Tag Archive: Remuneration

Equal Pay Act – A prospect

The coalition committee set the outline for an Equal Pay Act on 6 October 2016, thereby affirming that the current gender pay gap between men and women is no longer acceptable. Moreover, the Equal Pay Act should support families with a low income. According to official statistics the wages of female employees are currently about …

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Cut-off periods may not limit employees’ claims if the employer neglects to give employees relevant information

The expiry of a limitation period does not necessarily result in the forfeiture of claims if the employer neglects to inform the employee about circumstances which would have led to him making claims within the cut-off period, the State Labour Court of Düsseldorf (Landesarbeitsgericht Düsseldorf, docket number 10 Sa 1033/15) ruled on April 29, 2016. …

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Continued remuneration during outpatient care

On 25 May 2016 the Federal Labour Court (Bundesarbeitsgericht, docket number 5 AZR 298/15) ruled that employees on statutory insurance have a claim against their employer for continued remuneration during preventative outpatient care, if it is carried out with the approval of the social service provider in a facility for medical prevention or rehabilitation within …

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Court can decide amount of bonus where there has been an inequitable exercise of employer’s discretion.

The plaintiff worked in a major bank – the defendant – as Managing Director from January 2010 until the end of September 2012. It was agreed by contract that the plaintiff would participate in the bonus system and/or in a deferral plan. On the basis of this agreement, the plaintiff received an achievement bonus of …

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Statutory minimum wage for on call times

The Federal Labour Court (Bundesarbeitsgericht) decided on 29 June 2016 (5 AZR 716/15) that the statutory minimum wage must be paid for each hour of actual work. On call times during which the employee has to be available to start work if required at a place that is determined by the employer also count as …

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Statutory minimum wage does not constitute a reference point to establish the invalidity of a salary agreement

The Federal Labour Court (BAG) ruled on 18 November 2015 (docket number 5 AZR 814/14) that the comparative standard to render a salary agreement invalid is the common salary in the relevant economic sector and not the minimum wage. In the case at hand, the employee worked as a bus hostess on a school bus …

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Showering in the workplace is a private matter: the employer only has to pay for changing time

Which activities are treated as working time and must be paid by the employer? The Higher Labour Court Düsseldorf (Landesarbeitsgericht/LAG) was called  to decide whether the owner of a car workshop owes his employees remuneration for changing clothes (five minutes before and after shift) and washing time (ten minutes after shift) (settlement dated 3 August …

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Financial compensation entitlement for post-contractual non-compete based on standard saving clause

In German law, a post-contractual non-competition agreement with an employee is only effective if it provides the employee with appropriate financial compensation. The financial compensation must amount to at least 50% of the previous income. If no such compensation is provided, the post-contractual non-competition clause is, by force of law, invalid.   Nevertheless, the Hamm …

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Adequate compensation for permanent night workers

A night worker is someone who works for at least two hours during the night between 11 pm and 6 am. The employer must provide the night worker with a reasonable amount of paid time off for the hours worked on a night shift or a reasonable bonus in addition to his/her wages, provided an …

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No need for back pay – if employment was established with retroactive effect

On 19 August 2015, the Federal Labour Court (Bundesarbeitsgericht) ruled that employees are not entitled to back pay if the employment relationship was established with retroactive effect (docket number 5 AZR 975/13). The plaintiff was the defendant’s employee until 1986 when her employment contract was transferred to the newly established C-GmbH as part of a …

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