Germany: Employee Rights/ Labour Relations

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.

Germany's coalition government has proposed sweeping reforms to employment law that could fundamentally reshape fixed-term contracts, dismissal protection, co-determination rights, and sick leave reporting. The measures aim to strengthen Germany's competitiveness amid technological change, demographic pressure, and international competition, offering employers significantly expanded flexibility while tightening certain compliance 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

In Germany, strikes are a reality across nearly every sector, but not every work stoppage is lawful. When trade unions call industrial action, employers face critical questions about...

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..

As the year draws to a close, we are issuing our last Focus on Labour Law for 2025 with its usual overview of important labour court decisions of the last few months and updates on new legislation.