German Employment Law

Employment Law in Germany – Practical Bilingual English-Chinese Guidelines for Chinese Businesses and Investors

André Zimmermann, Wilhelm Nolting-Hauff and Mike DelikatPosted on June 26, 2018

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.

Works Council Elections 2018 in Germany – Are You Ready?

Mike Delikat, André Zimmermann and Louisa KallhoffPosted on February 21, 2018

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.

ECJ: No Discrimination Claims for Mock Applicants in Europe

André ZimmermannPosted on September 2, 2016

Just in time for the 10^th 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.

Using Temp Agencies in Germany: New Restrictions for Companies

André Zimmermann and Louisa KallhoffPosted on June 7, 2016

On June 1, 2016, the draft law regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been adopted by the Federal Cabinet. The German Bundestag will address the draft law after the summer break. However, material changes to the draft are not expected to be made during the parliamentary process. If the time schedule will be observed, the reform will come into force as planned on January 1, 2017.

The new law will bring material changes for both, employment agencies and their customers, the host businesses.

“Temporary Employees” in Germany Need to be Temporary Under New Draft Law

André Zimmermann and Louisa KallhoffPosted on April 29, 2016

Draft legislation regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been introduced by Germany’s Federal Minister of Labor. Although further amendments to this draft are likely and a final version will not come into force before January 1, 2017, it is important to know what this means for temporary employment agencies and their customers, the host businesses.

Proposed German Equal Pay Act May Complicate Remuneration Issues

André Zimmermann and Louisa KallhoffPosted on April 29, 2016

Statistics reveal a difference of 7 percent between the remuneration paid to men and that paid to women with the same qualifications in Germany. The average hourly wage even shows a difference of 22 percent, making pay discrepancy in Germany one of the highest in the EU. In order to adjust these wage injustices, the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth submitted a first preliminary ministerial draft of the German Equal Pay Act (Entgeltgleichheitsgesetz) on December 9, 2015. The act is expected to be adopted in 2016.

Germany – Premium Paid by Employer for Leaving Trade Union is Unlawful

André Zimmermann and Louisa KallhoffPosted on April 28, 2016

Powerful trade unions often are a thorn in the side of employers. But if a company tries to reduce the trade unions’ influence, it may violate the freedom of association under Article 9 section 3 of the German Constitution (Grundgesetz – GG). This was made clear in a recent ruling of the Labor Court (Arbeitsgericht) Gelsenkirchen (judgment of March 9, 2016 – 3 GA 3/16).

Orrick World: A Quarterly Report of Global Employment Law Issues for Multinationals

Yumiko Ohta, Andrea Piermartini Rosi, Gary Siniscalco, Michael Weil and Nicola WhiteleyPosted on December 1, 2015

Asia Employment Law Update

Proposed Regulations May Complicate Reductions in Force in China

On December 31st, 2014, Ministry of Human Resources and Social Security (“MOHRSS”) issued a notice to solicit public opinions on the draft Regulations on Personnel Cutbacks by Enterprises (“Draft Regulations”). The Draft Regulations set out detailed implementing rules for “mass layoffs” (defined under the Labor Contract Law as being a layoff of more than 10% of the workforce or more than 20 employees) and, if adopted in their current form, will further complicate the process for conducting reductions in force in China.

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

André ZimmermannPosted on November 25, 2015

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.

Germany: Act on Collective Bargaining Unity in Force

André ZimmermannPosted on October 29, 2015

In 2010, Germany’s Federal Labor Court (Bundesarbeitsgericht) abolished the principle of collective bargaining unity, commonly referred to as “Tarifeinheit” (“One business, one collective agreement”). As a consequence, since then it has been possible that two different collective bargaining agreements applied for the same group of employees within the same operation. This ruling is supposed to be the major reasons why there have been more strikes in the last couple of months in Germany than ever before.

Employment Law and Litigation