Germany: Employee Rights/ Labour Relations

Bei einer Entsendung bleibt der Arbeitnehmer organisatorisch beim entsendenden Unternehmen eingegliedert, erhält fachliche Weisungen vom Heimatarbeitgeber und erbringt eine „Aktivleistung”

In our article on the German Federal Labor Court’s press release of 25 March 2026 (5 AZR 108/25), we discussed why blanket garden leave clauses may be unenforceable. The Court’s published reasoning now provides further guidance on drafting garden leave clauses, placing employees on garden leave in individual cases, and revoking company car benefits during the notice period.

Die Bundesregierung plant, die Nutzung von Vorrats-SE zur Umgehung des deutschen Mitbestimmungsrechts einzuschränken. Unternehmen mit laufenden oder geplanten SE-Strukturen sollten ihre Optionen prüfen und die Entwicklung aufmerksam verfolgen. Welche rechtlichen Alternativen bestehen und was bei der Umstrukturierung zu beachten ist, bleibt vorerst offen.

German employment law requires employees to cooperate with internal investigations through fact-finding interviews, but this duty operates within strict boundaries of fairness, proportionality, and whistleblower protection. Organizations must balance their need to secure facts quickly with procedural safeguards including corporate counsel warnings, neutral questioning, representation rights, and compliance with the Whistleblower Protection Act's confidentiality and anti-retaliation requirements.

Germany's coalition government has proposed requiring employees to submit medical certificates from the first day of illness, eliminating telephone-based sick leave certification. While this appears to be a significant policy shift, employers already possess the discretionary right to demand early certification under existing law, raising questions about what will actually change once the legislation takes effect.

The German Coalition Committee has proposed sweeping employment law reforms that could fundamentally alter how companies manage their workforce, from introducing new termination options for high earners to expanding fixed-term employment flexibility. These changes, part of a comprehensive "Program for Growth and Employment," would impact everything from dismissal procedures and severance payments to sick leave documentation and working time regulations. Employers should closely monitor these developments as

The leaders of the CDU/CSU and SPD agreed on the conclusion of a coalition agreement. This must now be approved by the respective party committees...

As digitalization accelerates, the "Employer of Record" (EoR) model has become an attractive solution for hiring international talent. However, in October 2024, Germany's Federal...

A recent case in the German Federal Labour Court has strengthened the enforcement of equal pay claims and provided some helpful guidance for employers ahead of expected draft legislation to transpose the EU..