Littler (JD Supra Germany)

The spread of the novel coronavirus (COVID-19) across the globe remains a significant concern in the workplace. Employers are confronting difficult questions regarding how to handle safety and health rules, travel restrictions, compensation, immigration, and other employment issues.

The German government seeks to promote the prospering of the German economy as finding skilled employees from the German labour market becomes more difficult for many employers, especially in the industries of nursing care (the care provided in hospitals and for elderly people), IT, and in the craft sector.

Remuneration of Business-Related Travel Time in Germany - Precedential Decision by Judiciary or Regulatory Agency - According to a recent decision from the German Federal Labor Court, necessary travel time spent in the employer’s interest generally has to be compensated like working time.

In February 2019, the German Federal Ministry for Economic Cooperation and Development (“Development Ministry”) introduced a draft law (the “Draft Law”) that seeks to mandate human rights due diligence for German companies and their global business partners, including suppliers.

The child is ill, an important delivery is expected “between 8:00 a.m. and 7 p.m.” or the car has to go to the garage. What could be more natural than working from home? A quick email to the employer that you will work from your home office in the morning and be in the office in the afternoon and the problem is solved.

According to a recent decision from the German Federal Labor Court, necessary travel time spent in the employer’s interest generally has to be compensated like working time. This decision impacts business travel, especially for multinational companies.

The German federal government has announced a sweeping new initiative with the stated goal of making “Germany and Europe the worldwide leader in the field of artificial intelligence.”

On November 20, 2018, the German Ministry of Finance sent the draft of the Brexit Tax Accompanying Act (the Act) to other ministries and industry associations for their review and input.

It is rare for the highest German labour court to issue a decision that will require employers to take immediate action with respect to their employment contracts. On September 18, 2018, however, the Federal Labour Court issued such a ruling.

On February 7, 2018, Germany's two ruling parties, the Christian Democratic Union (CDU) and the Social Democratic Party (SPD), agreed on a joint government and a 177-page coalition agreement. The employment-specific provisions of the coalition agreement proved to be "deal breakers" and could only be agreed upon after numerous negotiations lasting late into the night.

Strengthening of Company Pension - Only around 60% of employees in Germany have a company pension plan, which they use to provide for retirement in addition to the statutory pension. This is set to change from January 1, 2018. The Company Pensions Strengthening Act aims to raise the level of pension provision in Germany, and provides two key points: (i) the framework conditions for...

In May 2017, the German Federal Government passed a reform known as the German Maternity Protection Act, aimed at protecting the health and well-being of the woman and her (unborn) child during pregnancy, after birth and during the nursing period.

Under the new German Remuneration Transparency Act, employers face complex review and reporting obligations. The gender pay gap in Germany for comparable work and equivalent job qualifications is still nearly 7%. In order to counteract this discrepancy, the Bundestag passed the "Act to Promote Transparency of Pay Structures," also known as the German Remuneration Transparency Act (Gesetz zur...

Works councils in Germany have extensive "co-determination" rights—i.e., the right to participate in company management. Works councils serve as the representative body for employees in German workplaces. Once there are five or more employees in a workplace, they have the right to initiate works council elections.

When employees travel for work the same questions tend to arise over and over again: Does all travel time count as working time? Does the employer have to pay for this time? Often, the response to these questions is unclear. Under German law, however, there are reasonably well-defined criteria that distinguish travel time from working time.

Employees in Germany with a bonus arrangement can claim variable compensation if they meet their agreed-upon or specified performance targets. The level of variable compensation upon full achievement of these targets is regularly established in the employment contract or through an employer/Works Council agreement.

In Germany, employees frequently refuse to sign separation agreements for fear that the Employment Agency (Agentur für Arbeit) will disqualify them from receiving unemployment benefits. A revision of the Employment Agency's internal directives has created some new leeway.

On August 3, 2016, Germany's Federal Labor Court ruled that while the payment of employee bonuses and their amounts are at the discretion of the employer, they are subject to full judicial review. Under this reinterpretation of existing law, if the court concludes that the refusal to pay a bonus, or payment of an insufficient bonus amount, is not a reasonable exercise of employer discretion, the...

On July 13, 2016, the Frankfurt Higher Labor Court held the dismissal of an employee in response to demands by the New York State Department of Financial Services (NYDFS) was invalid. (Frankfurt Labor Court, 18 Sa 1498/15). This holding demonstrates that obligations imposed by agreements with U.S. supervisory authorities do not supersede German employment dismissal law.

On 16 November 2015, Germany's Federal Minister of Labour introduced draft legislation to reform temporary employment and contracts for work and labour.  The planned modifications intend to focus on the core function of temporary employment (covering peak workloads) and to prevent abuse in the creation of contracts for work and labour.