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56 Pages on the Tag „Employment Law“
Inflation bonus during phased retirement?
state: 2.8.2026, reading time approx. 2 min
The Federal Labor Court ruled that employees in block-model phased retirement receive inflation compensation payments only proportionally to their reduced working hours. The decision affects public sector workers with phased retirement agreements.
When does a pension increase take effect?
state: 2.8.2026, reading time approx. 2 min
A recent ruling by Germany’s Federal Labor Court (BAG) clarifies when pension adjustments based on wage increases must take effect. The court decided that pension increases only apply after the wage increase period has ended, not simultaneously. This affects retirees receiving company pensions tied to current wage developments.
Can a German contract override foreign labor laws?
state: 30.7.2026, reading time approx. 2 min
A German employer’s standard contract clause choosing German law was ruled invalid because it didn’t clarify that Dutch labor protections could still apply. The ruling affects cross-border remote workers and highlights the need for clear legal disclaimers in employment contracts.
Can your employer take away your company car after quitting?
state: 29.7.2026, reading time approx. 1 min
A German federal labor court ruled that employers cannot unilaterally suspend employees after termination without valid reasons. This affects benefits like company cars, which may still be owed during the notice period. Case: 5 AZR 108/25 (2026).
Can an employer reduce a works council member's pay?
state: 23.7.2026, reading time approx. 2 min
Germany’s Federal Labor Court ruled that employers can’t unilaterally reduce pay for works council members unless they prove the original pay adjustment was incorrect. The case involved a long-serving works council member whose pay was cut from level 14 to 13 after the company reviewed compensation practices.
Can a settlement end your job without a real reason?
state: 23.7.2026, reading time approx. 2 min
A German court ruled that a settlement agreement ending employment must involve active court participation to be legally valid. Employees cannot be forced into fixed-term contracts without proper justification, even if both sides agree.
Which union’s pay deal applies at my workplace?
state: 21.7.2026, reading time approx. 2 min
Germany’s Federal Labor Court ruled that only the pay deal of the union with the most members at a workplace applies—even if multiple unions negotiated contracts. The decision affects train drivers and other employees at Deutsche Bahn subsidiaries.
Do pipe cleaning services require social fund contributions?
state: 17.7.2026, reading time approx. 2 min
A German federal labor court ruled that pipe cleaning inside buildings qualifies as construction work, requiring employers to pay social fund contributions. The decision affects businesses performing maintenance on drainage systems, even if no structural changes occur.
Can a bonus plan be imposed without clear rules?
state: 17.7.2026, reading time approx. 2 min
The Federal Labor Court ruled that a company’s bonus plan is invalid if it leaves key distribution decisions to management without clear guidelines. The decision (1 ABR 23/25) affects both performance-based bonuses and profit-sharing for employees.
Is a letterbox delivery valid without a handover attempt?
state: 11.7.2026, reading time approx. 2 min
A German Federal Labor Court ruling clarifies that dropping legal documents in a company’s mailbox is only valid if a personal handover was first attempted. This affects deadlines for appeals and other legal actions. Decision from March 25, 2026 (5 AZR 65/25).