Working from home is not a less severe measure compared to a termination notice that changes the place of work

An employee whose place of work is to be changed by means of a change of employment notice does not have to be offered the option of working from home as a milder alternative. This was determined by the Baden-Württemberg Higher Labor Court (LAG BW) in its ruling dated November 4, 2024. Facts of the...

Reading time: 5 min

Employment law

Forfeiture of virtual option rights after termination of employment

In its decision dated March 19, 2025 (case no. 10 AZR 67/24), the German Federal Labor Court delivered a landmark ruling regarding  the forfeiture of virtual stock option rights after termination of employment. The ruling specifically addresses Employee Stock Option Programs (ESOPs) that included contractual clauses stipulating that virtual options would lapse when employment ends.....

Reading time: 6 min

Employment law

No executive status despite authorization for ‘hire and fire’

The director of a retail store is not to be regarded as a senior executive within the meaning of Section 5 (3) of the German Works Constitution Act (BetrVG), even if she is authorized to hire and fire staff independently. This was decided by the Regional Labor Court of Hessen (‘LAG Hessen’) in a ruling...

Reading time: 5 min

Employment law

Labor Law: Threats and disturbance of peace at the workplace: ordinary dismissal justified?

If an employee spreads threats against ver.di via a private Facebook group comprising 1,000 colleagues, this justifies the ordinary termination of his employment relationship. This was decided by the Berlin Labor Court in a ruling dated October 7, 2024 (Ref. 59 Ca 8733/24 and 59 Ca 11420/24). Facts of the case The judgment of the...

Reading time: 4 min

Employment law

Labor Law: Temporary employment – restriction of the group privilege

According to a decision by the Federal Labor Court (Bundesarbeitsgericht, “BAG”), an impermissible temporary assignment of employees may also exist if an employee has been assigned to another group company for several years since the beginning of the employment relationship. Facts of the case The ruling of the BAG of November 12, 2024 (9 AZR...

Reading time: 4 min

Employment law

Labor Law: Downgrading the remuneration of a released works council member

The Baden-Württemberg Regional Labor Court (LAG) follows the case law of the Federal Labor Court (BAG), according to which a direct claim of a released works council member can arise from Section 78 sentence 2 of the Works Constitution Act (“BetrVG”) in conjunction with Section 611a (2) of the German Civil Code (“BGB”) if the...

Reading time: 6 min

Employment law

Requirements for opening legal recourse to the labor courts for managing directors of limited liability companies

The Regional Labor Court of Mecklenburg-Western Pomerania (“LAG”) clarified in its decision of May 15, 2024 – 3 Ta 21/24 that a dismissal from the position of managing director does not automatically turn the underlying contractual relationship into an employment relationship. Facts of the case The plaintiff was entered in the commercial register as a...

Reading time: 4 min

Employment law

Works Council election at Porsche invalid

The Baden-Württemberg Regional Labor Court (“LAG”) has confirmed the invalidity of the works council election at the Porsche car manufacturer’s Zuffenhausen site. The reason for this was that employees at the Leipzig site had also voted (decision of March 19, 2024 – 15 TaBV 2/23). Facts of the case The decision of the LAG Baden-Württemberg...

Reading time: 5 min

Employment law

Labor Law: Works council can demand equipment with tablets or notebooks

The works council can demand that the employer provide each works council member with a tablet or notebook to enable its members to participate in works council meetings via video conference, provided that the requirements of Section 30 (2) of the Works Constitution Act (BetrVG) are met, according to a decision by the Munich Higher...

Reading time: 5 min

Employment law

Labor Law: Employment relationship with a managing director is transferred to the buyer in the event of a transfer of business

If the legal relationship between a managing director and the limited liability (“GmbH”) is based on an employment relationship, this is transferred to the buyer in the event of a business transfer pursuant to Section 613a of the German Civil Code (“BGB”), in contrast to the position of an executive body. This was decided by...

Reading time: 5 min

Employment law

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