German Employment Law

The Many Pitfalls of Fixed-Term Employment in Germany – Or: How Long is “Very Long”?

In Germany, fixed-term employment is strictly regulated: As a rule, fixed-term requires objective grounds that justify the limited term. There are exceptions for new hires: If the same employee has not been employed (on a fixed-term or open-ended) by the company before, as a rule, a fixed-term not exceeding two years is allowed including a maximum of three renewals within that period. READ MORE

Terminating the Managing Director of a German GmbH – How to Do it Legally Sound

The status of a managing director (Geschäftsführer) of a German limited liability company (GmbH) is determined (i) by the appointment as managing director and, thus, the corporate office as a legal representative of the company and (ii) by the underlying service agreement. If a company intends to separate from a managing director, both, the appointment and the service agreement have to be terminated. It’s important to realize that these are two different issues that need to be addressed when parting ways with a managing director. READ MORE

New EU Directive on Transparent and Predictable Working Conditions Will Give Gig Workers More Rights

On June 13, 2019, the Council of the European Union (EU) adopted the European Parliaments proposal for a Transparent and Predictable Working Conditions Directive – a direct follow-up to the proclamation of the European Pillar of Social Rights. The new law introduces new minimum rights, as well as new rules on the information to be provided to workers about their working conditions. READ MORE

Federal Labor Court: No More Automatic Forfeiture of Vacation Entitlements in Germany

Very recently, the European Court of Justice (ECJ) held that an automatic forfeiture of vacation entitlements or vacation compensation entitlements without prior notification of the employee contravenes EU law. The German Federal Labor Court (Bundesarbeitsgericht, BAG) now has joined this case law in its decision of February 19, 2019. This requires employers to take action. READ MORE

To-Do’s for Employers in Germany: No More Automatic Forfeiture of Vacation Entitlements

Introduction

The German Federal Vacation Act (Bundesurlaubsgesetz) provides that vacation has to be approved and taken in the current calendar year. The employee is meant to actually take the vacation and enjoy a rest. READ MORE

Frankfurt’s Brexit Pitch – Banks in Germany Will Soon be Able to Fire Top Bankers More Easily

 

Undoubtedly driven by an interest in drawing UK-based banks to Frankfurt and becoming an EU hub for US banks post-Brexit, the German government recently picked up a proposal to relax dismissal protection for high-earning bankers. So it may very well soon be easier for banks in Frankfurt to part with their top employees. READ MORE

Right of Co-determination of the German Works Council on Stock Options of U.S. Parent?

The German Federal Labor Court (judgment of March 20, 2018 – 1 ABR 15/17) has recently clarified a matter of considerable practical relevance for U.S. companies offering stock options to employees of their Germany-based subsidiaries: Does the German subsidiary’s works council have a right to be involved when it comes to offering stock options? READ MORE

Germany – The Time to Review Your Standard Employment Contracts is Now!

A recent ruling of the Federal Labor Court will invalidate thousands of forfeiture clauses in employment contracts in Germany. Companies need to review and revise their standard employment contracts now and explore options to amend existing contracts to exclude potential liabilities. Otherwise there may be significant exposure for the employer. The time to act is now! READ MORE

#MeToo in Germany – Internal Investigation in Sexual Assault Cases

Due to increased awareness and reporting triggered by the international #metoo discussion, besides taking preventive measures, it is crucial for companies with employees in Germany to know what internal actions to take in the event an employee reports an incident of sexual harassment at the workplace. READ MORE