Federal Labor Court

ECJ: No Discrimination Claims for Mock Applicants in Europe

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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.

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“Temporary Employees” in Germany need to be Temporary under New Draft Law

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After a long wait the time has finally come: the draft ministerial bill regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) is out. On November 16, 2015, the draft bill entered “early coordination,” i.e. a period of coordination with the Office of the Federal Chancellor prior to coordination between the various ministerial departments. The cabinet decision is due by the end of the year. The law is expected to come into effect on January 1, 2017.

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Germany: When is a New Hire too old to join a Company Pension Scheme?

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Map and Gavel

In Germany, all employees are mandatorily covered by the statutory pension insurance which provides the main source of income during retirement. In addition, many companies grant company pension benefits to their employees, subject to the terms and conditions of the company pension scheme established for this purpose. The amount of the company pension payable after retirement increases with the length of service. READ MORE →

Germany: A “Permanent Temp Worker” is not the Lessee’s Employee

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Map and Compass

In Germany, many companies have resorted to utilizing temp workers through a third-party agency instead of hiring their own personnel. Temp workers typically are leased from an agency that employs the temps and assigns them to the company (lessee). This staffing model has increasingly received political criticism and judicial attention. READ MORE →

New Developments regarding Temporary Workers in Germany

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Blue Globe

German companies rely heavily on temporary workers. Due to fundamental legislative reforms in the mid-2000s, it is possible to pay temporary workers a salary which is below the salary of comparable permanent staff. Therefore, the use of temporary workers provided by HR service providers is a cost effective way for German companies to flexibly adjust their workforce to the current demand of labor. However, in recent years, several High Court decisions have strengthened the rights of temporary workers. In the last months the Federal Labor Court (Bundesarbeitsgericht “BAG”) has issued several important decisions which aim to further improve the rights of temporary workers and also affect companies using the services provided by temporary workers. German companies who employ temporary workers should be aware of these important new developments. READ MORE →