive pension insurance schemes (Pensionskassenzusagen) are (to a certain extent) protected from benefit reductions in the event of employer insolvency. The plaintiff participated in a captive pension insurance scheme (Pensionskasse). …

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Occupational Pensions: Information provided by the employer to the employees must be correct, clear and complete

By judgment of 18 February 2020 (docket number: 3 AZR 206/18) the Federal Labour Court has ruled that if an employer provides information on occupational pensions such information must be correct, clear and complete. However, there is no general obligation to provide information on the social security treatment of pension benefits. The plaintiff participated in …

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Update on local legislation implementing the Directive on the Posting of Workers

On 12 February 2020 the German Federal Cabinet adopted a draft law to implement the revised European Directive on the Posting of Workers in the framework of the provision of services. The revision of the Directive entered into force on 29 July 2018 after lengthy negotiations in Brussels (Directive 2018/957/EU amending Directive 96/71/EC). The revision …

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Crowdworkers are not employees under German Labour Law

Crowdworkers are not considered employees under German labour law under a ruling by the Higher Regional Labour Court of Munich on 4 December 2019 (docket number: 8 Sa 146/19). What are Crowdworkers? Crowdworkers are persons to whom so-called microjobs are offered via an Internet platform which they then carry out independently, if they accept the …

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Occupational pensions: Deviation from employer’s (contractual) obligation to adjust pension benefits requires detailed statement of reasons

By judgment of 21.06.2019 (docket number: 7 Sa 92/18) the State Labour Court Hamburg has ruled that a deviation from the employer’s obligation to adjust pension benefits in accordance with an increase in state pension benefits – as provided for in the employer’s pension plan in the event that the employer considers an adjustment “not …

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Entitlements on company pension are subject to particular protection in the event of a transfer of business according to Section 613 a German Civil Code

By judgment of 22 October 2019 (docket number: 3 AZR 429/18) the Federal Labour Court has extended its settled case law regarding the replacement of pension plans in the event of mergers and acquisitions. A replacement of a pension plan by a pension plan existing at the acquirer a must be in accordance with the …

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Employee Leasing: Deviation from Equal Pay

According to a judgement of the Federal Labour Court employers (agency) who lease employees (agency workers) to a third party (client) can deviate from the principle of equal treatment (“Equal Pay”) by virtue of a reference clause in the contract of employment only if, for the period of the lease, the relevant collective bargaining agreement …

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Time Recording Systems Jumpstarted by the Works Council?

In an earlier ruling this year, the European Court of Justice held that European member states must require employers to introduce systems for recording the working time of their employees. However, since there is no German law stipulating time recording( with the exception of overtime recording duties) yet, typically it is up to the employer …

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A cycling accident with fatal consequnces – Regional Labour Court rules over injury and dismissal

The problem Around 20% of all dismissals of employees are subject to legal action. Therefore it is reasonable that employers want to make sure that dismissals are legally sound. One of the most important points in such lawsuits is whether the letter of notice has reached the employee, since the employer must not only prove …

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(Not) nice seeing you again? Federal Labour Court decides on fixed-term employment

The problem In the year 2018 8,3 % of all German employees worked on the basis of a fixed term employment contract. Various rules apply to this kind of employment and breaching one of them often leads to the employment contract being indefinite. One of the most important rules is the time limit on fixed-term …

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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 …

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New German law shall prevent crisis in labour market

For years, the German labour market prospered, mass unemployment was not at all a problem, in fact it was difficult to find qualified employees. However, the times of sustained growth may soon be over. The ifo business climate index has been decreasing for the last couple of months and the German economy shrank slightly in …

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Federal Labour Court specifies requirements for termination of employment due to insufficient fitness

1. The Problem There are many jobs that require excellent mental or physical fitness. If this fitness is no longer maintained, the question often arises as to whether the employment relationship can still be maintained. This was also the problem in a case decided by the Federal Labour Court (docket number: 7 AZR 292/17) on …

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The hazards when working from home

As more and more employees enjoy home office options, litigation with regard to work accidents suffered when working from home has also become more relevant. While statutory accident insurance coverage is triggered when working from home, this does not extend to non-work-related activities. In a recent judgment, the Munich social court held that an employee …

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