A general works agreement, providing that trade union officials who “regularly” work overtime hours are compensated for all such overtime hours by a lump sum of 9 days of additional leave per calendar year, is invalid. Such an agreement does not determine the criteria for overtime compensation as clearly as required, and furthermore violates the principle of equal treatment under the German Works Constitution Act (Betriebsverfassungsgesetz)
Germany has loosened its very strict requirements on dismissal protection. The new law however only applies to a very small group of employees – top bankers who are Material Risk Takers and have a high remuneration package. For banks, dismissals of top bankers will become easier as they no longer need to fear reinstatement, but instead courts can determine a severance amount
The Federal Labour Court held in a recent judgment that in the event of a valid precontract, the employee does not have a right to choose to comply with the non-compete against payment of the non-compete compensation, if the employer has previously decided against enforcement of the non-compete
An employer who was actually and legally affiliated with another employer concluded a fixed-term employment contract, with an employee who was previously already employed by the affiliated employer on a fixed-term employment contract. Due to this previous employment, another fixed-term contract with the same employer would have violated the German law on fixed-term employment. The employer’s attempt to circumvent this legal situation was found to be unlawful
Under certain circumstances, participating in a yoga course that aims at increasing the employee’s resilience in the working life, justifies the granting of educational leave. Hence, the employer can be obliged to grant the employee paid leave of up to five working days for such yoga course
According to a new ruling by the European Court of Justice on May 14, 2019, the EU Member States must require employers to set up a system through which the time worked each day, by each employee, is to be recorded, in order to ensure that the national labour laws regarding working time are complied with. A lawsuit in Spain against Deutsche Bank was the basis for this decision, but it has European-wide implications and is, therefore, also significant for Germany
The Federal Labour Court has ruled that an employee who is on unpaid, special holiday for an entire calendar year is not entitled to paid minimum statutory holidays for such year, due to the suspension of the employee’s obligation to work. This constitutes a change to previous case law, pursuant to which the employee’s claim to paid minimum statutory holidays only required that an employment relationship existed and, therefore, such claim arose regardless of whether the parties had agreed to suspend the main obligations of the employment relationship
Even in the era of far-reaching international trade agreements and regional economic and political partnerships, the majority of laws and regulations governing the workplace are still determined by the individual countries where employees work.
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The entitlement to paid annual leave generally lapses at the end of the respective calendar year. However, according to the latest ruling of the Federal Labor Court, the employer has to inform the employee about his paid annual leave entitlement and the expiry period in detail. Only when the employer has fulfilled his obligations and the employee has still voluntarily not taken the leave he is entitled to, will the outstanding leave entitlements lapse
A hospital, which has institutional ties with the Catholic Church, terminated the employment of its head physician, because he got married for a second time, which is not in line with Catholic ideals. The Federal Labor Court considered the termination invalid, as it disadvantaged the employee because of his religious affiliation. The Court did not consider the requirement to behave faithfully and genuinely according to Catholic ideals, necessary in regard to the employee’s profession