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Germany Employment Contract

Morgan Lewis

Changes to Labor and Employment Law by the New German Federal Government - Legal Insights Germany

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The German Bundestag has elected Friedrich Merz (Christian Democratic Union (CDU)) as federal chancellor. With the government now in place, it can begin its session. The Christian Democratic Union, Christian Social Union...more

Morgan Lewis

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

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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?

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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

Fisher Phillips

5 Points Employers Need to Know About Germany’s New Bureaucracy Reduction Act IV

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Employers in Germany are facing a significant shift in labor law under a new act that aims to streamline administrative processes and reduce bureaucracy. The goal of the German Bureaucracy Reduction Act IV (BEG IV) — which...more

Orrick, Herrington & Sutcliffe LLP

Lapse of Virtual Stock Options in the Event of Voluntary Resignation – Good Leaver or Bad Leaver?

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

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

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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

Littler

Layoffs in Germany & Poland: Differences & Similarities

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As layoff procedures in Poland and Germany are anchored in the same EU Directive, their national regulations are similar in direction, but they still have their own flavor and local specificity. Germany and Poland share...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

Ius Laboris

Re-skilling and Up-skilling: How to Win the ‘War for Talent’

Ius Laboris on

The digitalisation of work is having a profound impact on the skills that employers need from their workforce, resulting in the competing challenges of skilled worker shortages and widespread redundancies. The solution to...more

Hogan Lovells

German Labour Law – An Overview 2025

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Individual labour law centres on the relationship between a person at work and their employer, as governed by the employment contract between them. Both employee and employer are affected by these rights and duties. A number...more

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

Key Developments in German Labor and Employment Law for 2025

Labor and employment law in Germany will see a number of important developments in 2025. The Bureaucracy Relief Act IV took effect on January 1; the EU AI Act’s initial provisions on unauthorized AI take effect on February 2;...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

Fisher Phillips

Documentación laboral en Alemania: guía legal para directores de RRHH y asesores internos estadounidenses

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Los directores de RRHH y asesores internos de empresas estadounidenses que operan a escala internacional, pueden enfrentar retos al momento de presentar la documentación laboral para operar en otros países. Por ejemplo,...more

Fisher Phillips

German Employment Documentation Law: 5 Things U.S. HR Managers and In-House Counsel Need to Know

Fisher Phillips on

Navigating another country’s legal requirements can be challenging for HR managers and in-house counsel, but companies that operate internationally should recognize that employment law systems outside the United States are...more

Hogan Lovells

Increased focus of authorities on allegations of self-employment in Germany

Hogan Lovells on

Reports of investigations and raids related to false self-employment ("Scheinselbstständigkeit") have dominated headlines this week, with authorities increasing their focus on businesses across various industries. Among...more

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

Germany’s Bureaucracy Reduction Act IV Will Begin the Process of Streamlining Formal Requirements of Employment Law

The coalition agreement of the recently dissolved “Traffic Light Coalition” government in Germany had provided for counteracting the trend of increasing bureaucratic burdens, especially for companies....more

Fisher Phillips

Entendiendo el empleo temporal y las organizaciones profesionales de empleadores (PEO) en Alemania

Fisher Phillips on

En Alemania, el empleo temporal – conocido como Arbeitnehmerüberlassung o Zeitarbeit – desempeña un papel fundamental en el mercado laboral. Para las Organizaciones Profesionales de Empleadores (PEOs) y las corporaciones...more

Fisher Phillips

Understanding Temporary Employment and Professional Employer Organizations (PEOs) in Germany

Fisher Phillips on

In Germany, temporary employment — known as Arbeitnehmerüberlassung or Zeitarbeit — plays a pivotal role in the labor market. For U.S. Professional Employer Organizations (PEOs) and corporations looking to expand their...more

Littler

Cross-Border Legal Perspectives: Comparing the UK and Germany's Approaches to Unfair Dismissal

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Welcome to our new bi-monthly series, where we compare employment law and practice from an international perspective, drawing on the experience of local and international employment lawyers who deal with these issues every...more

Mayer Brown

Germany: Restrictive Covenants

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AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more

Orrick, Herrington & Sutcliffe LLP

Managing employees in Germany – What US inhouse counsel and multinationals should know

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

McDermott Will & Emery

Update Nachweisgesetz – Künftig Textform statt Schriftform ausreichend?

McDermott Will & Emery on

Bereits seit dem 1. August 2022 gilt das „neue“ Nachweisgesetz („NachwG“), das die Arbeitgeber u.a. dazu verpflichtet, ihren Mitarbeitern eine schriftliche (= mit Originalunterschrift versehene) Niederschrift über die...more

Orrick, Herrington & Sutcliffe LLP

Employers of Record (EORs) in Germany – What You Need to Know

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

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