Germany

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

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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.

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Proposed German Equal Pay Act May Complicate Remuneration Issues

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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.

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

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People Walking

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).

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International data transfer news… a bit like buses

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You know how you wait for ages for a bus to come (well, we do in Europe) and then three come along at once? Well it’s a little like that in the data privacy arena right now, as far as transfer of international personal data is concerned, anyhow. For years, there has been a reasonably steady and fairly consistent position from the various bodies responsible for this complicated and often confusing area of law, but in the last few weeks we have been hit with a significant change overnight and we are all left wondering where to get off.

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The German Federal Labor Court (Bundesarbeitsgericht – BAG) rejects doubtful discrimination complaints

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Even if a potential Employer does not know that an applicant is unsuitable for the offered job from an objective point of view, compensation claims based on discrimination would not be granted.

The first comprehensive anti-discrimination law, regulated in the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz – “AGG”), was introduced in Germany in 2006. In the early years of this Act, many so called “AGG-Hoppers” have abused this situation by applying for discriminatory job offers to assert a compensation claim against inexperienced employers as a second step.

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Appointment of a Data Protection Officer in Germany: You Wanna Avoid Trouble? Then Make Sure You Appoint the Right Person!

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Data Privacy

Data protection law is on the rise. Courts as well as local authorities become increasingly sensitive to the misuse of any individual’s personal data that applicable statutory provisions in Germany, such as the Federal Data Protection Act (Bundesdatenschutzgesetz, “BDSG”), intend to prevent. READ MORE →

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 →