Germany: Employee Benefits & Compensation

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.

Germany's regular works council elections have concluded, bringing new members into established bodies. Understanding the fundamental aspects of works council operations—from release from work duties and training requirements to remuneration rules and the transition of former members—is essential for employers seeking to establish effective cooperation and avoid legal pitfalls.

The German Federal Labor Court has issued critical rulings on occupational pensions that reshape how employers must interpret salary conversion arrangements and pension plan eligibility. These decisions clarify when collective bargaining agreements can validly exclude mandatory employer subsidies and establish that apprentices may accrue pension entitlements under certain plan rules.

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.

The escalation in the Middle East also affects day‑to‑day HR management for employers with operations in Germany. Flight restrictions, supply shortages, and rapidly rising fuel prices raise the question...

Monday morning, 7:15 a.m. A company vehicle pulls out of the parking lot. The destination is a conference hotel about 90 minutes away for a training session. One employee is driving, another is answering work emails, and a third is relaxing in the back seat.

Unternehmen führen betriebliche Altersversorgung („bAV") häufig mittelbar über eine Direktversicherung als externen Versorgungsträger durch.

Die Krankenstände im privaten und öffentlichen Sektor befinden sich auf einem historischen Rekordniveau. Für viele Unternehmen bedeutet das zunächst einmal Unsicherheit – vor allem im Hinblick auf die wirtschaftlichen Folgen

Stellt das Arbeitsgericht im Kündigungsschutzprozess fest, dass die vom Arbeitgeber ausgesprochene Kündigung unwirksam ist und besteht deshalb nach der Entscheidung des Gerichts das Arbeitsverhältnis fort,...