Agency Workers
Reform of agency workers
rules: (1) Temporary agency workers may only be
employed by the same hirer for 18 consecutive months. After that
further employment is only possible after a 3 month gap. However
the 18 month limit can be amended by a collective bargaining
agreement.
(2) After no more than 9 months working, temporary agency workers
must receive pay equal to the main work force. However, a CBA can
extend this to a maximum of 15 months.
(3) After 6 months working temporary agency workers are counted
towards determining the right to a works council. It is then also
mandatory to disclose any agency employees.
Effective from April 1, 2017
Action required: None yet as it will take a while until first application of the new regulations (April 2017 plus at least 9 months in case of the equal pay).
Family
Reform of the German Maternity Protection
Act: New maternity rights come into force,
including :
(1) Maternity rights now also apply to female pupils and
students.
(2) A pregnant woman may now work between 8 p.m. and 10 p.m. if she
agrees and a medical clearance certificate has been submitted. The
Sunday and public holiday ban has also been relaxed so that
pregnant women are now allowed to work in any industry also on
Sundays, provided that she agrees to do so.
(3) The term of maternity protection in case of the birth of a
handicapped child is extended from 8 to 12 months.
Effective from January 1, 2017.
Action required: Become familiar with the new rules and review whether any changes are required to policies or procedures.
Pensions
Flexi – Pensions. New rules
proposed: Currently, a pensioner
who has not yet reached the statutory retirement age may improve
his pension in 10 months of a year by EUR 450, and in 2 months of a
year by EUR 900. If these amounts are exceeded by only one cent,
the pensioner would only receive a partial pension.
Under the new Flexi Pension proposals the rigid monthly earnings
thresholds are eliminated and replaced by annual thresholds of EUR
6,300.00. If this is exceeded, then 40 % of the excess amount is
deducted from the pension.
As soon as the statutory retirement age is reached, employed
pensioners are generally exempt from ‘compulsory
insurance’. Under the new rules, a pensioner may now in
writing waive their exemption from insurance liability so that the
insurance premium has a benefit enhancing effect.
Action required: None at present, but keep abreast of the current legal situation.
Minimum wages
Federal Alignment of the Minimum Wage: From January 1, 2017, the statutory minimum wage of EUR 8.50 per hour must be paid throughout Germany.
Action required: Ensure that you are complying with minimum wage rules if relevant.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.