Germany

Regional Labor Court of Cologne: European Works Council Cannot Enforce its Information and Consultation Rights by a Preliminary Injunction

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Blue Globe

According to the German European Works Councils Act, the employees at companies or groups of companies with an aggregated headcount of more than 1,000 employees and at least each 150 employees in two Member States of the European Union have the right to elect a European Works Council (EWC). This representative body is located at the German parent company’s seat. It has various rights of information, either based on an agreement between the EWC and the parent company, or based on the Act if no agreement was found. READ MORE →

German Federal Labor Court Dismisses 46 Million Euro Claim for Unlawful Solicitation of Employees

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Blue Globe

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 →