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
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
Every Chinese investor not only needs to be aware of cultural differences when considering investing in Germany, but also has to have a basic understanding of legal issues.
German employment law provides for a good level of employee protection, for example in case of termination of employment. Being familiar with some basic principles of German employment law can help Chinese investors avoid pitfalls that may lead to severe sanctions by authorities as well as financial obligations towards employees.
Our Orrick Germany China Desk gives a brief outline of German employment law and what Chinese investors and businesses investing or doing business in Germany need to know in our bilingual English-Chinese guideline.
Germany’s Federal Constitutional Court (Bundesverfassungsgericht – BVerfG) has overturned the controversial case law of the Federal Labour Court (Bundesarbeitsgericht – BAG) on fixed-term contracts. The controversial judgment handed down by the BAG in 2011 with regard to what is known as the “prohibition of subsequent contracts” exceeds the limits of what is permitted under the German constitution in terms of judge-made law.
Back in 2011 the BAG had decided that a previous employment with the same employer did not preclude a fixed-term contract without objective justification as per section 14(2) of the German Act on Part-Time Work and Fixed-Term Employment (Teilzeit- und Befristungsgesetz – TzBfG), provided that such previous employment dates back more than three years. The Federal Constitutional Court has now quashed this case-law. This is expected to have substantial repercussions in practice.
After months of exhausting, on-off negotiations with changing negotiation partners at the table, on February 7, 2018 Angela Merkel’s center-right Christian Democratic Union (CDU/CSU) and the center-left Social Democratic Party (SPD) agreed on a new coalition agreement for a third grand coalition – usually referred to as “GroKo” in Germany. The deal has been formally approved by the 460,000 SPD members in a postal vote; the new government has taken up work a couple of weeks ago. READ MORE
After months of exhausting, on-off negotiations with changing negotiation partners at the table, Angela Merkel’s center-right Christian Democratic Union (CDU/CSU) and the center-left Social Democratic Party (SPD) agreed on a new coalition agreement for a third grand coalition – usually referred to as “GroKo” in Germany. The deal still has now been formally approved by the 460,000 SPD members in a postal vote, the new government has taken up work a couple of days ago. Our previous blog gives a summary of upcoming changes for employers that are addressed in the coalition agreement. READ MORE
In Germany, regular works council elections are held every four years. The next election period is quickly approaching, starting on March 1, 2018.
Companies with business in Germany should prepare for the election process and employee initiatives to elect a works council. Our bilingual guide, based on years of experience, provides practical tips and legal considerations, navigates you through the election process and helps you avoid pitfalls that can be costly.
To access the full guide, please click here. If you have any questions, feel free to reach out to André Zimmermann, Head of our German Employment Law Practice, or Mike Delikat, Chair of our Global Employment Law Practice.
In June 2017, the French government unveiled its plan to renew French social model, such program includes notably reforming employment law, French pension and unemployment insurance systems.
As a first step of this comprehensive reform strategy, five ordinances reforming French labor laws were adopted on 22 September 2017 and issued on 23 September 2017 (the Reform).
Unless specifically provided otherwise, the measures introduced by the Reform will enter into force on the day after the publication of the required implementation decrees (expected as from end of October 2017 onwards), and at the latest on 1 January 2018. By exception, certain measures are applicable since publication of the ordinances (e.g. regarding dismissals, temporary work and teleworking). In addition, transitional arrangements may allow existing employee representation to remain in place for the duration of the current mandate but until no later than 31 December 2019. READ MORE
After Germany’s general election, a “Jamaica” alliance could soon rule Germany, being mathematically possible and, after the Social democrats SPD announced their return to opposition, only viable option not involving the right-wing AfD.
What’s in a Name?
A “Jamaica” alliance is named after the colors of the parties involved: Chancellor Angela Merkel’s conservative Christian Democratic Union/Christian Social Union (CDU/CSU) (black), the Free Democratic Party FDP (yellow) and the Green Party (green). The term likely also refers to the “exotic” nature of such an alliance (at least from a German point of view), even though there have been “Jamaica” governments on state level before. Such coalition certainly will face challenges to find a common ground – and a coalition agreement. READ MORE