Germany: Employment and HR

In July 2026, the German Federal Government adopted the National Action Plan to Promote Collective Bargaining (Action Plan) and submitted it to the Bundestag in September 2026.

Can an employer terminate an employee who must serve a multi-year prison sentence? The Stuttgart Labor Court recently examined this complex question, considering factors such as prospects for early release and day-release work arrangements. This decision provides crucial guidance on employer obligations and the significant employment consequences of lengthy incarceration.

In our article Update on AGG Hopping, we provided an overview of the existing case law on “AGG hopping,” which is the practice of filing fake job applications for the sole purpose of rejection in order to file a discrimination under the General Act on Equal Treatment (“AGG”). In its judgment of May 7, 2026 (2 Ca 6536/25), the Düsseldorf Labor Court has now taken a firm stance against a “classic AGG hopper,” expressly departing from the established case law of the German Federal Labor Court.

In our article Update on AGG Hopping, we provided an overview of the existing case law on “AGG hopping,” which is the practice of filing fake job applications for the sole purpose of rejection in order to file a discrimination under the General Act on Equal Treatment (“AGG”). In its judgment of May 7, 2026 (2 Ca 6536/25), the Düsseldorf Labor Court has now taken a firm stance against a “classic AGG hopper,” expressly departing from the established case law of the German Federal Labor Court.

Germany's AGG hopping practice involves individuals submitting fake job applications solely to provoke discriminatory rejections and claim compensation under the General Act on Equal Treatment. Courts have established high thresholds for proving abuse of rights, while employers face significant liability risks despite recent case law developments and pending legislative amendments that may further complicate the landscape.

The principle of equal pay between the sexes – i.e. the principle that equal wages must be paid for equal and equivalent work – has become increasingly enforceable by law.

When a German employer hires foreign EU workers for a short-term project without proper tax and social security documentation, what appears to be a cost-effective staffing solution can quickly transform into a financial burden. Through a detailed case study and sample calculations, this analysis reveals how routine audits can expose compliance gaps that nearly double the actual employment costs.

The German Federal Labor Court issued two significant rulings in 2025 addressing the adjustment of occupational pension benefits, clarifying when flat-rate adjustment clauses can replace statutory reviews and how employers must exercise discretion in split pension formulas. These decisions have important implications for employers managing legacy pension commitments and determining benefit adjustments above social security contribution ceilings.

Germany's Pension Commission has proposed sweeping reforms that would fundamentally reshape retirement planning, workforce transitions, and employment structures. From dynamic retirement ages linked to life expectancy to the potential elimination of the senior part-time block model and minijobs, these recommendations carry profound implications for employers navigating restructuring, social plans, and pension commitments.

Can an employer terminate an employee who must serve a multi-year prison sentence? The Stuttgart Labor Court recently examined this complex question, considering factors such as prospects for early release and day-release work arrangements. This decision provides crucial guidance on employer obligations and the significant employment consequences of lengthy incarceration.

The German Federal Labour Court examines whether minor errors in mass dismissal notifications automatically invalidate terminations, providing crucial guidance for employers navigating collective redundancy procedures. This commentary analyzes the court's June 25, 2026 ruling and its implications for employment law practice.

Germany's proposed employment law reform would allow employers to terminate high earners earning above EUR 177,450 annually in exchange for court-determined severance, even after losing unfair dismissal litigation.