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Germany Contract Terms Employment Contract

Morgan Lewis

German Federal Labor Court Strengthens Employee Rights for Virtual Stock Options upon Employment Termination - Legal Insights...

Morgan Lewis on

In its ruling dated March 19, 2025, the German Federal Labor Court (BAG)—in contrast to the two previous instances and contrary to its previous case law—deemed an expiry clause in general terms and conditions to be...more

Orrick, Herrington & Sutcliffe LLP

#ESOP: How to Deal with the New Case Law on the Forfeiture of Vested Virtual Shares – A Practical Update for Employers and...

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

German Federal Labor Court Finds Certain Virtual Stock Option Forfeiture Clauses May Unreasonably Disadvantage Employees

On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht or BAG) held in Case No.: 10 AZR 67/24 that certain forfeiture clauses in General Terms and Conditions of Business (Allgemeine Geschäftsbedingungen or...more

King & Spalding

VSOPs – the End of Bad Leaver Clauses in Germany?

King & Spalding on

Virtual Stock Option Plans (VSOPs) are a common tool used by companies to incentivize employees by linking part of their compensation to the company’s long-term success. Unlike traditional stock options, VSOPs do not grant...more

Paul Hastings LLP

Ruling of the German Federal Labor Court on the Invalidity of Expiry Clauses in ESOP/VSOP - Applicability of the Ruling to MEPs

Paul Hastings LLP on

On March 19, 2025, the German Federal Labor Court ("BAG") ruled that clauses that qualify as general terms and conditions and stipulate that virtual option rights that are already vested at the time of termination of an...more

Morgan Lewis

Formal Simplifications for Employment Contracts

Morgan Lewis on

The Fourth Bureaucracy Relief Act also amended the Evidence Act. Employers no longer need to inform employees of the essential contractual terms of the employment relationship in writing, but only in text form. This means...more

Orrick, Herrington & Sutcliffe LLP

Legal Ninja Snapshot: #Employment Contracts: Digital Employment Contracts in Germany – But When is a Wet Ink Signature Still...

Digital Employment Contracts Are Now Generally Allowed With the new year, the Fourth Bureaucracy Reduction Act ("BEG IV") brings more flexibility by replacing the need for written form and qualified electronic signatures with...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

German Federal Labor Court: Employers May No Longer Cite ‘Better Negotiating Skills’ as an Argument for Unequal Pay

In the past, the argument was often made that a female employee might not be entitled to a differential compensation claim due to lower pay compared to a male colleague, if the higher salary of the male colleague who...more

BCLP

Urgent Need for Action for All Employers - Amendment to the Evidence Act

BCLP on

On June 23, 2022, the German Bundestag passed the draft law (BT-Drs. 20/1636, 20/2245) in the committee version (20/2392) to implement the EU directive on transparent and predictable working conditions in the European Union...more

Hogan Lovells

The Reform Of The German Nachweisgesetz And Its Consequences For Employment Contracts

Hogan Lovells on

With effect from 1 August 2022, the German Act on Proof of the Essential Working Conditions (Nachweisgesetz – “Act on Proof”) will undergo the most comprehensive reform since it entered into force in 1995. The government...more

Hogan Lovells

Die Reform des Nachweisgesetzes und ihre Folgen für Gestaltung und Abschluss von Arbeitsverträgen

Hogan Lovells on

Das Nachweisgesetz erfährt mit Wirkung zum 1. August 2022 die größte Reform seit seinem Inkrafttreten im Jahr 1995. Der nun vorgestellte Regierungsentwurf verschafft ein klares Bild über die geplanten Neuerungen und,...more

Hogan Lovells

Vertragsgestaltung im Arbeitsrecht – Formerfordernisse vor und nach der Reform des Nachweisgesetzes

Hogan Lovells on

Arbeitsverträge unterliegen keinem Formerfordernis? Bezogen auf unbefristete Arbeitsverträge ist das grundsätzlich richtig. Dennoch werden Arbeitsverträge regelmäßig noch mit handschriftlichen Unterschriften versehen, um den...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

German Federal Labor Court States Employers Must Provide Employees With Work Equipment

On November 10, 2021, Germany’s Federal Labor Court (Bundesarbeitsgericht) ruled (Case No. 5 AZR 334/21) that employers must provide employed bicycle couriers with all the equipment essential for the performance of their...more

Orrick, Herrington & Sutcliffe LLP

Orrick’s 101 – Legal Q&A Non-Compete Clauses

This Legal Q&A two pager gives an overview of non-compete clauses with a focus on post-contractual non-competes. Non-compete clauses can effectively protect the know-how of companies, especially in the tech sector. But their...more

Orrick, Herrington & Sutcliffe LLP

Orrick’s 101 – Legal Q&A Fixed-Term Contracts

German employment law provides for rather strong dismissal protection. This is the main reason why more and more employers are hiring employees on a fixed-term basis, since this will in most cases end employment legally...more

Orrick, Herrington & Sutcliffe LLP

Ausschlussklauseln ohne Mindestlohnausnahme sind unwirksam

Seit Inkrafttreten des Mindestlohngesetzes (MiLoG) am 01.01.2015 stellt sich die Frage, ob Ausschlussklauseln in Arbeitsverträgen Ansprüche auf den Mindestlohn ausdrücklich ausnehmen müssen....more

Jones Day

The Tricky Issue of Repayment of a Bonus under German Law

Jones Day on

Some employers like the concept that employees must repay a bonus if the employee is no longer employed as of a certain date. This may be permissible in Germany, but only under narrow circumstances. On June 27, 2018, the...more

Orrick - Employment Law and Litigation

Germany – The Time to Review Your Standard Employment Contracts is Now!

A recent ruling of the Federal Labor Court will invalidate thousands of forfeiture clauses in employment contracts in Germany. Companies need to review and revise their standard employment contracts now and explore options to...more

Littler

German Labour Court Decision Forcing Employers to Reexamine Their Employment Contracts

Littler on

It is rare for the highest German labour court to issue a decision that will require employers to take immediate action with respect to their employment contracts. On September 18, 2018, however, the Federal Labour Court...more

Orrick, Herrington & Sutcliffe LLP

Employment Law in Germany – Practical Bilingual Guidelines for Chinese Businesses and Investors

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...more

BCLP

New developments on time restricted employment contracts – more “red tape” and further restrictions

BCLP on

The “Große Koalition” (the Grand Coalition) recently concluded a variety of legislative projects which will result in additional headaches, administrative hurdles, thresholds and new deadlines for HR professionals and...more

BCLP

Post-Contractual Non-Competes – a never ending story

BCLP on

There are few clauses in employment contracts more heavily debated than Non-Competition Clauses (post-contractual non-competes). While employers tend to include them rather easily in order to protect company secrets beyond...more

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