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Ranked as the world’s 6th largest law firm by lawyer headcount and 6th largest in the UK by revenue, CMS can work for you in 40 countries from 72…
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CMS Germany | Germany | 19 Dec 2018

Potential risks of courier-delivered dismissal notices

To ensure that serving a dismissal notice will withstand a court's scrutiny, it should be handed to the employee in person and the employee should countersign a duplicate. However, if the dismissal notice is served by an external courier, the employer may have to comply with different data protection requirements to avoid breaching data protection law.
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CMS Germany | Germany | 17 Oct 2018

New maximum hiring out period expires for some contractors

In view of a statutory transition clause in the Temporary Employment Act, for some deployment agencies the 18-month maximum hiring out period will end shortly – for external employees deployed as of 1 April 2017, the expiry date could have been the end of September 2018. To avoid all possible risk of overstepping the maximum hiring out period, personnel services providers and companies using......
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CMS Germany | Germany | 24 Sep 2018

Criminal penalties for tax fraud cannot apply to breach of trust allegations

According to the Federal Court of Justice's established case law, the penalty for tax evasion of more than €1 million should generally be imprisonment rather than a suspended sentence. However, the court recently ruled that these principles cannot apply to breach of trust allegations. The decision has significant implications for white collar crime and compliance.
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CMS Germany | Germany | 3 Sep 2018

Seizure of documents relating to internal investigations – legislative changes ahead?

A recent Federal Constitutional Court decision has clarified whether documents relating to internal investigations can be regarded as defence documents. Against the hope of companies and law firms, the court rejected the general prohibition on the seizure of such documents; however, it indicated that such a prohibition should always be determined on a case-by-case basis.
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CMS Germany | European Union, Germany | 26 Jul 2018

Selective distribution: legality of third-party platform bans confirmed

The Frankfurt Higher Regional Court recently implemented the European Court of Justice's (ECJ's) sailing instruction and decided in favour of the luxury cosmetics manufacturer Coty on third-party platform bans in selective distribution. The judgment comes after the ECJ – in an abstract manner – declared third-party platform bans in the selective distribution of luxury goods permissible under......
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CMS Germany | Germany | 25 Jul 2018

Fixed-term employment contracts: three-year limit for prohibiting prior employment overturned

The Federal Constitutional Court recently restricted the option of concluding fixed-term employment contracts without an objective reason with applicants who have previously worked for the employer. The court also recognised that an unlimited prohibition on prior employment can unreasonably restrict the option of fixed-term contracts without objective reason. This ruling has consequences for......
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CMS Germany | Germany | 28 Jun 2018

Federal Court of Justice resolves dispute on limitation periods in cartel damages claims

Litigants may now seek cartel damages for a longer period as the Federal Court of Justice has affirmed the suspension of the statute of limitations for antitrust claims before 1 July 2005. The court's judgment creates legal certainty and increases Germany's attractiveness as a jurisdiction for plaintiffs in cartel damages cases. It is also a major setback for defendants in cases concerning......
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CMS Germany | Germany | 18 Jun 2018

Corporate penalties and internal investigations

The federal government plans to create new corporate penalties and abandon the discretionary principle which has thus far applied in corporate prosecutions. Further, the upper limit of penalties will be significantly increased. At the same time, the government aims to establish legal requirements for internal investigations that provide an incentive for investigation support.
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CMS Germany | European Union, Germany | 29 Mar 2018

Federal Court of Justice rules on price comparison tool ban

The Federal Court of Justice recently held that absolute prohibitions to participate in online price comparison tools imposed on distributors in selective distribution systems amount to a hardcore restriction under Article 4c of the EU Block Exemption Regulation on Vertical Restraints. A closer look at the German decision reveals some doubts as to its compatibility with two European Court of......
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CMS Germany | 14 Mar 2018

Grand coalition's plans for labour law

The Christian Democratic Union of Germany, the Christian Social Union in Bavaria and the Social Democratic Party of Germany recently concluded negotiations for a new grand coalition. The 177-page coalition agreement contains very specific proposals for changes to labour law, including with regard to the maximum duration of successive fixed-term employment contracts, substantial restrictions......
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