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
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
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
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
2022 has several changes in store for employment law. We outline the top 10 of the most important changes in our Insight. 1. Special regulations on COVID-19 in 2022 The so-called "Corona bonus" of EUR 1,500.00, which can be...more
In Germany, regular works council elections are held every four years, from March 1 through May 31. The next election period will begin shortly, starting on March 1, 2022. Companies should prepare early on for the election...more
Now things are to move quickly. After the prevailing legal view was that most German employers outside the medical and nursing professions could not even ask about their employee's vaccination status, the three political...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
During the Corona pandemic, bike delivery services experienced a boom in Germany. One provider has been newly listed on the major German stock index DAX, another one is the fastest-growing German unicorn of all times. Major...more
1.1 The Basics
The formation of the employment contract is generally subject to the same requirements as any other contract. There must be an offer and an acceptance (either oral or in writing), an intention to enter into...more