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
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
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
ECJ: No Discrimination Claims for Mock Applicants in Europe
Just in time for the 10th anniversary of the German General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz – AGG) the European Court of Justice (ECJ) has clarified that European anti-discrimination law does not protect mock applicants, i.e. applicants who are not interested in being hired, but solely apply in order to bring claims on the grounds of discrimination. The judgment will make it easier for companies in Europe to reject such discrimination claims in the future.
Germany: Have Rejected Job Applicants the Right to Know the Reasons for Not Getting the Job?
Recently, the German Federal Labor Court (Bundesarbeitsgericht “BAG”) rendered a decision which had been awaited with interest by German employers (BAG, April 25, 2013 – 8 AZR 287/08) with regard to information rights of rejected job applicants. READ MORE
German Federal Labor Court Dismisses 46 Million Euro Claim for Unlawful Solicitation of Employees
The solicitation of employees by competitors is a frequent problem for companies in Germany. Many companies actively pursue a so-called “war for talents” and sometimes unlawful means are used for the purpose of soliciting employees. The loss of key employees can cause severe damage to a company. In many cases, not only expert knowledge but also confidential information and client relationships are lost. The German Federal Labor Court (“Bundesarbeitsgericht” – “BAG”) recently decided on the damage claims of a company which had lost numerous key employees due to unlawful solicitation activities of a competitor (BAG September 26, 2012, 10 AZR 370/10). The decision was eagerly awaited as the plaintiff had claimed a compensation payment of 46 million Euro for the damages caused by the massive solicitation of key employees. The BAG’s decision establishes important principles regarding the solicitation of employees and damage claims of companies who were the target of unlawful solicitation activities. READ MORE