Chapter 7: Employment - Germany Employment Law PDF

Chapter 7: Employment Ê Traditionally, the legal framework consists of three levels: Ê the individual employment relationship; Ê information, consultation and co-determination rights of employee representative bodies; and...

Chapter 7: Employment Ê Traditionally, the legal framework consists of three levels: Ê the individual employment relationship; Ê information, consultation and co-determination rights of employee representative bodies; and Ê collective bargaining agreements between companies, associations and unions. (bakermckenzie.doing-business-in-germany.pdf, page 87.) English 1 126 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 1. Terms of Employment Ê In a typical German employment relationship, the parties agree all material terms and conditions of employment in a written contract. Verbal agreements, even though permitted by law, should be avoided, as they are a regular source for disputes. Employment contracts must consider any existing collective regulations, such as works council agreements and collective bargaining agreements, and they should also address company policies. It is very common for flexible remuneration components, such as bonus, commission, equity rights or occupational pensions, to be dealt with separately. Ê Employment contracts qualify as general terms and conditions under German law: they must be clear, transparent and must not unreasonably disadvantage the employee. (bakermckenzie.doing-business-in-germany.pdf, page 87.) English 1 127 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Ê There is detailed legislation in Germany on working conditions. In numerous cases, the law sets forth mandatory provisions, which employers cannot opt out of. Ê 2.1 Fixed-Term Employment Ê Fixed-term employment contracts can be concluded with or without objective reason. This is stated in the Part-Time and Fixed-Term Employment Act (TzBfG). An employment contract may be limited to a calendar of up to two years if there is no objective reason. During this time, an extension may be made a maximum of three times. Ê Pursuant to Section 14 (2) of the TzBfG, a fixed-term employment contract may be extended a maximum of three times without objective reason. A total of 4 (and not 3) fixed-term contracts without objective reason are therefore permissible in a maximum period of 2 years. Ê After a maximum of two years, the employment contract ends automatically or must be changed to an employment relationship of indefinite duration. (2) Die kalendermäßige Befristung eines Arbeitsvertrages ohne Vorliegen eines sachlichen Grundes ist bis zur Dauer von zwei Jahren zulässig; bis zu dieser Gesamtdauer von zwei Jahren ist auch die höchstens dreimalige Verlängerung eines kalendermäßig befristeten Arbeitsvertrages zulässig. (bakermckenzie.doing-business-in-germany.pdf, page 88.) English 1 128 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.2 Part-Time Employment Ê General entitlement to part-time work: In Germany, the right to part- time work has been enshrined in law since 2001. The Part-Time and Fixed-Term Employment Act (TzBfG) stipulates that employers must allow their employees to reduce their working hours under certain (1) Ein Arbeitnehmer, dessen Arbeitsverhältnis länger als sechs Monate conditions. bestanden hat, kann verlangen, dass seine vertraglich vereinbarte Arbeitszeit verringert wird. Ê Paragraph 8 of the TzBfG provides that every employee has the option of reducing his or her working hours. The prerequisite for this is that the employment relationship has already existed for six months. The company must also employ more than 15 people. Employees must express their wish to reduce their weekly working hours, the desired extent and the distribution at least three months before the start of the work. (bakermckenzie.doing-business-in-germany.pdf, page 88.) English 1 129 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.3 Working Hours Ê German legislation provides for a regular working day of a maximum of eight hours. Employers may extend the daily working time to 10 hours if, within a six-month period, the average daily working time does not exceed eight hours. Collective bargaining agreements may provide for extensions. The maximum hours include overtime work. (bakermckenzie.doing-business-in-germany.pdf, page 89.) English 1 130 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Arbeitszeitgesetz (ArbZG) Working Hours Act (ArbZG) § 3 Arbeitszeit der Arbeitnehmer § 3 Working hours of employees Die werktägliche Arbeitszeit der Arbeitnehmer darf acht Stunden nicht überschreiten. Sie kann auf Employees' working hours bis zu zehn Stunden nur verlängert may not exceed eight hours. It werden, wenn innerhalb von sechs can only be extended to up to Kalendermonaten oder innerhalb ten hours if an average of von 24 Wochen im Durchschnitt eight hours per working day is acht Stunden werktäglich nicht überschritten werden. not exceeded within six calendar months or within 24 weeks. (bakermckenzie.doing-business-in-germany.pdf, page 89.) English 1 131 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.4 Base Salary Ê It is very common in Germany for employment contracts to provide for a certain sum to be paid as base salary. Ê Parties to a collective bargaining agreement, however, are free to establish other minimum standards, and some have done so. If the employment contract is subject to a collective bargaining agreement, the salary must not be lower than the amount specified in the relevant collective bargaining agreement. A number of collective bargaining agreements are generally applicable for companies of a certain industry sector in certain regions. Any company doing business in Germany needs to review this situation carefully to assess whether or not such collective minimum standards apply. (bakermckenzie.doing-business-in-germany.pdf, page 89.) English 1 132 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.4 Base Salary Ê Gesetz zur Regelung eines allgemeinen Mindestlohns (Mindestlohngesetz - MiLoG) Ê Act on the Regulation of a General Minimum Wage (Minimum Wage Act - MiLoG) Ê The next increase in the general statutory minimum wage will take place on 1 January 2024. On 26 June 2023, the Minimum Wage Commission passed a decision on the amount to be adjusted to the minimum wage. According to this, the statutory minimum wage is to rise to 12.41 euros on 1 January 2024, and to 12.82 euros one year later, on 1 January 2025. (bakermckenzie.doing-business-in-germany.pdf, page 89.) English 1 133 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.4 Base Salary (10 minutes): Please describe the Act on the Regulation of a General Minimum Wage. (It is not necessary for you to name the exact values. All that is required is a general description.) What do you think of this law? So, do you think it's right that we have this law in Germany? Please explain your assessment! (bakermckenzie.doing-business-in-germany.pdf, page 89.) English 1 134 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.5 Christmas and Vacation Payment Ê WHAT ARE SPECIAL ALLOWANCES? Special remuneration refers to benefits provided by the employer that are not part of the regular remuneration but are granted – usually once a year – for a specific reason or on a specific date. In practice, Christmas or holiday bonuses, 13th-month salary, year-end bonuses or anniversary bonuses are particularly relevant. Ê IS THERE A LEGAL OBLIGATION TO PAY SPECIAL REMUNERATION, SUCH AS CHRISTMAS OR HOLIDAY BONUSES? No! There is no general legal obligation. The legal basis can be, for example, an individual agreement or a collective agreement. (bakermckenzie.doing-business-in-germany.pdf, page 90.) English 1 135 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.5 Christmas and Vacation Payment Ê In Germany, it is common to pay an additional full or partial salary payment during vacation time in summer and before Christmas. A pro rata payment can be agreed on if the employment commences or ends during a calendar year. Ê Often, employees receive one-off payments in addition to the basic salary for certain reasons. Examples are Christmas bonuses, bonuses, the 13th month's salary or holiday pay. (bakermckenzie.doing-business-in-germany.pdf, page 90.) English 1 136 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.6 Bonus Ê A bonus is a benefit provided by the employer in addition to the basic salary. Ê As a rule, the bonus is linked to the individual performance of the individual employee(s) - or to the performance of the company or department. Ê In general, the bonus is intended to be an incentive for employees to achieve above-average work results. Ê Thus, the bonus payment in the narrower sense is a target remuneration as opposed to the conventional time remuneration. The details of the target salary are usually negotiated between the employer and the employee in a target agreement. This is based on defined framework conditions. (bakermckenzie.doing-business-in-germany.pdf, page 90.) English 1 137 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.7 Overtime Pay Ê There are no statutory provisions on remuneration for overtime worked. The ArbZG also only regulates the question of the upper limit up to which overtime is permissible, but not whether and to what extent it is to be remunerated. Ê There are no statutory provisions regarding bonuses for overtime worked. An exception is made by the ArbZG for night work. In principle, a special surcharge is only payable if it is contractually agreed in terms of reason and amount (in particular by collective agreement, works agreement and employment contract), or if it is customary in the company or industry. § 6 ArbZG Nacht- und Schichtarbeit (5) Soweit keine tarifvertraglichen Ausgleichsregelungen bestehen, hat der Arbeitgeber dem Nachtarbeitnehmer für die während der Nachtzeit geleisteten Arbeitsstunden eine angemessene Zahl bezahlter freier Tage oder einen angemessenen Zuschlag auf das ihm hierfür zustehende Bruttoarbeitsentgelt zu gewähren. (bakermckenzie.doing-business-in-germany.pdf, page 90.) English 1 138 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.7 Overtime Pay Ê Contractual clauses stipulating that the base salary shall compensate the employees for any and all overtime work are likely to be held invalid, should they be contested in court: under German law, such clauses must specify the actual number of overtime hours being compensated by the base salary, and the amount of such overtime work should not exceed 20% of the regular working time agreed for the same period of time. Any additional overtime work would need to be compensated either by time off in lieu or additional remuneration. (bakermckenzie.doing-business-in-germany.pdf, page 90.) English 1 139 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.8 Commission Ê Some employees receive a substantial part of their remuneration in the form of commission. Commission is the typical remuneration of self-employed sales representatives, and it is also very common for employed sales agents. Ê The commission payable will normally be calculated as a certain percentage of the turnover generated by the employee. Ê Example: As a bank employee, you sell building savings contracts (home loan and savings contract) and life insurance policies. You will earn a commission for these sales. (bakermckenzie.doing-business-in-germany.pdf, page 91.) English 1 140 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.9 Company Car / Car Allowance Ê A company car can be granted for professional use only. In most cases, however, the employee is also entitled to use the company car for private purposes. This is a taxable monetary benefit, but it enjoys favorable treatment under German income tax law. Alternatively, a company could pay a car allowance on top of salary. Having said that, a company car is a highly valued benefit and rather common for senior employees or those who have to travel extensively. Ê There is no general entitlement to a company car. Not even in managerial positions, even if this is rather common nowadays, represents a further component of remuneration in the sense of a benefit in kind in the context of the private use granted and, last but not least, is still a status symbol. Ê In principle, there is only an entitlement to a company car if it has been agreed. This could also be done verbally, but in any case, it should be put in writing to avoid later disputes. (bakermckenzie.doing-business-in-germany.pdf, page 91.) English 1 141 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.10 Reimbursement of Expenses Ê An employer must reimburse its employees for any expenses which could reasonably be considered as necessary in performing their working duties. Reimbursement of expenses is not part of the employee's remuneration but is an independent legal claim which can be invoked even if not mentioned in the employment contract. Ê Example: As a professor in our faculty, I attend the Gymnasium in Friedrichroda. I inform about study opportunities in Schmalkalden. It is an official purpose. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 142 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.11 Public Holidays Ê On Sundays and public holidays, work is usually not permitted, although there are certain statutory exceptions. If an employee works unlawfully on Sundays or legal holidays, the manager who is responsible may be subject to fines. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 143 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.11 Public Holidays In the United States, there are several public holidays that are widely observed. Some of the major ones include: (1) New Year's Day - January 1 (2) Martin Luther King Jr. Day - Third Monday in January (3) Presidents' Day - Third Monday in February (4) Memorial Day - Last Monday in May (5) Independence Day - July 4 (6) Labor Day - First Monday in September (7) Columbus Day - Second Monday in October (8) Veterans Day - November 11 (9) Thanksgiving Day - Fourth Thursday in November (10) Christmas Day - December 25 These holidays are recognized at the federal level, and some states may also have additional holidays or variations in the observance of certain holidays. Additionally, some holidays may be observed on different dates in different states. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 144 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.12 Paid Annual Leave Ê Employees are entitled to annual leave of at least 24 working days based on a five-day working week (minimum period of four weeks per year) regardless of daily working hours. An employee is entitled to take his or her first period of leave after the first six months of employment. Ê As a general rule, the employee may then claim his or her full annual vacation allowance without regard to the date on which his or her employment started or will be terminated. On the other hand, if the employment relationship ends prior to or at the expiry of the six- month waiting period, the employee is entitled to the annual leave accrued on a pro rata basis, as soon as the employment relationship ceases (e.g. if a fixed term of not more than six months is agreed in advance or the contract is terminated either unilaterally or by mutual agreement). (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 145 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany § 11 Urlaubsentgelt § 11 Holiday pay (1) Das Urlaubsentgelt bemißt sich nach dem (1) Remuneration for annual leave shall be durchschnittlichen Arbeitsverdienst, das der calculated on the basis of the average earnings Arbeitnehmer in den letzten dreizehn Wochen vor received by the employee in the thirteen weeks dem Beginn des Urlaubs erhalten hat, mit preceding the commencement of the leave, with Ausnahme des zusätzlich für Überstunden the exception of additional earnings paid for gezahlten Arbeitsverdienstes. Bei overtime. In the case of increases in earnings, Verdiensterhöhungen nicht nur vorübergehender which are not merely temporary, which occur during Natur, die während des Berechnungszeitraums the calculation period or during the leave, the oder des Urlaubs eintreten, ist von dem erhöhten increased earnings are to be assumed. Reductions Verdienst auszugehen. Verdienstkürzungen, die im in earnings that occur in the calculation period as a Berechnungszeitraum infolge von Kurzarbeit, result of short-time work, loss of work or absence Arbeitsausfällen oder unverschuldeter from work through no fault of one's own are not Arbeitsversäumnis eintreten, bleiben für die taken into account for the calculation of holiday Berechnung des Urlaubsentgelts außer Betracht. pay. Remuneration in kind which is not paid during Zum Arbeitsentgelt gehörende Sachbezüge, die the leave must be paid appropriately in cash for the während des Urlaubs nicht weitergewährt werden, duration of the leave. sind für die Dauer des Urlaubs angemessen in bar abzugelten. (2) The holiday pay shall be paid before the start of (2) Das Urlaubsentgelt ist vor Antritt des Urlaubs the leave. auszuzahlen. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 146 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.12 Bezahlter Jahresurlaub 2.12 Paid Annual Leave Mindesturlaubsgesetz für Minimum Leave Act for Arbeitnehmer Employees (Federal Leave (Bundesurlaubsgesetz) § 3 Dauer des Urlaubs Act) § 3 Duration of leave (1) Der Urlaub beträgt jährlich (1) Leave shall be at least 24 mindestens 24 Werktage. working days per year. (2) Working days are all (2) Als Werktage gelten alle calendar days that are not Kalendertage, die nicht Sonn- Sundays or public holidays. oder gesetzliche Feiertage sind. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 147 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany (10 minutes): Investors from abroad who want to do business in Germany must also be familiar with German employment law. Please help a foreign investor and explain to him in a few sentences what is meant by "Paid Annual Leave" in Germany. I am also very interested in your opinion: How should the "Paid Annual Leave" be designed for you personally? (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 148 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.13 Sick Pay Ê An employee who is unable to work due to sickness will receive sick pay from the employer, unless he or she has been employed for less than four weeks or where the sickness in question has been caused by the employee him or herself. (Gesetz über die Zahlung des Arbeitsentgelts an Feiertagen und im Krankheitsfall (Entgeltfortzahlungsgesetz)) Fault in this case is limited to intentionally or gross negligently causing the sickness. German statute provides that, where an employee is sick, 100% of the employee's regular salary will be paid for a maximum period of six weeks. The employment contract may provide for a longer period. Ê Once the employer's liability to pay sick pay ceases, public health insurance becomes responsible for a reduced level of sick pay to employees who are enrolled in the public health insurance scheme. (bakermckenzie.doing-business-in-germany.pdf, page 93.) English 1 149 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany § 3 Anspruch auf § 3 Entitlement to continued Entgeltfortzahlung im payment of remuneration in the Krankheitsfall event of illness (1) Wird ein Arbeitnehmer durch (1) If an employee is prevented Arbeitsunfähigkeit infolge from performing his work due to Krankheit an seiner Arbeitsleistung incapacity for work due to illness verhindert, ohne daß ihn ein through no fault of his own, he Verschulden trifft, so hat er shall be entitled to continued Anspruch auf Entgeltfortzahlung payment of remuneration in the im Krankheitsfall durch den event of illness by the employer Arbeitgeber für die Zeit der for the period of incapacity for Arbeitsunfähigkeit bis zur Dauer von sechs Wochen. work for a period of up to six weeks. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 150 Prof. Dr. Prof. h.c. Schellberg 2.14 Care Leave You are the president of our university and have to manage labor law problems, among other things. Human resources management and labor law are important questions if you want to do business in Germany. This means that basic knowledge is essential. You will receive the following mail from me: “Dear Mr. President, my wife is ill and was able to leave the university clinic at the weekend. This causes an acute care situation. I need time up to and including Wednesday to organize needs-based care and at the same time to ensure nursing care during this time. This causes a short-term inability to work. Best regards, Bernhard Schellberg” 151 2.14 Care Leave You cannot judge the legal consequences of my mail. In particular, ask yourself whether I have a legal claim. This legal entitlement can be that I am released from work until Wednesday. As the head of the university, you will ask the Thuringian state government, which will provide you with the following information: “To improve the compatibility of family, care and work, employees have to take care of the Family Care Leave Act under certain conditions, entitlement to full or partial time off from work. Depending on the care situation, the following options are available: 152 2.14 Care Leave “1. Care leave as a time out of up to ten days in the event of acute care with replacement benefit employees are entitled to up to ten days off from work if this is necessary, in order to provide a care for a close relative in need of care in an acute care situation to organize needs-based care or to ensure nursing care during this time. The inability to work and its expected duration must be reported to the personnel management department immediately. This leave of absence must be declared by the employee. An explicit permission of the employer is not required.” 153  Gesetz über die Pflegezeit (Pflegezeitgesetz - PflegeZG) PflegeZG 2.14 Care Leave Ausfertigungsdatum: 28.05.2008 Vollzitat: "Pflegezeitgesetz vom 28. Mai 2008 (BGBl. I S. 874, 896), das zuletzt durch Artikel 2 des Gesetzes vom 19. The Ministry also points out the legal basis for this Dezember 2022 (BGBl. I S. 2510) geändert worden ist" information: Act on Care Leave (Care Leave Act - PflegeZG) Stand: Zuletzt geändert durch Art. 2 G v. 19.12.2022 I 2510 § 1 Aim of the Act The aim of the law is to give employees the Fußnote opportunity to care for close relatives in need of (+++ Textnachweis ab: 1.7.2008 +++) care in a home environment and thus to improve (+++ Zur Anwendung d. §§ 2 u. 3 vgl. § 9 F. 2020-05-19 +++) the compatibility of work and family care. § 2 Short-term inability to work (1) Employees have the right to be absent from Das G wurde als Artikel 3 des G v. 28.5.2008 I 874 vom Bundestag beschlossen. Es tritt gem. Art. 17 Abs. 1 dieses G am 1.7.2008 in Kraft. work for up to ten working days if this is necessary in order to organize needs-based care § 1 Ziel des Gesetzes for a close relative in need of care in an acute care Ziel des Gesetzes ist, Beschäftigten die Möglichkeit zu eröffnen, pflegebedürftige nahe Angehörige in häuslicher situation or to ensure nursing care during this Umgebung zu pflegen und damit die Vereinbarkeit von Beruf und familiärer Pflege zu verbessern. time. (2) Employees shall be obliged to inform the § 2 Kurzzeitige Arbeitsverhinderung employer immediately of their inability to perform (1) Beschäftigte haben das Recht, bis zu zehn Arbeitstage der Arbeit fernzubleiben, wenn dies erforderlich ist, um work and its expected duration. Upon request, für einen pflegebedürftigen nahen Angehörigen in einer akut aufgetretenen Pflegesituation eine bedarfsgerechte the employer shall be provided with a medical Pflege zu organisieren oder eine pflegerische Versorgung in dieser Zeit sicherzustellen. certificate stating the need for care of the close relative and the necessity of the measures (2) Beschäftigte sind verpflichtet, dem Arbeitgeber ihre Verhinderung an der Arbeitsleistung und deren voraussichtliche Dauer unverzüglich mitzuteilen. Dem Arbeitgeber ist auf Verlangen eine ärztliche Bescheinigung referred to in subsection (1). über die Pflegebedürftigkeit des nahen Angehörigen und die Erforderlichkeit der in Absatz 1 genannten 154 Maßnahmen vorzulegen. (3) Der Arbeitgeber ist zur Fortzahlung der Vergütung nur verpflichtet, soweit sich eine solche Verpflichtung aus anderen gesetzlichen Vorschriften oder auf Grund einer Vereinbarung ergibt. Ein Anspruch der Beschäftigten auf 2.14 Care Leave Please prepare short presentations to answer these questions by the following lecture on November 5, 2024 (2:15 – 3:45 p.m.): 1. Does the president have to grant the employee leave of absence? 2. What does the employee have to do? 3. Does the employee need permission from the employer if he does not want to come to work in the present case? 155  Chapter 7: Employment 2. Working Conditions in Germany 2.15 Maternity Protection Leave and Parental Leave Ê Pregnant employees enjoy special protection against termination. Furthermore, they are prohibited from working within the last six weeks of pregnancy and within eight weeks afterwards. Ê During this protection period, the mother's salary is partly paid by the government. (bakermckenzie.doing-business-in-germany.pdf, page 93.) English 1 156 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Gesetz zum Schutz von Müttern bei der Act on the Protection of Mothers Arbeit, in der Ausbildung und im at Work, in Training and in Studium (Mutterschutzgesetz - MuSchG) Studies (Maternity Protection Act § 3 Schutzfristen vor und nach der - MuSchG) Entbindung § 3 Periods of protection before (1) Der Arbeitgeber darf eine schwangere Frau in den letzten sechs Wochen vor der and after childbirth Entbindung nicht beschäftigen (Schutzfrist vor der Entbindung), soweit sie sich nicht (1) The employer may not employ a zur Arbeitsleistung ausdrücklich bereit pregnant woman in the last six erklärt. … weeks before childbirth (protection (2) Der Arbeitgeber darf eine Frau bis zum period before childbirth) unless she Ablauf von acht Wochen nach der expressly agrees to work.... Entbindung nicht beschäftigen (Schutzfrist (2) The employer may not employ a nach der Entbindung). … woman until the end of eight weeks after childbirth (protection period after childbirth). … (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 157 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany § 19 Mutterschaftsgeld § 19 Maternity benefit (1) Eine Frau, die Mitglied einer (1) A woman who is a member of gesetzlichen Krankenkasse ist, a statutory health insurance fund erhält für die Zeit der shall receive maternity benefit for Schutzfristen vor und nach der the period of protection before Entbindung sowie für den and after childbirth and for the day Entbindungstag Mutterschaftsgeld of delivery in accordance with the nach den Vorschriften des provisions of Book Five of the Fünften Buches Sozialgesetzbuch Social Code or in accordance with oder nach den Vorschriften des the provisions of the Second Law Zweiten Gesetzes über die on Farmers' Health Insurance. Krankenversicherung der Landwirte. (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 158 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.15 Maternity Protection Leave and Parental Leave Ê After maternity leave, either parent is entitled to special leave called "parental leave". Parental leave can be taken for up to 36 months until the child has reached the age of three. It may be taken in several periods by either parent or combined by both parents. With the consent of the employer, a maximum period of 12 months can be taken as parental leave until the child has reached the age of eight. During parental leave, the employee can also request a part-time arrangement between 15 and 30 hours per week for a minimum period of two months. During parental leave, employment can only be terminated upon prior approval by the competent authorities. The employee can apply for specific parental allowance paid by the government. (bakermckenzie.doing-business-in-germany.pdf, page 93.) English 1 159 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Gesetz zum Elterngeld und zur Elternzeit Act on Parental Allowance and (Bundeselterngeld- und Elternzeitgesetz - Parental Leave (Federal Parental BEEG) Allowance and Parental Leave Act - § 15 Anspruch auf Elternzeit BEEG) § 15 Entitlement to parental leave (2) Der Anspruch auf Elternzeit besteht bis zur Vollendung des dritten Lebensjahres (2) The entitlement to parental leave eines Kindes. Ein Anteil von bis zu 24 lasts until a child reaches the age of three. A portion of up to 24 months Monaten kann zwischen dem dritten Geburtstag und dem vollendeten achten can be claimed between the child's third birthday and the child's eighth Lebensjahr des Kindes in Anspruch birthday. … genommen werden... (3) Parental leave may be taken by (3) Die Elternzeit kann, auch anteilig, von each parent alone or by both parents jedem Elternteil allein oder von beiden jointly, even on a pro rata basis.... Elternteilen gemeinsam genommen werden. … (bakermckenzie.doing-business-in-germany.pdf, page 92.) English 1 160 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany (12 minutes): Please describe “maternity protection leave” and “parental leave” in your own words. (bakermckenzie.doing-business-in-germany.pdf, page 94.) English 1 161 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.16 Confidentiality and Restraints against Competition Ê Employees are obliged to maintain confidentiality about certain internal company and company matters during the duration of the employment relationship. The prerequisite for this is that the employer has a legitimate economic interest in secrecy. After the termination of the employment relationship, this duty of confidentiality continues to exist to a large extent. Ê The duty of confidentiality is an ancillary obligation in the employment contract. Since the end of April 2019, the Act for the Protection against Trade Secrets (GeschGehG), which implemented the EU Directive on the Protection of Trade Secrets, has also been in force. (bakermckenzie.doing-business-in-germany.pdf, page 94.) English 1 162 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.16 Confidentiality and Restraints against Competition Ê During employment, the employee is prohibited from working for a competitor, and from soliciting customers, suppliers or employees. Post-employment, the employee is generally free to compete and solicit customers and employees, if not bound by a post-contractual non-compete and non-solicitation covenant. Such covenants are subject to compensation payments to the employee. (bakermckenzie.doing-business-in-germany.pdf, page 94.) English 1 163 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.17 Suspension from Work; Garden Leave Ê Employees undertake to perform their work by signing the employment contract. The employer must ensure that appropriate employment takes place. In practice, however, there are cases where the employer is willing and entitled to release his employee from employment. Ê In particular, when employers part ways with employees as part of a dismissal, this is often accompanied by a release from work. This is done either by unilateral order of the employer or by mutual agreement between the employee and the employer. In this case, the employee is either temporarily or permanently relieved of his or her work performance. He is "exempted". Ê In the event of a personal inability to work, an employee is entitled to paid leave of absence if he or she is prevented from working for a relatively insignificant period of time through no fault of his/her own (§ 616 of the German Civil Code - BGB). (bakermckenzie.doing-business-in-germany.pdf, page 94.) English 1 164 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany 2.17 Suspension from Work; Garden Leave In order to be able to release an employee in a legally secure manner in the context of a dismissal, two conditions must be met: Ê relevant clause in the employment contract Ê objective reason The reasons that speak in favor of a leave of absence when a notice of termination is issued include, among others: Ê Loss of trust between employer and employee Ê Protection of sensitive data and trade secrets Ê Bullying by colleagues Ê Refusal to work Ê Lack of employment opportunities All of the reasons mentioned are considered to be objective reasons that justify an exemption in principle. Often, executives, employees in customer contact or employees with access to sensitive documents and data are exempted. On the employer's side, this is intended to prevent the misuse of trade secrets or customers. (to be on garden; gardening leave) (bakermckenzie.doing-business-in-germany.pdf, page 94.) English 1 165 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Ê Can fixed-term employment contracts only be agreed in Germany if there is an objective reason? Ê In Germany, a fixed-term employment contract has been agreed. There is no objective reason. The fixed-term employment contract has a term of 30 months. Please check the legal admissibility! Ê An employer extends an employee's working day to nine hours for the next seven months. Check the legal admissibility! Ê The hourly wage for the following seven months is 11.50 euros. Check the legal admissibility! Ê A friend tells you that in Germany, employers have to pay their employees Christmas bonuses by December 24 of the year at the latest. Please comment briefly on this. Ê A friend tells you that an employer has to pay overtime pay because of the Working Hours Act (Arbeitszeitgesetz). Could you please comment on this? Ê You start your career in an insolvency law firm. Do you have a legal right to have the law firm provide you with a company car? You also want to use this company car privately. (bakermckenzie.doing-business-in-germany.pdf, pages 88 - 90.) English 1 166 Prof. Dr. Prof. h.c. Schellberg  Chapter 7: Employment 2. Working Conditions in Germany Ê You are employed as an employee in a German company. You fall ill and are on sick leave for four weeks. Your employer will not pay you a salary for these four weeks. Please check this question! Ê An employee is pregnant. What are the protection periods before and after birth? The female employee and her husband want to have more time for their child in the first years of their child's life. What are the benefits of parental leave? Is parental leave only granted to the mother? Ê In Great Britain, the interesting employment law term "Garden Leave" (also known as gardening leave) is well known. What does this mean? Ê As a senior executive, your employer wants to release you from your job with full pay. Under what conditions is this possible? (bakermckenzie.doing-business-in-germany.pdf, page 93.) English 1 167 Prof. Dr. Prof. h.c. Schellberg