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.
(No) Issue in Germany?
The ongoing #metoo discussion certainly has arrived in Germany. However, so far, sexual harassment and misconduct haven’t been a major topic of investigation or revelation in Germany. Other than in the U.S., in Germany no major cases of politicians, corporate executives or celebrities accused, sued, or terminated for inappropriate behavior have become publicly known. Only the case of a well-known award-winning TV and film director gained some traction in Germany. READ MORE
In certain circumstances an employer is entitled to analyse the browsing history of the work computer used by the employee without a need for the employee’s consent. This was made clear in a recent ruling of the Regional Labour Court (Landesarbeitsgericht – LAG) of Berlin-Brandenburg (judgment of January, 14 2016 – 5 Sa 657/15).
Following months of waiting the UK Government has finally published its draft regulations on the new “gender pay gap reporting” requirements in the UK. On publication of the draft regulations, the UK Government has asked one final consultation question: “What, if any, modifications should be made to these draft regulations?” – And so it would appear that the draft regulations are nearing but possibly not quite in final form, pending any pertinent responses received.
In a landmark decision on January 12, 2016, the CEDH (European Court of Human Rights), ruled that employers have the right to read their employees private emails sent during working hours, on condition that this surveillance remains reasonable.
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.
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.
In the recent case of Game Retail Limited v Laws, the UK Employment Appeal Tribunal (or “EAT“) considered the fairness of an employee’s dismissal for offensive tweets. This is the first time this issue has been considered at EAT level. The EAT found that the dismissal was fair, even though the Twitter account was not linked to Mr Laws’ employment, and his posts were made in his own time.
Welcome to the Spring 2013 edition of Orrick World: A Quarterly Report of Global Employment Law Issues for Multinationals. We have designed this newsletter to provide our multinational clients with quarterly updates on important employment law issues across the globe.