On June 3, 2025, the Federal Labor Court (Bundesarbeitsgericht) ("BAG") ruled that employees are entitled to financial compensation for outstanding statutory minimum vacation days. Even if a court settlement includes an...more
The regional labor court (Landesarbeitsgericht) ("LAG") Baden-Württemberg decided that an applicant can claim compensation for discrimination based on a job ad that said the employer was looking for a "digital native" (17 Sa...more
Incentive programs like an employee stock option plan or a virtual stock option plan ("VSOP") are widely used by young technology companies ("Company") to reward and retain talent ("Beneficiaries"). A key feature in these...more
On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht) ("FLC") ruled that a provision in an employee stock option plan providing for the immediate forfeiture of vested virtual stock options in the event of...more
Das Bundesarbeitsgericht (BAG) hat am 19. März 2025 (10 AZR 67/24) entschieden, dass eine Regelung in einem Mitarbeiterbeteiligungsprogramm unwirksam ist, die einen Verfall von gevesteten virtuellen Optionsrechten bei einer...more
About the Orrick Legal Ninja Series – OLNS In substantially all of the major world markets, we have dedicated technology lawyers who support young German technology companies on their growth trajectory through all stages. As...more
What the ELA Says About Authorisation As a general rule, the ELA only applies in Germany under the territoriality principle. The Employee Leasing Act applies if the assignment is relevant to the domestic market. For example,...more
AI tools, such as ChatGPT, have become a big part of modern life. They are also becoming more and more relevant in the workplace. The use of AI entails great opportunities, but also a few risks. So far, there is not much case...more
This update is part of our EU AI Act Series. Learn more about the EU AI Act here. Employers in the European Union face new compliance obligations under the EU AI Act, a new set of rules that regulates the use of artificial...more
The EU AI Act is a new set of rules that regulates the use of AI in the EU. It is the first of its kind in the world and aims to balance the protection of human rights and the promotion of innovation. The Act applies to...more
With the aim of ensuring equal pay for equal work or work of equal value, the European Pay Transparency Directive (Directive (EU) 2023/970, the "Directive") came into force on June 6, 2023. The Directive provides for even...more
Managing workforce in the relatively strict and extensive jungle of Germany's employment law provisions can be difficult, especially for multinationals and US inhouse counsel who are used to at-will terminations and are not...more
Many international providers offer services of U.S.-style Employers of Record. An EOR is a third-party company that acts as a local legal employer for another company. The EOR carries the legal and compliance obligations of...more
With a delay of almost one and a half years, the German legislator has implemented the so-called Whistleblower Directive (Directive (EU) 2019/1937) into German law: In mid-December 2022, the German Bundestag had passed the...more
Young technology companies are focused on developing their products and bringing VC investors on board. Every euro in the budget counts, personnel is often limited, and legal advice can be expensive. For these reasons, legal...more
Today, the German Federal Labor Court (Bundesarbeitsgericht) ("FLC") made two important decisions on vacation which are of great importance for employers in Germany: In the first decision (9 AZR 266/20), the FLC held that...more
The Federal Labor Court (Bundesarbeitsgericht – BAG) (“FLC”) just published the reasons for its decision on the recording of working hours (BAG, September 13, 2022 – 1 ABR 22/21). Here are the key take-aways for all...more
This may have been a pyrrhic victory for one employer before the German Federal Labour Court that may lead to effects on all employers: While the highest German labour court found that German works councils (Betriebsräte) do...more
On June 23, 2022, the German Bundestag passed a bill to transpose the EU Directive on Transparent and Predictable Working Conditions into German law. By August 1, 2022, companies will have to comply with a comprehensive...more
Here's what happened: A Berlin startup wrote in its job ad that it is looking for a "(Junior) Key Account Manager". The company's description referred to "a young team with flat hierarchies". A 50-year-old whose application...more
Employers in Germany should not underestimate the meaning of reference letters – the German Arbeitszeugnis. German employment law and employment practice provide employers with clear guidelines as to when and how they must...more
Labor court proceedings are of great importance in Germany. Employees and employers often meet again in court, especially when it comes to the termination of their employment relationship. The German labor court procedure has...more
1. What is Agency Work? Agency work (Arbeitnehmerüberlassung) is a highly regulated business area in Germany and occurs when an employer (Agency) provides a third party (Client) with an employee employed by him, the Agency...more
Diversity and inclusion require a workplace free of prejudice and discrimination that values all employees equally, notably regardless of nationality, gender, ethnic origin, religion or belief, disability, age and sexual...more
Every player interested or already active in the German market needs to have a working knowledge of the key principles of German employment law which offers a good level of protection to employees. This is especially true for...more