In one of its latest rulings, the Regional Labor Court of Munich concluded that crowdworkers or microtaskers are not employees under German employment law. However, the Court has allowed an appeal to the Federal Labor Court. READ MORE
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
Coming Soon: New Entitlement To Temporary Reduction In Working Time In Germany – The 10 Most Important Questions
On January 1, 2019, new employee entitlements to a temporary reduction in working time will come into force in Germany. We answer the 10 most important questions employers have. READ MORE
To-Do’s for Employers in Germany: No More Automatic Forfeiture of Vacation Entitlements
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