On December 18, 2015, the German legislature approved a law that
adopted the pension provisions of the EU Mobility Directive. The
Directive was passed to enhance worker mobility between EU
countries by requiring stronger pension protections, yet some EU
member countries have yet to adopt the pension provisions of the
Directive. The new German law adopts two major provisions for
Pensions will now fully vest in three
years instead of five years, and employees can participate in the
plan starting at age 21 instead of age 25.
The value of a vested pension for
former employees (inactive plan members) must now be adjusted to
remain commensurate with the vested rights of active members.
These new requirements make it easier for employees to transfer
jobs and move between EU countries by protecting pensions after
moving to a job in Germany. However, the law now provides fully
vested pensions to employees as young as age 24, and the required
adjustments to final-pay pension plans may significantly increase
an employer's pension expenses. The law will go into effect on
January 1, 2018.
The German cabinet also is considering a law that would provide
further protections to temporary employees. The law would make 18
months the maximum length for temporary employment. If the position
continues past 18 months, an employment relationship with the
hiring business is presumed. While the law would create a bright
line at 18 months, the time period is subject to deviations through
a collective agreement. The law also would require equal pay for
temporary employees after the ninth month, and would prohibit the
employment of temporary employees as strike breakers. If approved
this year, the law would go into effect on January 1, 2017.
April 2015 saw the reshaping of family-friendly leave with the birth of Shared Parental Leave (SPL). Can employers offer enhanced contractual pay to mothers/primary adopters but not to fathers/partners?
Eine zum 1. Oktober 2016 in Kraft tretende Gesetzesänderung kann einen erheblichen Einfluss auf die Standard-Arbeitsverträge vieler Unternehmen in Deutschland haben.
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