BAG: Pay grade dispute for complex casework

A German federal labor court ruling clarifies when employees handling complex insurance cases qualify for higher pay grades. The decision affects workers in public health insurance roles with specialized advisory duties.

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Ruling favors re-evaluation of job duties

The Federal Labor Court (BAG) sent a pay classification case back for review on April 22, 2026 (4 AZR 135/25 and 4 AZR 165/2). The court ruled that specialized advisory work in health insurance may qualify for higher pay grades if it involves comprehensive customer support across multiple areas. This means employees in similar roles should have their job descriptions re-examined.

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Why the court stepped in

The case involved unclear rules about what counts as „customer support” under collective bargaining agreements. The lower court had narrowly defined this term, excluding many advisory tasks. The BAG found this interpretation too restrictive and ordered a fresh look at the employee’s actual duties.

What happened in this case

Two health insurance employees handled complex cases for voluntary members, including contributions, coverage eligibility, and benefits. Their job description listed detailed advisory tasks across these areas. The employer classified them in a too low pay grade based on their responsibilities.