CMS Germany | Germany | 25 Feb 2015
Pursuant to the Minimum Wage Act, every worker in Germany is now entitled to the minimum wage. This applies regardless of whether the employer is domiciled in Germany or abroad. Breach of the obligation to pay the minimum wage has various legal consequences. Anyone that intentionally or negligently does not pay the owed minimum wage or does not pay it in due time will face a fine of up to......
CMS Germany | Germany | 17 Dec 2014
The Federal Labour Court has allowed the claim of an employee who resigned and thus did not receive a Christmas gratuity. The court allowed his claim because the bonus was not simply a gratuity with the sole purpose of giving money on the occasion of Christmas; rather, the company guidelines made clear that the bonus was also intended as consideration for work performed.
CMS Germany | Germany | 15 Oct 2014
The termination of an employment relationship due to a transfer of business pursuant to the Civil Code is not permitted. The prerequisites for valid dismissals based on a buyer's concept can be met only if buyer and seller have agreed on a concept that eliminates the possibility of employment and in fact has already taken on a tangible form at the time dismissal notices are issued.
CMS Germany | Germany | 27 Aug 2014
Internet access in the workplace can become problematic when an employer considers the extent to which private internet use is permitted during working hours or restricted and controlled. In the event of unauthorised private internet use, the employer can issue an official warning, dismiss the employee on grounds of conduct or terminate employment without notice, depending on the individual case.
CMS Germany | Germany | 25 Jun 2014
For as long as an employment relationship lasts, an employee must not compete against his or her employer. Even where there is no express clause in the employment contract, an employee must respect the business interests of the employer. A restrictive covenant intended to prevent employees from competing with their employers after their employment has ended can be enforced only if it meets......
CMS Germany | Germany | 23 Apr 2014
According to the Act on Protection Against Unfair Dismissal, in a difficult economic situation employers are obliged to select employees for dismissal based on social criteria. The employer must consider length of employment, age, support obligations and any severe disability of the respective comparable employees. Consequently, it is usually young employees who are dismissed.
CMS Germany | Germany | 18 Dec 2013
Many companies pay employees a Christmas bonus, often to reward company loyalty. But do employers have the right to discontinue such bonuses? The Federal Labour Court has expressed doubts that an ex gratia provision in an employment contract can prevent an entitlement from becoming established as a result of unconditional payment.
CMS Germany | Germany | 16 Oct 2013
A recent Federal Labour Court decision on the works council's right to refuse consent when hiring temporary employees into permanent positions restricts the replacement of core staff with temporary employees. The court stated that the Temporary Employment Act contains a non-binding guideline and prohibits any temporary provision of temporary workers.
CMS Germany | Germany | 21 Aug 2013
In the wake of the financial crisis, courts have frequently had to address whether an employer has the right to eliminate an employee's bonus, even if the employee has achieved his or her personal targets. For companies to avoid high bonus payments when financial results are poor, it should be clearly stipulated in the employment contract that financial results are the primary requirement for......
CMS Germany | Germany | 17 Jul 2013
According to the Part-Time and Fixed-Term Employment Act, fixed-term employment agreements are, in principle, valid only if the term is justified on objective grounds. For employers frequently utilising such contracts and operating with successive fixed terms, it is imperative to obtain up-to-date information in order to avoid difficulties. Employers should keep the length of fixed-term......