News

Reset
60 posts found

German member firm, KELLER MENZ, identified as a top employment law firm in Germany

The employment practice at German member firm KELLER MENZ has once again been identified as a recommended firm for providing employment law services to corporate clients. They have been included in a list of the 68 top firms in all…
Posted on 1st June, 2023
 | 

Keller Menz – Employment law for companies.

We are proud to announce that KELLER MENZ, CELIA Alliance's German member firm, is listed in the "German Commercial Law Firms 2022/2023" JUVE handbook for another year. JUVE publications have been issued annually since 1998 to provide commercial law firms…
Posted on 8th November, 2022
 | 

Mobile Working, Home Office, or Teleworking, are they under the same regulations?

Under German law, employers need to ensure they use decisive wording in agreements for mobile working, home office or teleworking to avoid possible pitfalls. Although these terms are often used as synonyms, under German law, they may have different legal…
Posted on 20th September, 2022
 | 

Employers to ensure written employment particulars are given of face fines of up to EUR 2,000 per employee

In June 2022, a new law is expected to be passed in Germany implementing the EU Directive 2019/1152 into national law. The new law supplements existing German law which already provides for the right of employees to a written record…
Posted on 14th June, 2022
 | 

Keller Menz excels with presence in law firm rankings for their employment law practice in 2020

In June 2020, Keller Menz was named one of four "preferred law firms" in Munich (Kanzleimonitor, p. 141). Thomas Keller was named as a recommended lawyer based on recommendations by companies and in-house lawyers. In July 2020, Brand eins labelled…
Posted on 4th January, 2021
 | 

Germany: A year on: a review of the new laws on the expiry of paid annual leave entitlements

In February 2019, the BAG (German Federal Labour Court) decided to change the law on the expiry of paid annual leave entitlements.  What are the changes?  Previously to the Federal Labour Court’s decision, untaken paid annual leave expired at the…
Posted on 1st January, 2020
 | 

Germany: New legal provisions to apply for A1 certificate

An A1 certificate for a posted employee can only be applied for electronically in Germany. An A1 form determines which social security legislation applies to the holder of the certificate. The online process is now available, according to § 106…
Posted on 8th January, 2019
 | 

New disclosure rules to ensure equal pay in Germany

A new law (EntgTranspG) to ensure equal pay of male and female employees comes into effect in Germany this summer (the “Act”). This will require employers, upon request by an employee, to disclose anonymised salary details of other employees working…
Posted on 7th January, 2017
 | 

Workforce planning in Germany: new rules for temporary agency work

On 1 April 2017, a new law governing temporary agency work came into effect in Germany (the “Act”).  Businesses operating in Germany, whether suppliers or end users of agency workers, must take note of the new rules under the Act…
Posted on 4th January, 2017
 | 

Increase in German Minimum Wage

Effective from 1 January 2017, the minimum wage in Germany will increase from €8.50 to €8.84per hour. Currently, there are some exceptions for collective bargaining agreements.  From 1 January 2017 collective bargaining agreements have to provide a minimum wage of…
Posted on 10th January, 2016
 | 

Validity of Exclusion Clauses in Employment Contracts

It is common practice for German employment contracts to have a mutual clause that excludes claims by either party if they have not been declared by written notice within a three month period.  These clauses usually require the notice to…
Posted on 10th January, 2016
 | 

New German Social Security Contribution Caps for 2017

The German Federal Cabinet has published the draft of a regulation concerning the social security contributions of 2017.  As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the income in…
Posted on 10th January, 2016
 | 

Employers no longer obliged to offer positions in overseas branches for forced redundancies

Under German law, redundancy dismissals must be based on compelling operational reasons and, in order to avoid wrongful termination of employment, the employer must prove that the position now being made redundant permanently ceases to exist and offer the employee…
Posted on 4th January, 2016
 | 

What part should return to work assessments play in the dismissal of sick employees?

In general, where employees are unfit for work for more than six consecutive weeks or on an aggregate basis within a year due to health reasons, it is vital that the employer conduct a return to work assessment known in…
Posted on 4th January, 2016
 | 

New social security contributions

The German Federal Cabinet has published the draft of a regulation concerning the social security contribution ceilings of 2016. As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the income…
Posted on 10th January, 2015
 | 

Germany: employer fined for spying on sick employee

A German employer who hired a private detective to check whether a sick employee was really unfit for work has been fined for violating the employee’s human rights.  After the ruling by the German Federal Labour Court, the employee was…
Posted on 3rd January, 2015
 | 

New ‘Frauenquote’ introduces targets for senior women in Germany

In December 2014, the German government introduced legislation to increase the number of women in senior positions in Germany’s leading organisations.  From 2016, at least 30% of all supervisory board positions in Germany’s largest companies must be held by women.…
Posted on 1st January, 2015
 | 

Wife inherits dead husband’s holiday pay

In a decision that could affect all EU countries, the European Court of Justice (ECJ) has ruled that a German company was acting against EU law when it refused to pay the widow of a former employee an allowance in…
Posted on 10th January, 2014
 | 

German Social Security Rates for 2015

The expected 2015 social security rates for Germany are set out below.  These are subject to confirmation by the Federal Cabinet and Council in October 2014. New rates for 2015 Area of social security Contribution threshold 2015* Pension and unemployment…
Posted on 9th January, 2014
 | 

Minimum wage to be introduced in Germany from 2015

A minimum wage of € 8.50 gross per hour will be introduced in Germany for the first time from January 2015. Collective agreements with a lower minimum wage can still remain in force until December 2016. The minimum wage will…
Posted on 7th January, 2014
 | 

Temporary workers must be counted for unfair dismissal protection

The rules on protection against unfair dismissal under the Employment Protection Act ("Kuendigungsschutzgesetz") are only applicable in establishments, if more than ten employees are employed on a regular basis ('regelmäßig'). The Federal Labour Court ruled earlier this year that temporary…
Posted on 9th January, 2013
 | 

Retirement Clauses in Collective Agreements and Employment Contracts are lawful

The Federal Labour Court has ruled that Collective Agreements can state that an employment contract will terminate on the regular retirement date without the employer being exposed to a claim of age discrimination. Many employment contracts contain a clause stating…
Posted on 5th January, 2013
 | 

Redundancy, selection and age discrimination

When selecting employees for redundancy selection a difference in treatment due to age may be justified by a legitimate aim. According to the Protection from Unfair Dismissal Act (“KSchG”), employers have to consider social criteria, such as seniority, age, obligations…
Posted on 2nd January, 2012
 | 

Entitlement to a bonus following notice of termination

The entitlement to a bonus may be made dependent on an employee not being under notice at the time of payment, irrespective of who terminated the employment. The plaintiff claimed payment of a Christmas bonus, which should have been paid…
Posted on 2nd January, 2012
 | 

Carried forward holiday and new restrictions for the long-term sick

The rules on carrying forward holidays and a new decision limiting the carry forward period to 15 months for long-term sick employees. In principle, an employee’s entitlement to holiday is lost at the end of the year if it has…
Posted on 1st January, 2012
 | 

Proposed increase in Social Insurance contribution ceilings for 2012

On September 8th 2011, the Federal Ministry of Labour presented the draft bill for the Social Insurance operands regulation for 2012.  The draft intends an increase for many contribution assessment ceilings as wage inflation amounted to approx. 2% in the…
Posted on 10th January, 2011
 | 

Tax treatment of board directors – office staff, office space and cars

The regional finance office of Magdeburg submitted an order on how to deal with additional benefits provided to members of the supervisory board for tax purposes. Occasionally, larger companies provide office space, office staff and company cars to their board…
Posted on 10th January, 2011
 | 

Transfer of part of an undertaking to an affiliated company abroad prevented fair redundancy dismissal

Reliance cannot be placed on a redundancy dismissal by reason of closure of workplace where the part of the undertaking in which the employee works is transferred. If an employment contract rules that German law is applicable, the question whether…
Posted on 10th January, 2011
 | 

Additional Premiums for work on Public Holidays such as Easter Sunday and Whit Sunday

If a collective agreement allows for additional premiums for work on public holidays, this additional premium regularly only has to be paid if those public holidays are statutory. In this case (See Resources below), the claimant was working shifts for…
Posted on 10th January, 2011
 | 

Monetary claims for compensation for untaken holiday can be validly excluded

Court holds that a monetary claim for compensation can be excluded by contractual provision. In virtue of sec. 7 par. 4 BUrlG (Bundesurlaubsgesetz, Holidays Act) the employee is entitled to compensation for holidays he was not able to take because…
Posted on 10th January, 2011
 | 

Federal government and states consider extension of tax free pension contribution to posted workers

Contribution to a home country pension scheme may attract relief in future. According to § 3 Nr. 63 EStG (German Income Tax Law), contributions to pension funds, pension schemes and insurance companies in the EU – as well as possibly…
Posted on 7th January, 2011
 | 

Changes in the tax treatment of ‘extra payments’ to the purchase expenses of a company car

Under the old law extra payments by employees to the purchase expenses of a company car, which could also be used privately, could only be set off in the year of payment against non-cash benefits, to be assessed for private…
Posted on 7th January, 2011
 | 

Double taxation of commuters to luxembourg

Taxation of commuters to Luxembourg The rules governing the taxation of commuters to Luxembourg have changed. On the 14th June 2011 the German Federal Ministry of Finance published the mutual agreement of 26th May 2011 between Germany and the Grand…
Posted on 7th January, 2011
 | 

Changes to benefit in kind charges for home to work company car travel

The German Federal Ministry of Finance has commented on the treatment of company cars provided for commuting between home and the employee’s regular place of work with regard to wage tax. Background While the benefit in kind charge for the…
Posted on 7th January, 2011
 | 

When is the notice of termination of employment effectively received by the employee?

Notice of the termination of the employment relationship does not take effect until its effective delivery to the employee.For an employee to be deemed to have received notice it is sufficient that the notice of termination reaches the employee’s “sphere…
Posted on 7th January, 2011
 | 

Employees may not claim a deduction for payments under car-hire contracts

The German Federal Finance Court has ruled deductions from income for travelling to and from work are limited to the published rates based on distance travelled. The employee claimed that expenses for car leasing costs could be claimed as this…
Posted on 4th January, 2011
 | 

Agency workers providing services to more than one end-user client to benefit from additional subsistence deductions

The German Federal Finance Court has ruled that, typically, agency workers have no regular place of work in cases where the worker performs services for several different end-user clients of his employment agency employer.  The consequence of this decision is…
Posted on 4th January, 2011
 | 

Working in different EU countries can create pension entitlement in multiple states

Those working and making social security contributions in multiple EU states should take advantage of additional pension entitlements created in the home and host states. For many employees working in different EU countries for certain periods has become quite common;…
Posted on 4th January, 2011
 | 

International travel expenses deduction held at 2010 level for 2011

The Federal Ministry of Finance has announced that there will be no reassessment of flat rate amounts for expenses for travelling abroad until 01.01.2012. Under German tax law published per diem rates allow deductions from income.  The rates vary depending…
Posted on 4th January, 2011
 | 

Constitutional challenge to time limit for tax deductible subsistence expenses fails

The German Federal Finance Court confirms that deductions for meal allowances is limited to 3 months. Where employees are working away from their usual place of work, for example at a client’s premises or if they are on secondment to…
Posted on 4th January, 2011
 | 

Germany: German social security contributions for 2011

First draft regulations provide for lower thresholds and higher contributions. Income Limit for the assessment of Contributions for 2011 On 3rd September 2010, the Ministry of Employment and Social Affairs submitted the first draft of a regulation for decisive operands…
Posted on 12th January, 2010
 | 

Germany: Parental leave periods do not count towards company pension payments

The decision of the Federal Labour Court is sufficient not only for pension payments but also other entitlements during parental leave. The decision, made earlier this year, related to an employer-employee dispute over whether parental leave should impact pension payments. …
Posted on 12th January, 2010
 | 

Germany: Expenses claim for temporarily posted employees

An income tax information brief issued by the Rhineland Regional Finance Office has clarified the tax implications for employers posting their employees temporarily to an affiliated company. The guidance highlighted the differing tax positions related to two specific types of…
Posted on 12th January, 2010
 | 

Germany: New wage tax bulletin from Ministry of Finance for tax deductions in 2010

The bulletin of the Ministry of Finance concerns wage tax class combination and new "Faktorverfahren" for wage tax deductions for the year 2010 In Germany, for income tax purposes, there are six wage “classes”. Every employee will have a tax…
Posted on 3rd January, 2010
 | 

Germany: Tax exemption for ‘non standard’ working hours is restricted

The tax exemption available for additional amounts paid to an employee for working at night-time, Sundays and during public holidays will not apply if the hourly remuneration of the employee is the same, regardless of the day or hour Background…
Posted on 3rd January, 2010
 | 

Germany: Extension of short-time compensation scheme in 2010

Due to the financial crisis, many German of companies have used this scheme as a means to avoid redundancies Under the scheme, pro-rated employment benefits are paid by the government, as compensation for loss of income, to workers whose hours…
Posted on 3rd January, 2010
 | 

Germany: Travel costs – welcome new rule on mixed business/non-business expenses

Clarification of treatment of travel costs with both a business and private element Travel costs with business and private elements may be split into deductible business costs and non- deductible private costs, provided that both elements of the costs can…
Posted on 3rd January, 2010
 | 

Germany: Payment for reduction in working hours similar to redundancy payment

A payment by an employer to an employee as compensation for a reduction in the employee’s weekly working hours, for an indefinite period, is classed as a redundancy payment and therefore afforded favourable tax treatment A change of weekly working…
Posted on 3rd January, 2010
 | 

Germany: No entitlement to statutory severance payment where employee files a claim for unfair dismissal

Where an employer offers a severance payment that is to be paid in certain circumstances where an employee refrains from filing a claim for unfair dismissal, it is not then obliged to pay the severance payment if the employee fails…
Posted on 3rd January, 2010
 | 

Germany: Tax treatment of costs incurred by employer for vocational training of employees – reversal of previous position

Costs of training met by an employee will not form taxable salary for an employee provided certain conditions are met. Where an employer pays the costs of vocational training for an employee, this does not constitute taxable salary of the…
Posted on 10th January, 2009
 | 

Germany: Wage tax: Glasses may be provided tax free, subject to conditions

The costs of employees' special glasses will be free of income tax and social security where: a specialist carries out the eye examination; the result of the examination is that the special glasses are required by the employee, such that…
Posted on 10th January, 2009
 | 

Germany: New limits on variable pay arrangements

Recent case law decisions mean it is now necessary to revise clauses in employment contracts which provide that certain payments are discretionary or may be revoked in certain circumstances.  The nature of a discretionary payment means that the employee is…
Posted on 10th January, 2009
 | 

Germany: Distinction between capital gains tax and wage tax treatment clarified

Clarity on when employees may escape employment income taxation in respect of gains (and dividends) on shares and other capital held in the employer’s business. If an employee acquires shares or other capital investment in his employer’s business in connection…
Posted on 10th January, 2009
 | 

Germany: Smoke-free workplaces introduced…but not necessarily in restaurants

Employees are entitled to a smoke-free workplace in restaurants and casinos.....the entrepreneurial freedom exception to the workplace ban does not apply. Facts An employee worked as head of roulette tables in a casino, which did not have a separate bar…
Posted on 10th January, 2009
 | 

Germany: Obligation to pay full social security contributions for trainees

Reduced rate of social security contributions for the lower paid does not apply to trainees. Lower social security rates apply to the employer and employee in respect of low paid employees "Geringverdiener" (§ 8 SGB IV) and progress according to…
Posted on 10th January, 2009
 | 

Germany: Agreed position on the taxation of redundancy payments as between Germany and Belgium, the Netherlands and Switzerland not valid

The German court rejects the agreement made between national fiscal authorities as non-binding thereby abandoning the previously understood tax treatment. The German Federal Finance Court has ruled that redundancy payments received by the employee after termination of the employment contract…
Posted on 10th January, 2009
 | 

Germany: Travel to work using a company car by home workers may be a taxable benefit

On 7 May 2009, the Regional Finance Office Frankfurt confirmed its position on the following questions:- when is a home office to be regarded as the regular working place of an employee; and what consequences result from this finding where…
Posted on 10th January, 2009
 | 

Germany: New legislation on Executive compensation in German public companies

New legislation on the amount and structure of pay (including options), new rights for the court to claw back monies paid, the passing of risk to executives, and new corporate governance on remuneration. Due to the current economic crisis and…
Posted on 10th January, 2009
 | 

Germany: Employee has to reclaim prior year tax paid in error by their employer by filing a tax return

Ordinarily German employees do not submit tax returns in respect of employment income and it had been hoped that employers could correct their tax errors through payroll. The German Federal Finance Court has ruled that where an employer has wrongly…
Posted on 10th January, 2009
 | 

Germany: Social security and gardening leave- new rules from 1 July 2009

Where an employment relationship comes to an end, the employer and employee often agree that the employee need not provide his services until the end of the notice period, although the employer is still obliged to pay the contractual remuneration…
Posted on 10th January, 2009
 |