File #2507: "2018_Book_KeyAspectsOfGermanEmploymentAn.pdf"
Testo
1|Contents|5
1|Editors and Contributors|18
1|Abbreviations|21
1|Chapter 1 Executive Summary: German Employment and Labour Law|24
2|A. Background|24
2|B. Company Perspective|25
3|I. Legal Entities|25
3|II. Co-Determination|26
3|III. Managing Director and Management Board Member|26
3|IV. Small Business Operations|27
3|V. Companies Abroad|27
2|C. Employment Law|27
3|I. Employment Contract|27
3|II. Dismissal Protection|28
4|1. Extraordinary Termination|29
4|2. Ordinary Termination and Wrongful Dismissal Protection|29
5|a) Ordinary Termination|29
5|b) Wrongful Dismissal Protection|30
5|c) Statutory Grounds for Termination|30
5|d) Mass Dismissals|32
5|e) Modification Dismissals|32
4|3. Special Dismissal Protection|33
3|III. Minimum Wage|33
3|IV. Anti-Discrimination|34
4|1. Discrimination Criteria|34
4|2. Discriminatory Behaviour and Justified Discrimination|34
4|3. Legal Consequences|35
3|V. Employee Data Protection|35
4|1. Overview|35
4|2. The EU-U.S. Privacy Shield|36
4|3. The European General Data Protection Regulation|37
3|VI. Part-Time and Fixed-Term Employment|39
4|1. Part-Time Employment|39
4|2. Fixed-Term Employment|39
3|VII. Employee Leave Entitlements|40
3|VIII. Employee Liability|40
2|D. Labour Law|41
3|I. Works Council|41
3|II. Co-Determination Rights|42
4|1. General Principles|42
4|2. Operational Changes|42
3|III. Transfer of Business|43
4|1. Transfer of Employment Relationships|44
4|2. Employees´ Right to Information|44
4|3. Employees´ Right to Object|44
4|4. Special Termination Protection|45
4|5. Liability|45
4|6. Transfer of Business and Operational Changes of Business|45
3|IV. Collective Bargaining Agreements|46
3|V. The Principle of Tariff Unity|46
1|Part I: Employment Law|47
2|Chapter 2 Recruitment|48
3|A. Introduction|48
3|B. Recruitment Practice|48
4|I. Diversity Issues|48
4|II. Pre-Contractual Duties|49
3|C. Recruitment Process|49
4|I. Job Advertisements|49
4|II. Application Documents and Applicant Data|49
5|1. Application Documents|49
5|2. Applicant Data|50
6|a) Obligation to Delete Data|50
6|b) Aspects of Cross-Border Transfers of Applicant Data|50
4|III. The Selection Process: Vetting and Screening|51
5|1. Procuring Information from Applicants/Job Interviews|51
6|a) Asking Questions|51
6|b) Employee Questionnaires|52
6|c) Assessment Tests, Medical Examinations and Screenings|52
6|d) Compensation of Travel Expenses|52
5|2. Procuring Information from Third Parties|53
5|3. Procuring Information from the Internet|53
4|IV. Concluding Employment Contracts|53
4|V. Unsuccessful Job Applications|54
4|VI. Works Council Co-Determination Issues|54
3|D. Reference Letters|55
3|E. Key Aspects|56
2|Chapter 3 Employment Contracts and Further Legal Sources|57
3|A. Introduction|57
3|B. Employment Contracts|58
4|I. Content|58
4|II. Form|59
3|C. Further Legal Sources|59
4|I. European Union Law and International Law|59
5|1. European Union Law|59
5|2. International Law|60
4|II. Constitution and Statutory Law|60
5|1. Constitutional Law|60
5|2. Statutory Law|61
4|III. Labour Court Jurisprudence|61
4|IV. Collective Bargaining Agreements|62
4|V. Works Agreements|62
4|VI. Employer Directives and Operational Practice|63
5|1. Employer Directives|63
5|2. Operational Practice|63
4|VII. Equal Treatment Principle|63
3|D. Key Aspects|64
2|Chapter 4 Employee or Freelance Worker|65
3|A. Introduction|65
3|B. Definition Employee and Freelance Worker|66
3|C. Distinction Employees and Freelance Workers|66
3|D. Evaluation of Employment Status|66
4|I. Duty to Comply with Instructions|67
4|II. Observance of Fixed Working Hours/Working Schedules|67
4|III. Place of Work|67
4|IV. Permission to Work for Others|68
4|V. Term of Employment|68
4|VI. Tax and Social Insurance Contributions|68
4|VII. Entrepreneurial Activity|68
4|VIII. Integration/Hierarchy|69
4|IX. Form of Payment and Holiday|69
4|X. Intentions of the Parties|69
3|E. Typical Factors Indicating Employment Status|70
3|F. Codification into the Civil Code|70
3|G. Legal Consequences|71
4|I. Employment and Labour Law|71
4|II. Social Security Law|71
4|III. Tax Law|71
3|H. Status Clearance|72
3|I. Key Aspects|72
2|Chapter 5 Agency Workers|73
3|A. Introduction|73
3|B. The Law on Agency Work|74
4|I. Permission to Contract Employees to Other Companies|74
5|1. Issue and Withdrawal of the Permit|74
5|2. Agency Work Without Permit|75
4|II. Structure of the Contractual Relations|76
5|1. Contractual Relations Between Employer and Client|76
5|2. Contractual Relationship Between Employer and Agency Workers|76
4|III. Statutory Maximum Lease Period of 18 Months|76
4|IV. Labour Protection of Agency Workers|77
4|V. Health and Safety Regulations|78
5|1. Responsibility of the Client|78
5|2. Responsibility of the Contractual Employer/Agency|78
4|VI. Collective Employee Representation|78
3|C. Key Aspects|79
2|Chapter 6 Immigration|81
3|A. Introduction|81
3|B. Residence and Employment|81
4|I. EU Nationals and Equally Treated Nationals|81
5|1. Residence|81
5|2. Employment|82
4|II. Non-EU Nationals|82
5|1. Residence|82
5|2. Employment|82
5|3. Types of Residence Permits|82
6|a) Visa|82
7|aa) Competent Authorities|82
7|bb) Visa Waivers|83
7|cc) Schengen-Visa|83
7|dd) Visa Information System (VIS)|83
7|ee) National Visa|84
6|b) Restricted Residence Permit|84
7|aa) University Studies|85
7|bb) Self-Employment|85
7|cc) Dependent Employment|86
8|Qualified Employment|86
8|Blue Card|87
8|Intra Corporate Transfer|87
8|Non-Qualified Employment|88
6|c) Unrestricted Settlement Permit|89
6|d) EU Long-Term Residence Permit|89
5|4. Visa Regulation for Russian Citizens|90
5|5. Integration Act|90
4|III. Administrative Offences|90
3|C. Employment Relationships with Foreign Employees|91
4|I. Principles of Conflict of Laws|91
4|II. Social Security Insurance|91
5|1. General Principles|91
5|2. Citizens of the European Economic Area and Switzerland|92
5|3. Citizens of Other Countries|92
4|III. Tax|93
5|1. General Principles|93
5|2. Double Taxation Treaties|93
3|D. Potential Impact of the Brexit|93
3|E. Key Aspects|94
2|Chapter 7 Employee Secondments|96
3|A. Introduction|96
3|B. Cultural Awareness and the Appropriate Secondee|97
3|C. Employment Law Issues|97
4|I. Contractual Structure|97
4|II. Content of the Secondment Agreement|98
5|1. Job Description/Reporting Structure|99
5|2. Duration of the Secondment|99
5|3. Expenses for Preparatory Training|99
5|4. Remuneration|99
5|5. Annual Leave and Public Holidays|100
5|6. Travel Expenses|100
5|7. Emergencies|100
5|8. Return of the Employee|101
5|9. Other Issues|101
5|10. Governing Laws|102
3|D. Social Security|102
4|I. European Union Laws|102
4|II. Bilateral Social Security Treaties|103
4|III. Principles of ``Inward/Outward Radiation´´|104
3|E. Tax Laws|105
3|F. Key Aspects|106
2|Chapter 8 Pay and Benefits|107
3|A. Remuneration|107
4|I. Agreements|107
4|II. Remuneration for Overtime Work|108
4|III. Minimum Wage|108
4|IV. Remuneration Transparency|109
4|V. Operational Practice|109
5|1. Reservation of Voluntariness|110
5|2. Requirement of Double Written Form|110
5|3. No Possibility for Contrary Operational Practice|111
4|VI. Bonus Payments|111
5|1. Types of Bonus Payments|111
6|a) Commission|111
6|b) Gratuity|111
6|c) Profit Sharing|112
6|d) Supplemental Pay|112
5|2. Reserving Voluntariness, Revocation Rights and Reasonable Discretion|112
6|a) Reservation of Voluntariness|112
6|b) Revocation Rights|113
6|c) Reasonable Discretion|114
4|VII. Sick Pay|114
3|B. Benefits|114
4|I. Social Security Insurance Scheme|114
5|1. Overview|114
5|2. Social Security Insurance Branches|114
6|a) Pension Insurance|115
6|b) Unemployment Insurance|115
6|c) Health Insurance|116
6|d) Nursing Insurance|116
6|e) Accident Insurance|116
4|II. Social Security Insurance Contributions|117
5|1. Obligations of the Employer|117
5|2. Obligations of the Employee|117
5|3. Composition and Calculation of Contribution Payments|117
5|4. Employer´s Civil and Criminal Liability|118
5|5. Employer´s Claims Against Employees|119
3|C. Example Calculation for Social Security Insurance Contributions|119
3|D. General Tax Law Aspects|120
3|E. Key Aspects|120
2|Chapter 9 Working Hours, Holidays and Health and Safety|122
3|A. Introduction|122
3|B. Working Hours|123
4|I. Working Hours Act|123
5|1. Purpose and Applicability|123
5|2. Working Hours|123
5|3. Rest Breaks|123
5|4. Rest Period|124
5|5. Records|124
4|II. Collective Bargaining Agreements|124
4|III. The Role of the Works Council|124
3|C. Holidays|125
4|I. Applicability and Amount|125
4|II. No Waivers|126
4|III. Obligations of the Employee|126
4|IV. Holidays in Case of Termination|126
4|V. Public Holidays|127
3|D. Health and Safety|127
4|I. Protection Regulations|128
4|II. Health Examinations|128
4|III. Employee Duties|128
4|IV. The Role of the Works Council|129
3|E. Key Aspects|129
2|Chapter 10 Partial Retirement|131
3|A. Introduction|131
3|B. Prerequisites of Partial Retirement|131
4|I. Qualifying Employees|131
4|II. Agreement on Partial Retirement|132
4|III. Reduction of Working Hours|132
3|C. Models of Partial Retirement|133
4|I. Continuity Model|133
4|II. Block Model|133
3|D. Special Issues of the Block Model|133
4|I. Duration|133
4|II. Remuneration|134
4|III. Holiday|134
4|IV. Sickness|134
4|V. Termination|135
4|VI. Malfunction|135
4|VII. Insolvency Insurance|135
3|E. Payment Obligations|136
4|I. Increase Amounts to the Salary|136
4|II. Additional Contributions to the Statutory Pension Insurance|137
4|III. Tax Privileges|137
3|F. Key Aspects|138
2|Chapter 11 Diversity and Discrimination|139
3|A. Introduction|139
3|B. General Equal Treatment Act|140
4|I. Grounds of Discrimination|140
5|1. Race and Ethnic Origin|140
5|2. Religion or Belief|140
5|3. Gender|141
5|4. Disability|141
5|5. Age|141
5|6. Sexual Identity|141
4|II. Factual Scope of Application|142
4|III. Protected Individuals|142
4|IV. Discriminatory Behaviour|143
5|1. Direct Discrimination|143
5|2. Indirect Discrimination|144
5|3. Harassment|144
5|4. Sexual Harassment|144
5|5. Instructions to Discriminate|144
4|V. Justified Discrimination|145
4|VI. Rights of Persons Concerned|145
5|1. Voidness of Discriminatory Act|146
5|2. Compensation for Damages|146
5|3. Compensation|146
5|4. Right to Complain|146
5|5. Right to Refuse Performance|147
5|6. No Claim to Employment or Promotion|147
5|7. Injunctive Relief|147
4|VII. Burden of Proof|147
4|VIII. Practical Consequences|148
5|1. Prevention|148
5|2. Investigations|148
5|3. Sanction|148
3|C. Key Aspects|149
2|Chapter 12 Data Protection and Monitoring|150
3|A. The Employee´s Right to Privacy|150
3|B. Lawfulness of Utilising Personal Data of Employees|151
4|I. Statutory Provisions|151
4|II. Works Agreement|151
4|III. Consent of the Employee|152
3|C. Data Uses With Relevance for the Employment|153
4|I. Monitoring of Employees|153
5|1. Surveillance of Premises Open to the Public|153
5|2. Surveillance of Premises with Restricted Access|153
5|3. Data Processing Steps in Order to Reveal Criminal Conduct|154
5|4. Involvement of the Works Council|155
4|II. Internet/Email Use by Employees in Workplace|155
4|III. Sharing Employee Information Within Groups of Companies|156
4|IV. Outsourcing Employee Data Processing Operations|156
4|V. Transfer of Employee Data Outside the EU|157
5|1. General Requirements for the Transfer of Employee Data Outside the EU|157
5|2. Transfer of Employee Data to the USA|158
3|D. Appointment of a Data Protection Officer|160
3|E. The General Data Protection Regulation|160
4|I. Key Facts|160
4|II. Territorial Scope|161
4|III. Lawfulness of Utilising Personal Data of Employees Under the GDPR|162
4|IV. Fair Processing and Individual Rights|164
4|V. Principle of Accountability|164
4|VI. Appointment of a Data Protection Officer Under the GDPR|165
4|VII. Transfer of Data to Third Countries Under the GDPR|165
3|F. Key Aspects|166
2|Chapter 13 Employee Inventions and Copyrights|167
3|A. Introduction|167
3|B. Employee Inventions and Technical Improvement Proposals|168
4|I. General|168
4|II. Scope of Personal Applicability|168
4|III. Employee Inventions, Free Inventions and Technical Improvement Proposals|168
4|IV. Rights and Obligations of the Employer and the Employee|169
5|1. Notification|169
5|2. Claiming of the Invention by the Employer|170
5|3. Consequences of the Employer Claiming the Invention|170
4|V. Remuneration|171
5|1. Extent of the Obligation to Compensate the Employee|171
5|2. Calculation of the Remuneration|171
6|a) Procedure|171
6|b) Calculation Method|172
6|c) Determining the Value of an Employee Invention|172
6|d) Contribution of the Employee|172
5|3. Litigation About the Compensation|173
4|VI. Abandonment of the Rights|173
3|C. Copyrights|173
3|D. Key Aspects|174
2|Chapter 14 Non-Competition Clauses|175
3|A. Introduction|175
3|B. Post-Contractual Non-Competition Clauses|176
4|I. Employees|176
5|1. Form|176
5|2. Compensation Payment During Non-Competition Period|176
5|3. Calculation and Payment of the Compensation|177
5|4. Further Requirements: Legitimate Interest of Employer: Sector, Geographical Area and Duration|178
5|5. Set-Off of Employee´s Earnings Against Compensation Payment|178
5|6. Rights of the Employer in the Event of Breach|179
5|7. Choice of Employee|179
5|8. Waiver by the Employer|179
4|II. Legal Representatives|180
5|1. Legitimate Interest of the Company|180
5|2. Geographical Scope of the Non-Competition Clause|180
5|3. Term of the Non-Competition Clause|180
5|4. Compensation Payment|181
5|5. Set-Off of Earnings of the Legal Representative During the Period of the Non-Competition Clause Against Compensation Payment|181
5|6. Waiver|181
5|7. Legal Representative´s Choice|181
5|8. Breach of Non-Competition Clause: Options of the Company|182
3|C. Contractual Non-Competition Obligation During Employment|182
4|I. Employees|182
5|1. Scope of Prohibition|182
5|2. Steps Available to the Employer in the Event of Breach|182
4|II. Legal Representatives|183
5|1. Scope of Prohibition|183
5|2. Steps Available to the Company in the Event of Breach by the Executive|183
3|D. Key Aspects|183
2|Chapter 15Termination of Employment|185
3|A. Introduction|185
3|B. Notice Period|186
3|C. Termination Notice|187
3|D. Service of the Termination Notice|187
3|E. General Termination Protection by Social Justification|188
4|I. Scope of Application|188
5|1. Size of the Business: Small Business Exemption|188
5|2. Term of Employment|189
5|3. Reasons for Termination|189
4|II. Reasons for Termination|189
5|1. Person-Related Terminations|190
6|a) Illness|190
7|aa) Long Term Illness|190
7|bb) Frequent Short Term Absences|191
6|b) Alcohol or Drug Addiction|191
6|c) Work Permit|191
5|2. Conduct-Related Termination|191
6|a) Typical Issues of Misconduct|192
7|aa) Alcohol or Drug Use (Not Addicted)|192
7|bb) Unexcused Absence|192
7|cc) Misconduct Off-Work|193
7|dd) Union Activities|193
7|ee) Poor Performance|193
7|ff) Inappropriate Conduct Towards Employer or Co-Workers|193
6|b) Warning|193
5|3. Terminations for Operational Reasons|194
6|a) Compelling Operational Reasons|194
7|aa) Operational Shutdowns (Fully or in Part)|195
7|bb) Downturn in Sales and Orders|195
7|cc) Outsourcing|196
6|b) The Social Selection Process|196
7|aa) Criteria for Social Selection|196
7|bb) Employees to Be Included in the Social Selection|197
7|cc) Exemptions from the Social Selection|197
7|dd) Social Selection Step by Step|198
7|ee) List of Names in Restructuring Measures|198
6|c) No Open Job Positions|198
6|d) Mass Dismissal|199
3|F. Severance Payments|199
3|G. Termination with the Option of Altered Conditions of Employment/Modification Dismissal|200
3|H. Special Termination Protection|200
4|I. Special Termination Protection for Pregnant Employees and Mothers After Childbirth|201
4|II. Special Termination Protection for Employees on Parental Leave|201
4|III. Special Termination Protection for Employees Who Take Care of Relatives|202
4|IV. Special Termination Protection for Severely Disabled Persons|202
4|V. Special Termination Protection for Members of the Works Council|202
3|I. Works Council Consultation Prior to Termination|203
3|J. Summary Dismissal|204
4|I. Good Cause|204
4|II. Two Week Deadline|205
4|III. Suspicion of a Severe Breach of Contractual Duty or Criminal Offence|205
3|K. Wrongful Dismissal Claims|205
3|L. Termination Agreements|206
3|M. Key Aspects|206
2|Chapter 16 Family Friendly Rights|208
3|A. Introduction|208
3|B. Statutory Family Friendly Rights|209
4|I. Maternity Protection|209
5|1. Special Protection Against Dismissals|209
6|a) Term of the Special Protection|209
6|b) Scope of Protection|210
6|c) Employer´s Knowledge of Employee´s Pregnancy|210
6|d) Moral Damages|211
5|2. Other Protection Rights of Pregnant Employees|211
6|a) Prohibition from Work Prior to Childbirth|212
6|b) Prohibition from Work After Childbirth|212
6|c) Alternative Work or Temporary Release from Work|212
6|d) Remuneration During Maternity Protection|214
7|aa) Remuneration During Suspension from Work|214
7|bb) Maternity Allowance During Protection Periods|214
4|II. Parental Leave|215
5|1. How to Qualify for Parental Leave|215
6|a) Scope and Prerequisites|215
6|b) Maternity Protection and Parental Leave|216
6|c) Part-Time Work During Parental Leave|216
6|d) Several Children and Multiple Births|216
6|e) Parental Leave and Unused Holidays|217
5|2. Special Dismissal Protection|217
5|3. Parental Benefits|218
6|a) Parental Allowance|218
6|b) Care Allowance|219
4|III. Nursing Care|219
5|1. Applicability|219
5|2. Special Dismissal Protection|220
6|a) Short-Term Release from Work|220
6|b) Nursing Care Leave|220
6|c) Family Nursing Care|221
3|C. Key Aspects|221
2|Chapter 17 Managing Directors and Management Board Members|223
3|A. Introduction|223
3|B. Managing Directors|224
4|I. Appointment|224
5|1. Qualification for the Position as Managing Director|224
5|2. Service Agreement|225
4|II. Representation of the Company|225
5|1. The Managing Directors|225
5|2. Publication of Representation Rights|225
5|3. Limitation of the Authority of Managing Directors|225
4|III. Internal Management Structure|226
4|IV. Summary of Main Duties and Responsibilities|226
5|1. Diligent Management|226
6|a) Liability for Incorrect Statements|227
6|b) Liability to Shareholders|227
6|c) Liability in Case of Liquidation of the Company|227
6|d) Duty to Inform Shareholders|227
6|e) Commencing Insolvency Proceedings|228
5|2. Special Responsibilities Regarding the Preparation of Annual Accounts, the Payment of Taxes and Social Insurance Contributi...|228
6|a) Annual Accounts|228
6|b) Compliance with Tax Laws|228
6|c) Payment of Social Insurance|228
6|d) Liability for Damages|229
6|e) Compliance with Instructions of Shareholders|229
4|V. Removal and Resignation|229
5|1. Removal by the Shareholders|229
5|2. Resignation|230
5|3. Service Agreement|230
4|VI. Personal Liability|231
4|VII. Application of Employment Laws|231
3|C. Management Board Members|232
4|I. Appointment|232
5|1. Supervisory Board Resolution|232
5|2. Term|232
5|3. Deputies|233
5|4. Chairmen and Spokesmen|233
5|5. Service Agreement|233
5|6. Qualification for the Position as Management Board Member|233
4|II. Representation of the Company|234
4|III. Internal Management Structure|234
4|IV. Duties and Responsibilities|234
5|1. Duties and Responsibilities of Management Board Members|234
5|2. Violation of Duties|234
4|V. Removal and Resignation|235
5|1. Removal by Supervisory Board|235
5|2. Resignation|235
5|3. Service Agreement|236
4|VI. Application of Employment Law|236
3|D. Key Aspects|236
2|Chapter 18 Compliance Investigations|238
3|A. Introduction|238
3|B. Process of Investigation|239
4|I. Start of Investigation|239
4|II. Compliance Team|240
4|III. Gathering the Facts|240
5|1. Collection and Screening of Data|240
6|a) Hold Notice|240
6|b) Data Protection Laws|241
6|c) Documentation|241
6|d) Works Council Participation|242
5|2. Interview of Suspected Employees|242
6|a) Legal Outline|242
6|b) Admissible Questions|242
6|c) Works Council Participation|243
3|C. Disciplinary Consequences|244
4|I. Dismissal|244
5|1. Ordinary Dismissal|244
5|2. Dismissal with Immediate Effect|245
4|II. Formal Warning|246
4|III. Assignment to Another Position|246
4|IV. Release From Work With Full Pay|247
3|D. Criminal and Other Consequences|247
3|E. Foreign Investigations|247
3|F. Preventive Measures|248
4|I. Code of Conduct: Tone of the Top|248
4|II. Works Agreement About Compliance Investigations|248
3|G. Corporate Whistleblowing Programmes|248
4|I. Legal Outline|249
4|II. Conditions of the Programme|249
4|III. Co-Determination and Data Protection|250
3|H. Key Aspects|250
1|Part II: Labour Law|251
2|Chapter 19 Unions and Collective Bargaining|252
3|A. Coalitions|252
4|I. Background|252
4|II. Definition of the Term ``Coalition´´|252
4|III. Freedom of Association|253
4|IV. Employers´ Associations and Trade Unions|253
5|1. Employers´ Associations|253
5|2. Trade Unions|254
4|V. Coalition Rights in Companies|255
3|B. Collective Bargaining|255
4|I. Background|255
4|II. Forms of Collective Bargaining Agreements|256
5|1. Collective Association Agreement|256
5|2. Collective Company Agreements|256
4|III. Preconditions for Collective Bargaining Agreements|256
5|1. Written Form|256
5|2. Capacity for Collective Bargaining|256
5|3. Competence for Collective Bargaining|257
4|IV. Scope of Application|257
4|V. Effect of Collective Bargaining Agreements|257
5|1. Contractual Effect|257
5|2. Statutory Effect|258
6|a) Priority Over Contractual Terms|258
6|b) Waiver, Cut-Off Periods|259
4|VI. Binding Effect of Collective Bargaining Agreements|259
5|1. Immediate Application|259
5|2. Contractual Application|260
6|a) Jurisdiction of the Federal Labour Court|261
6|b) Consequences of the Jurisdiction|261
5|3. General Binding Effect|262
5|4. Operational Practice|262
4|VII. Termination of Collective Bargaining Agreements|262
4|VIII. Post-Termination Effects|263
4|IX. Concurrency and the Principle of Tariff Unity|263
3|C. Key Aspects|264
2|Chapter 20 Labour Conflicts|266
3|A. Introduction|266
3|B. Labour Conflict Practice|267
4|I. Principle of Parity|267
4|II. Employees´ Instruments|267
5|1. Strike|267
6|a) Formal Requirements|267
6|b) Purposeful Action|268
6|c) Relative Peace Obligation|268
6|d) Principle of Proportionality|268
6|e) Overview of Days Not Worked Due to Labour Conflicts Worldwide|269
5|2. Further Instruments of Labour Conflict|270
4|III. Employers´ Instruments|271
5|1. Lockout|271
5|2. Further Instruments of Labour Conflict|271
3|C. Legal Consequences|272
4|I. Consequences of an Unlawful Labour Conflict|272
4|II. Consequences of a Lawful Labour Conflict|273
5|1. Consequences for the Parties of the Labour Conflict|273
5|2. Consequences for the Parties of the Employment Contract|273
4|III. Legal Consequences for Third Parties|274
3|D. Preliminary Legal Protection and Conciliation|275
3|E. Key Aspects|275
2|Chapter 21 Employee Representation|277
3|A. Introduction|277
3|B. Works Council|278
4|I. Elections|278
5|1. Operation|279
5|2. Eligible Employees|279
5|3. Election Process|279
6|a) Regular Election Process|279
6|b) Simplified Election Process in Small Operations|280
5|4. The Timing of Works Council Elections and Term of Works Council Members|280
5|5. Size of the Works Council|280
5|6. Challenging Works Council Elections|281
5|7. Protection Against Dismissals|281
4|II. Role of Members|282
5|1. General|282
5|2. Protection Against Dismissals|283
4|III. Information and Consultation Rights|283
5|1. Works Agreements|283
5|2. General Rights|284
5|3. Personnel Matters|284
6|a) General Personnel Matters|284
6|b) Matters of Continued Professional Education|285
6|c) Individual Personnel Matters|285
7|aa) Hiring, Transfer and Regrouping of Employees|285
7|bb) Dismissing Employees|285
5|4. Social Matters|286
6|a) Catalogue of Co-Determination Rights|286
7|aa) Policies Relating to the Order of the Operation and Conduct of Employees|286
7|bb) The Start and End of the Working Day and Allocation of Hours on Weekdays|286
7|cc) Temporary Increase or Decrease of Operational Working Time|287
7|dd) Introducing and Using of Technology to Control the Conduct or the Performance of Employees|287
7|ee) Implementation of ``Social Institutions´´|287
7|ff) Operational Pay Scheme|287
6|b) Conciliation Committee|288
6|c) Remedies for Breach of Co-Determination Rights|288
5|5. Economic Matters|288
3|C. Central and Group Works Council|290
4|I. Central Works Council|290
4|II. Group Works Council|290
3|D. Economic Committee|290
3|E. European Works Council|291
4|I. European Works Council Based on Agreement|291
4|II. European Works Council Based on Statutory Laws|292
3|F. Agency Workers and Thresholds|292
3|G. Key Aspects|293
2|Chapter 22 Restructuring|294
3|A. Introduction|294
3|B. Short-Time Working|294
4|I. Preconditions|295
4|II. Content of Short-Time Allowance|295
3|C. Reduction in Force Programmes|295
4|I. Action Plan and Timelines|296
5|1. Preparation (Phase 1)|296
5|2. Information and Consultation with the Works Council (Phase 2)|296
5|3. Implementation (Phase 3)|297
4|II. Geographical, Material and Personal Scope|298
4|III. Works Council´s Rights of Co-Determination|298
5|1. Change of Operations|298
5|2. Balance of Interests|299
5|3. Social Plan|300
5|4. Transfer Company|301
5|5. Transfer of Undertaking Related Issues|302
3|D. Examples|303
4|I. Reduction of Central Functions|303
4|II. Outsourcing of a Group of Employees|303
4|III. Collective Dismissals|303
4|IV. Impact of Special Protection Against Dismissals|304
3|E. Key Aspects|305
2|Chapter 23 Mergers and Acquisitions|306
3|A. Introduction|306
3|B. Overview of a Typical Transaction|306
3|C. Due Diligence|307
4|I. Issues to Be Addressed in a Due Diligence|308
4|II. Data Protection|310
3|D. Structure of the Transaction|311
4|I. Share Deal|311
4|II. Asset Deal|312
5|1. Transfer of Business|312
5|2. Assumption of All Employment Relationships by Purchaser|312
4|III. Transactions According to the Company Transformation Act|313
5|1. Corporate Structure|313
5|2. Labour and Employment Consequences|313
4|IV. Pre-Transaction Considerations|314
5|1. Carve Out|314
5|2. Reduction of Headcount Prior to Transaction|315
5|3. Separation Agreements in Insolvency Situations|315
5|4. Collective Bargaining Agreements|316
3|E. Information and Consultation Rights of Employee Representatives|316
4|I. European Works Council|317
4|II. Works Council|317
4|III. Economic Committee|318
4|IV. Timing of Consultation with Employee Representatives and Ad Hoc Notifications to Stock Markets|318
3|F. Purchase Agreement|319
4|I. Employee Related Provisions|319
4|II. Warranties|321
3|G. Post-Merger Integration|321
3|H. Key Aspects|322
2|Chapter 24 Business Transfers|323
3|A. Introduction|323
3|B. Scope of Application|324
3|C. Mandatory Rule|324
3|D. Business Transfer as a Precondition|324
4|I. Transfer of a Business or Part of a Business|324
5|1. Definition of the Jurisdiction|324
5|2. Self-Functioning Unit|326
5|3. Outsourcing|326
5|4. Change of Ownership|326
4|II. Leading Cases|327
5|1. Klarenberg|327
5|2. Temco|328
5|3. Ayse Süzen ./. Zehnacker Gebäudereinigung Krankenhausservice|328
5|4. Carlito Abler and Others|328
5|5. Güney-Görres and Demir|329
5|6. Federal Labour Court|329
3|E. Impact on Collective Agreements|330
4|I. Transformation|331
4|II. Continuation|331
4|III. Replacement|332
3|F. Effective Date of Transfer|332
3|G. Liability|332
3|H. Dismissal Protection|333
4|I. Introduction|333
4|II. Scope of Application|333
4|III. Closing Down of the Business|333
4|IV. Claim to Reinstatement|334
3|I. Information of the Employees|334
4|I. Employee Notification|334
4|II. Issues Concerning the Information in the Notification|334
5|1. Time of the Transfer|335
5|2. Grounds for the Transfer|335
5|3. Legal, Economic and Social Consequences of the Transfer for the Employees|335
5|4. Contemplated Measures|336
5|5. Content of the Notification|336
5|6. Time of the Notification|336
5|7. Form of the Notification|337
5|8. Legal Consequences of an Omitted Notification|337
3|J. Right of Objection|338
4|I. Prerequisites|338
4|II. Consequences of Objection|338
3|K. Cross-Border Transactions|339
4|I. National Transfers|339
4|II. International Relocations|339
3|L. Stock Option Plans|340
3|M. Key Aspects|340
2|Chapter 25 Stock Options|342
3|A. Introduction|342
3|B. Corporate Law|343
4|I. Real Equity Capital Instruments|343
5|1. Cost-Free Allocation of Shares from Existing Shareholders|343
5|2. Contingent Capital Increase|343
6|a) Simple Preemptive Rights|343
6|b) Convertible Bonds/Warrant Bonds and Option Bonds|344
5|3. Purchase of Own Shares|344
6|a) Employee Stocks|345
6|b) Stock Options on the Basis of General Authority to Acquire Own Shares|345
5|4. Authorised Capital|345
4|II. Virtual Equity Capital Instruments (Synthetic Options, Phantom Stocks, Stock Appreciation Rights)|346
4|III. General Restrictions Concerning Stock Option Plans for Board Members|346
3|C. Contractual and Labour and Employment Law Issues of Granting Stock Options|347
4|I. Stock Corporation Law Aspects|347
4|II. Labour and Employment Law Aspects|347
5|1. Legal Basis for Granting Stock Options|347
6|a) Individual Agreement|347
6|b) Works Agreement|348
6|c) Operational Practice|348
5|2. Typical Employment Issues|349
6|a) Principle of Equal Treatment|349
6|b) Discrimination|349
6|c) Forfeiture Provisions|349
3|D. Insider Trading|349
4|I. Introduction of the Stock Option Plan|350
4|II. Allocation of the Stock Options|350
4|III. Exercise of Stock Options|350
4|IV. Sale of Shares|350
4|V. Harmful Effect on the Company´s Reputation Because of the Appearance of Insider Trading|351
3|E. Reporting Obligations Under Securities Regulations|351
4|I. Directors´ Dealings|351
4|II. Holding of Financial Instruments|352
3|F. Tax Law Aspects|353
4|I. Employee Shares|353
4|II. Convertible or Option Bonds, Synthetic Options|353
5|1. Option Bonds, Synthetic Options|353
5|2. Convertible Bonds|354
5|3. Stock Appreciation Rights, Restricted Stock|354
5|4. Capital Gains|355
4|III. Simple Preemptive Rights|355
4|IV. Reserved Shares|356
4|V. Limitation of German Taxation on Monetary Benefits from Preemptive Rights and Similar Instruments, Taxable Income for Servi...|356
4|VI. Wage Tax, Capital Gains|357
5|1. Wage Tax|357
5|2. Capital Gains|357
3|G. Tax Deduction for the Cost of the Stock Option Programme for the German Employer|358
3|H. Selection of the Most Suitable Model in Practice|359
4|I. Contingent Capital Increase|359
4|II. Authorised Capital|359
4|III. Purchasing Own Shares|360
4|IV. Synthetic Options|360
3|I. Key Aspects|360
2|Chapter 26 Retirement and Occupational Pensions|362
3|A. Introduction|362
4|I. Sources|363
4|II. Reform of the Occupational Pension Act|364
3|B. Basic Structural Elements of Occupational Pensions|364
4|I. Contractual Basis of a Pension Grant|364
4|II. Individual and Collective Pension Grants|365
5|1. Individual Pension Grant|365
6|a) Standard Contract (Vertragliche Einheitsregelung)|365
6|b) General Promise (Gesamtzusage)|366
6|c) Operational Practice (Betriebliche Übung)|366
6|d) Principle of Equal Treatment (Gleichbehandlungsgrundsatz)|366
5|2. Collective Pension Grant|367
4|III. Defined Benefit and Defined Contribution Plans|367
5|1. Defined Benefit Plans (Leistungszusage)|367
5|2. Defined Contribution Plans (Beitragsorientierte Leistungszusage)|368
5|3. Defined Contribution with Guaranteed Minimum Benefit (Beitragszusage mit Mindestleistung)|369
4|IV. Deferred Compensation|369
3|C. Five Funding Vehicles for Company Pension Schemes|369
4|I. Direct Pension Promise|370
5|1. Overview and Legal Structure|370
5|2. Funding and Financial Implications|371
5|3. Tax Implications|371
4|II. Direct Life Insurance|371
5|1. Overview and Legal Structure|371
5|2. Funding and Financial Implications|372
5|3. Tax Implications|372
4|III. Support Fund|372
5|1. Overview and Legal Structure|372
5|2. Funding and Financial Implications|373
5|3. Tax Implications|373
4|IV. Captive Pension Insurance|374
5|1. Overview and Legal Structure|374
5|2. Funding and Financial Implications|374
5|3. Tax Implications|374
4|V. Pension Fund|375
5|1. Overview and Legal Structure|375
5|2. Funding and Financial Implications|375
5|3. Tax Implications|375
3|D. Minimum Legal Protection for Occupational Pensions|375
4|I. Vesting of Occupational Pensions|375
4|II. Restrictions for Pension Settlements, Early Payouts and Transfer Rules|376
4|III. Indexation of Ongoing Pensions|376
4|IV. Restructuring of Pension Schemes|377
4|V. Statutory Insolvency Protection for Occupational Pensions|378
3|E. Key Aspects|378
2|Chapter 27 Employee Co-Determination at Board Level|380
3|A. Introduction|380
3|B. German Co-Determination Law|381
4|I. General Principles|381
5|1. Two-Tier Corporate Management|381
6|a) Management Board|381
6|b) Supervisory Board|382
5|2. Constitutionality of Co-Determination Laws|382
4|II. Co-Determination Statutes|382
5|1. Co-Determination in Corporations of the Coal Mining and Steel Producing (Montan) Industry with 1000 Employees|382
6|a) Almost Parity Co-Determination|383
6|b) Scope of Employees|383
6|c) Labour Director|384
6|d) Company Groups Controlling Corporations of the Coal Mining and Steel Producing Industry|384
5|2. Co-Determination in Large-Scale Corporations with 2000 Employees|384
6|a) Parity Co-Determination|385
6|b) Scope of Employees|385
6|c) Labour Director|386
5|3. Co-Determination in Other Corporations with 500 Employees|386
6|a) One-Third Participation|386
6|b) Scope of Employees|387
3|C. EU Co-Determination Law|388
4|I. Co-Determination in the Societas Europaea|388
5|1. Societas Europaea|388
5|2. Co-Determination|388
4|II. Co-Determination in Cross-Border Mergers|389
3|D. Key Aspects|390
2|Chapter 28 Court Proceedings|391
3|A. Introduction|391
3|B. Labour Court System|391
4|I. Jurisdiction|391
5|1. Subject Matter Jurisdiction|391
5|2. Local Jurisdiction|392
4|II. Hierarchy Levels|392
4|III. Court Composition|393
3|C. Labour Court Proceedings|393
4|I. Individual Disputes|393
5|1. Filing of an Action|393
5|2. Conciliation Hearing|394
5|3. Settlement Negotiations|394
5|4. Main Hearing|394
5|5. Decisions in Wrongful Dismissal Proceedings|395
6|a) Continued Employment|395
6|b) Dissolution and Severance Payment|395
4|II. Collective Disputes|397
3|D. Costs of Labour Court Proceedings|397
3|E. Key Aspects|398
1|English Index|399
1|Key English Terms|405
1|Key German Terms|415
1|Editors and Contributors|18
1|Abbreviations|21
1|Chapter 1 Executive Summary: German Employment and Labour Law|24
2|A. Background|24
2|B. Company Perspective|25
3|I. Legal Entities|25
3|II. Co-Determination|26
3|III. Managing Director and Management Board Member|26
3|IV. Small Business Operations|27
3|V. Companies Abroad|27
2|C. Employment Law|27
3|I. Employment Contract|27
3|II. Dismissal Protection|28
4|1. Extraordinary Termination|29
4|2. Ordinary Termination and Wrongful Dismissal Protection|29
5|a) Ordinary Termination|29
5|b) Wrongful Dismissal Protection|30
5|c) Statutory Grounds for Termination|30
5|d) Mass Dismissals|32
5|e) Modification Dismissals|32
4|3. Special Dismissal Protection|33
3|III. Minimum Wage|33
3|IV. Anti-Discrimination|34
4|1. Discrimination Criteria|34
4|2. Discriminatory Behaviour and Justified Discrimination|34
4|3. Legal Consequences|35
3|V. Employee Data Protection|35
4|1. Overview|35
4|2. The EU-U.S. Privacy Shield|36
4|3. The European General Data Protection Regulation|37
3|VI. Part-Time and Fixed-Term Employment|39
4|1. Part-Time Employment|39
4|2. Fixed-Term Employment|39
3|VII. Employee Leave Entitlements|40
3|VIII. Employee Liability|40
2|D. Labour Law|41
3|I. Works Council|41
3|II. Co-Determination Rights|42
4|1. General Principles|42
4|2. Operational Changes|42
3|III. Transfer of Business|43
4|1. Transfer of Employment Relationships|44
4|2. Employees´ Right to Information|44
4|3. Employees´ Right to Object|44
4|4. Special Termination Protection|45
4|5. Liability|45
4|6. Transfer of Business and Operational Changes of Business|45
3|IV. Collective Bargaining Agreements|46
3|V. The Principle of Tariff Unity|46
1|Part I: Employment Law|47
2|Chapter 2 Recruitment|48
3|A. Introduction|48
3|B. Recruitment Practice|48
4|I. Diversity Issues|48
4|II. Pre-Contractual Duties|49
3|C. Recruitment Process|49
4|I. Job Advertisements|49
4|II. Application Documents and Applicant Data|49
5|1. Application Documents|49
5|2. Applicant Data|50
6|a) Obligation to Delete Data|50
6|b) Aspects of Cross-Border Transfers of Applicant Data|50
4|III. The Selection Process: Vetting and Screening|51
5|1. Procuring Information from Applicants/Job Interviews|51
6|a) Asking Questions|51
6|b) Employee Questionnaires|52
6|c) Assessment Tests, Medical Examinations and Screenings|52
6|d) Compensation of Travel Expenses|52
5|2. Procuring Information from Third Parties|53
5|3. Procuring Information from the Internet|53
4|IV. Concluding Employment Contracts|53
4|V. Unsuccessful Job Applications|54
4|VI. Works Council Co-Determination Issues|54
3|D. Reference Letters|55
3|E. Key Aspects|56
2|Chapter 3 Employment Contracts and Further Legal Sources|57
3|A. Introduction|57
3|B. Employment Contracts|58
4|I. Content|58
4|II. Form|59
3|C. Further Legal Sources|59
4|I. European Union Law and International Law|59
5|1. European Union Law|59
5|2. International Law|60
4|II. Constitution and Statutory Law|60
5|1. Constitutional Law|60
5|2. Statutory Law|61
4|III. Labour Court Jurisprudence|61
4|IV. Collective Bargaining Agreements|62
4|V. Works Agreements|62
4|VI. Employer Directives and Operational Practice|63
5|1. Employer Directives|63
5|2. Operational Practice|63
4|VII. Equal Treatment Principle|63
3|D. Key Aspects|64
2|Chapter 4 Employee or Freelance Worker|65
3|A. Introduction|65
3|B. Definition Employee and Freelance Worker|66
3|C. Distinction Employees and Freelance Workers|66
3|D. Evaluation of Employment Status|66
4|I. Duty to Comply with Instructions|67
4|II. Observance of Fixed Working Hours/Working Schedules|67
4|III. Place of Work|67
4|IV. Permission to Work for Others|68
4|V. Term of Employment|68
4|VI. Tax and Social Insurance Contributions|68
4|VII. Entrepreneurial Activity|68
4|VIII. Integration/Hierarchy|69
4|IX. Form of Payment and Holiday|69
4|X. Intentions of the Parties|69
3|E. Typical Factors Indicating Employment Status|70
3|F. Codification into the Civil Code|70
3|G. Legal Consequences|71
4|I. Employment and Labour Law|71
4|II. Social Security Law|71
4|III. Tax Law|71
3|H. Status Clearance|72
3|I. Key Aspects|72
2|Chapter 5 Agency Workers|73
3|A. Introduction|73
3|B. The Law on Agency Work|74
4|I. Permission to Contract Employees to Other Companies|74
5|1. Issue and Withdrawal of the Permit|74
5|2. Agency Work Without Permit|75
4|II. Structure of the Contractual Relations|76
5|1. Contractual Relations Between Employer and Client|76
5|2. Contractual Relationship Between Employer and Agency Workers|76
4|III. Statutory Maximum Lease Period of 18 Months|76
4|IV. Labour Protection of Agency Workers|77
4|V. Health and Safety Regulations|78
5|1. Responsibility of the Client|78
5|2. Responsibility of the Contractual Employer/Agency|78
4|VI. Collective Employee Representation|78
3|C. Key Aspects|79
2|Chapter 6 Immigration|81
3|A. Introduction|81
3|B. Residence and Employment|81
4|I. EU Nationals and Equally Treated Nationals|81
5|1. Residence|81
5|2. Employment|82
4|II. Non-EU Nationals|82
5|1. Residence|82
5|2. Employment|82
5|3. Types of Residence Permits|82
6|a) Visa|82
7|aa) Competent Authorities|82
7|bb) Visa Waivers|83
7|cc) Schengen-Visa|83
7|dd) Visa Information System (VIS)|83
7|ee) National Visa|84
6|b) Restricted Residence Permit|84
7|aa) University Studies|85
7|bb) Self-Employment|85
7|cc) Dependent Employment|86
8|Qualified Employment|86
8|Blue Card|87
8|Intra Corporate Transfer|87
8|Non-Qualified Employment|88
6|c) Unrestricted Settlement Permit|89
6|d) EU Long-Term Residence Permit|89
5|4. Visa Regulation for Russian Citizens|90
5|5. Integration Act|90
4|III. Administrative Offences|90
3|C. Employment Relationships with Foreign Employees|91
4|I. Principles of Conflict of Laws|91
4|II. Social Security Insurance|91
5|1. General Principles|91
5|2. Citizens of the European Economic Area and Switzerland|92
5|3. Citizens of Other Countries|92
4|III. Tax|93
5|1. General Principles|93
5|2. Double Taxation Treaties|93
3|D. Potential Impact of the Brexit|93
3|E. Key Aspects|94
2|Chapter 7 Employee Secondments|96
3|A. Introduction|96
3|B. Cultural Awareness and the Appropriate Secondee|97
3|C. Employment Law Issues|97
4|I. Contractual Structure|97
4|II. Content of the Secondment Agreement|98
5|1. Job Description/Reporting Structure|99
5|2. Duration of the Secondment|99
5|3. Expenses for Preparatory Training|99
5|4. Remuneration|99
5|5. Annual Leave and Public Holidays|100
5|6. Travel Expenses|100
5|7. Emergencies|100
5|8. Return of the Employee|101
5|9. Other Issues|101
5|10. Governing Laws|102
3|D. Social Security|102
4|I. European Union Laws|102
4|II. Bilateral Social Security Treaties|103
4|III. Principles of ``Inward/Outward Radiation´´|104
3|E. Tax Laws|105
3|F. Key Aspects|106
2|Chapter 8 Pay and Benefits|107
3|A. Remuneration|107
4|I. Agreements|107
4|II. Remuneration for Overtime Work|108
4|III. Minimum Wage|108
4|IV. Remuneration Transparency|109
4|V. Operational Practice|109
5|1. Reservation of Voluntariness|110
5|2. Requirement of Double Written Form|110
5|3. No Possibility for Contrary Operational Practice|111
4|VI. Bonus Payments|111
5|1. Types of Bonus Payments|111
6|a) Commission|111
6|b) Gratuity|111
6|c) Profit Sharing|112
6|d) Supplemental Pay|112
5|2. Reserving Voluntariness, Revocation Rights and Reasonable Discretion|112
6|a) Reservation of Voluntariness|112
6|b) Revocation Rights|113
6|c) Reasonable Discretion|114
4|VII. Sick Pay|114
3|B. Benefits|114
4|I. Social Security Insurance Scheme|114
5|1. Overview|114
5|2. Social Security Insurance Branches|114
6|a) Pension Insurance|115
6|b) Unemployment Insurance|115
6|c) Health Insurance|116
6|d) Nursing Insurance|116
6|e) Accident Insurance|116
4|II. Social Security Insurance Contributions|117
5|1. Obligations of the Employer|117
5|2. Obligations of the Employee|117
5|3. Composition and Calculation of Contribution Payments|117
5|4. Employer´s Civil and Criminal Liability|118
5|5. Employer´s Claims Against Employees|119
3|C. Example Calculation for Social Security Insurance Contributions|119
3|D. General Tax Law Aspects|120
3|E. Key Aspects|120
2|Chapter 9 Working Hours, Holidays and Health and Safety|122
3|A. Introduction|122
3|B. Working Hours|123
4|I. Working Hours Act|123
5|1. Purpose and Applicability|123
5|2. Working Hours|123
5|3. Rest Breaks|123
5|4. Rest Period|124
5|5. Records|124
4|II. Collective Bargaining Agreements|124
4|III. The Role of the Works Council|124
3|C. Holidays|125
4|I. Applicability and Amount|125
4|II. No Waivers|126
4|III. Obligations of the Employee|126
4|IV. Holidays in Case of Termination|126
4|V. Public Holidays|127
3|D. Health and Safety|127
4|I. Protection Regulations|128
4|II. Health Examinations|128
4|III. Employee Duties|128
4|IV. The Role of the Works Council|129
3|E. Key Aspects|129
2|Chapter 10 Partial Retirement|131
3|A. Introduction|131
3|B. Prerequisites of Partial Retirement|131
4|I. Qualifying Employees|131
4|II. Agreement on Partial Retirement|132
4|III. Reduction of Working Hours|132
3|C. Models of Partial Retirement|133
4|I. Continuity Model|133
4|II. Block Model|133
3|D. Special Issues of the Block Model|133
4|I. Duration|133
4|II. Remuneration|134
4|III. Holiday|134
4|IV. Sickness|134
4|V. Termination|135
4|VI. Malfunction|135
4|VII. Insolvency Insurance|135
3|E. Payment Obligations|136
4|I. Increase Amounts to the Salary|136
4|II. Additional Contributions to the Statutory Pension Insurance|137
4|III. Tax Privileges|137
3|F. Key Aspects|138
2|Chapter 11 Diversity and Discrimination|139
3|A. Introduction|139
3|B. General Equal Treatment Act|140
4|I. Grounds of Discrimination|140
5|1. Race and Ethnic Origin|140
5|2. Religion or Belief|140
5|3. Gender|141
5|4. Disability|141
5|5. Age|141
5|6. Sexual Identity|141
4|II. Factual Scope of Application|142
4|III. Protected Individuals|142
4|IV. Discriminatory Behaviour|143
5|1. Direct Discrimination|143
5|2. Indirect Discrimination|144
5|3. Harassment|144
5|4. Sexual Harassment|144
5|5. Instructions to Discriminate|144
4|V. Justified Discrimination|145
4|VI. Rights of Persons Concerned|145
5|1. Voidness of Discriminatory Act|146
5|2. Compensation for Damages|146
5|3. Compensation|146
5|4. Right to Complain|146
5|5. Right to Refuse Performance|147
5|6. No Claim to Employment or Promotion|147
5|7. Injunctive Relief|147
4|VII. Burden of Proof|147
4|VIII. Practical Consequences|148
5|1. Prevention|148
5|2. Investigations|148
5|3. Sanction|148
3|C. Key Aspects|149
2|Chapter 12 Data Protection and Monitoring|150
3|A. The Employee´s Right to Privacy|150
3|B. Lawfulness of Utilising Personal Data of Employees|151
4|I. Statutory Provisions|151
4|II. Works Agreement|151
4|III. Consent of the Employee|152
3|C. Data Uses With Relevance for the Employment|153
4|I. Monitoring of Employees|153
5|1. Surveillance of Premises Open to the Public|153
5|2. Surveillance of Premises with Restricted Access|153
5|3. Data Processing Steps in Order to Reveal Criminal Conduct|154
5|4. Involvement of the Works Council|155
4|II. Internet/Email Use by Employees in Workplace|155
4|III. Sharing Employee Information Within Groups of Companies|156
4|IV. Outsourcing Employee Data Processing Operations|156
4|V. Transfer of Employee Data Outside the EU|157
5|1. General Requirements for the Transfer of Employee Data Outside the EU|157
5|2. Transfer of Employee Data to the USA|158
3|D. Appointment of a Data Protection Officer|160
3|E. The General Data Protection Regulation|160
4|I. Key Facts|160
4|II. Territorial Scope|161
4|III. Lawfulness of Utilising Personal Data of Employees Under the GDPR|162
4|IV. Fair Processing and Individual Rights|164
4|V. Principle of Accountability|164
4|VI. Appointment of a Data Protection Officer Under the GDPR|165
4|VII. Transfer of Data to Third Countries Under the GDPR|165
3|F. Key Aspects|166
2|Chapter 13 Employee Inventions and Copyrights|167
3|A. Introduction|167
3|B. Employee Inventions and Technical Improvement Proposals|168
4|I. General|168
4|II. Scope of Personal Applicability|168
4|III. Employee Inventions, Free Inventions and Technical Improvement Proposals|168
4|IV. Rights and Obligations of the Employer and the Employee|169
5|1. Notification|169
5|2. Claiming of the Invention by the Employer|170
5|3. Consequences of the Employer Claiming the Invention|170
4|V. Remuneration|171
5|1. Extent of the Obligation to Compensate the Employee|171
5|2. Calculation of the Remuneration|171
6|a) Procedure|171
6|b) Calculation Method|172
6|c) Determining the Value of an Employee Invention|172
6|d) Contribution of the Employee|172
5|3. Litigation About the Compensation|173
4|VI. Abandonment of the Rights|173
3|C. Copyrights|173
3|D. Key Aspects|174
2|Chapter 14 Non-Competition Clauses|175
3|A. Introduction|175
3|B. Post-Contractual Non-Competition Clauses|176
4|I. Employees|176
5|1. Form|176
5|2. Compensation Payment During Non-Competition Period|176
5|3. Calculation and Payment of the Compensation|177
5|4. Further Requirements: Legitimate Interest of Employer: Sector, Geographical Area and Duration|178
5|5. Set-Off of Employee´s Earnings Against Compensation Payment|178
5|6. Rights of the Employer in the Event of Breach|179
5|7. Choice of Employee|179
5|8. Waiver by the Employer|179
4|II. Legal Representatives|180
5|1. Legitimate Interest of the Company|180
5|2. Geographical Scope of the Non-Competition Clause|180
5|3. Term of the Non-Competition Clause|180
5|4. Compensation Payment|181
5|5. Set-Off of Earnings of the Legal Representative During the Period of the Non-Competition Clause Against Compensation Payment|181
5|6. Waiver|181
5|7. Legal Representative´s Choice|181
5|8. Breach of Non-Competition Clause: Options of the Company|182
3|C. Contractual Non-Competition Obligation During Employment|182
4|I. Employees|182
5|1. Scope of Prohibition|182
5|2. Steps Available to the Employer in the Event of Breach|182
4|II. Legal Representatives|183
5|1. Scope of Prohibition|183
5|2. Steps Available to the Company in the Event of Breach by the Executive|183
3|D. Key Aspects|183
2|Chapter 15Termination of Employment|185
3|A. Introduction|185
3|B. Notice Period|186
3|C. Termination Notice|187
3|D. Service of the Termination Notice|187
3|E. General Termination Protection by Social Justification|188
4|I. Scope of Application|188
5|1. Size of the Business: Small Business Exemption|188
5|2. Term of Employment|189
5|3. Reasons for Termination|189
4|II. Reasons for Termination|189
5|1. Person-Related Terminations|190
6|a) Illness|190
7|aa) Long Term Illness|190
7|bb) Frequent Short Term Absences|191
6|b) Alcohol or Drug Addiction|191
6|c) Work Permit|191
5|2. Conduct-Related Termination|191
6|a) Typical Issues of Misconduct|192
7|aa) Alcohol or Drug Use (Not Addicted)|192
7|bb) Unexcused Absence|192
7|cc) Misconduct Off-Work|193
7|dd) Union Activities|193
7|ee) Poor Performance|193
7|ff) Inappropriate Conduct Towards Employer or Co-Workers|193
6|b) Warning|193
5|3. Terminations for Operational Reasons|194
6|a) Compelling Operational Reasons|194
7|aa) Operational Shutdowns (Fully or in Part)|195
7|bb) Downturn in Sales and Orders|195
7|cc) Outsourcing|196
6|b) The Social Selection Process|196
7|aa) Criteria for Social Selection|196
7|bb) Employees to Be Included in the Social Selection|197
7|cc) Exemptions from the Social Selection|197
7|dd) Social Selection Step by Step|198
7|ee) List of Names in Restructuring Measures|198
6|c) No Open Job Positions|198
6|d) Mass Dismissal|199
3|F. Severance Payments|199
3|G. Termination with the Option of Altered Conditions of Employment/Modification Dismissal|200
3|H. Special Termination Protection|200
4|I. Special Termination Protection for Pregnant Employees and Mothers After Childbirth|201
4|II. Special Termination Protection for Employees on Parental Leave|201
4|III. Special Termination Protection for Employees Who Take Care of Relatives|202
4|IV. Special Termination Protection for Severely Disabled Persons|202
4|V. Special Termination Protection for Members of the Works Council|202
3|I. Works Council Consultation Prior to Termination|203
3|J. Summary Dismissal|204
4|I. Good Cause|204
4|II. Two Week Deadline|205
4|III. Suspicion of a Severe Breach of Contractual Duty or Criminal Offence|205
3|K. Wrongful Dismissal Claims|205
3|L. Termination Agreements|206
3|M. Key Aspects|206
2|Chapter 16 Family Friendly Rights|208
3|A. Introduction|208
3|B. Statutory Family Friendly Rights|209
4|I. Maternity Protection|209
5|1. Special Protection Against Dismissals|209
6|a) Term of the Special Protection|209
6|b) Scope of Protection|210
6|c) Employer´s Knowledge of Employee´s Pregnancy|210
6|d) Moral Damages|211
5|2. Other Protection Rights of Pregnant Employees|211
6|a) Prohibition from Work Prior to Childbirth|212
6|b) Prohibition from Work After Childbirth|212
6|c) Alternative Work or Temporary Release from Work|212
6|d) Remuneration During Maternity Protection|214
7|aa) Remuneration During Suspension from Work|214
7|bb) Maternity Allowance During Protection Periods|214
4|II. Parental Leave|215
5|1. How to Qualify for Parental Leave|215
6|a) Scope and Prerequisites|215
6|b) Maternity Protection and Parental Leave|216
6|c) Part-Time Work During Parental Leave|216
6|d) Several Children and Multiple Births|216
6|e) Parental Leave and Unused Holidays|217
5|2. Special Dismissal Protection|217
5|3. Parental Benefits|218
6|a) Parental Allowance|218
6|b) Care Allowance|219
4|III. Nursing Care|219
5|1. Applicability|219
5|2. Special Dismissal Protection|220
6|a) Short-Term Release from Work|220
6|b) Nursing Care Leave|220
6|c) Family Nursing Care|221
3|C. Key Aspects|221
2|Chapter 17 Managing Directors and Management Board Members|223
3|A. Introduction|223
3|B. Managing Directors|224
4|I. Appointment|224
5|1. Qualification for the Position as Managing Director|224
5|2. Service Agreement|225
4|II. Representation of the Company|225
5|1. The Managing Directors|225
5|2. Publication of Representation Rights|225
5|3. Limitation of the Authority of Managing Directors|225
4|III. Internal Management Structure|226
4|IV. Summary of Main Duties and Responsibilities|226
5|1. Diligent Management|226
6|a) Liability for Incorrect Statements|227
6|b) Liability to Shareholders|227
6|c) Liability in Case of Liquidation of the Company|227
6|d) Duty to Inform Shareholders|227
6|e) Commencing Insolvency Proceedings|228
5|2. Special Responsibilities Regarding the Preparation of Annual Accounts, the Payment of Taxes and Social Insurance Contributi...|228
6|a) Annual Accounts|228
6|b) Compliance with Tax Laws|228
6|c) Payment of Social Insurance|228
6|d) Liability for Damages|229
6|e) Compliance with Instructions of Shareholders|229
4|V. Removal and Resignation|229
5|1. Removal by the Shareholders|229
5|2. Resignation|230
5|3. Service Agreement|230
4|VI. Personal Liability|231
4|VII. Application of Employment Laws|231
3|C. Management Board Members|232
4|I. Appointment|232
5|1. Supervisory Board Resolution|232
5|2. Term|232
5|3. Deputies|233
5|4. Chairmen and Spokesmen|233
5|5. Service Agreement|233
5|6. Qualification for the Position as Management Board Member|233
4|II. Representation of the Company|234
4|III. Internal Management Structure|234
4|IV. Duties and Responsibilities|234
5|1. Duties and Responsibilities of Management Board Members|234
5|2. Violation of Duties|234
4|V. Removal and Resignation|235
5|1. Removal by Supervisory Board|235
5|2. Resignation|235
5|3. Service Agreement|236
4|VI. Application of Employment Law|236
3|D. Key Aspects|236
2|Chapter 18 Compliance Investigations|238
3|A. Introduction|238
3|B. Process of Investigation|239
4|I. Start of Investigation|239
4|II. Compliance Team|240
4|III. Gathering the Facts|240
5|1. Collection and Screening of Data|240
6|a) Hold Notice|240
6|b) Data Protection Laws|241
6|c) Documentation|241
6|d) Works Council Participation|242
5|2. Interview of Suspected Employees|242
6|a) Legal Outline|242
6|b) Admissible Questions|242
6|c) Works Council Participation|243
3|C. Disciplinary Consequences|244
4|I. Dismissal|244
5|1. Ordinary Dismissal|244
5|2. Dismissal with Immediate Effect|245
4|II. Formal Warning|246
4|III. Assignment to Another Position|246
4|IV. Release From Work With Full Pay|247
3|D. Criminal and Other Consequences|247
3|E. Foreign Investigations|247
3|F. Preventive Measures|248
4|I. Code of Conduct: Tone of the Top|248
4|II. Works Agreement About Compliance Investigations|248
3|G. Corporate Whistleblowing Programmes|248
4|I. Legal Outline|249
4|II. Conditions of the Programme|249
4|III. Co-Determination and Data Protection|250
3|H. Key Aspects|250
1|Part II: Labour Law|251
2|Chapter 19 Unions and Collective Bargaining|252
3|A. Coalitions|252
4|I. Background|252
4|II. Definition of the Term ``Coalition´´|252
4|III. Freedom of Association|253
4|IV. Employers´ Associations and Trade Unions|253
5|1. Employers´ Associations|253
5|2. Trade Unions|254
4|V. Coalition Rights in Companies|255
3|B. Collective Bargaining|255
4|I. Background|255
4|II. Forms of Collective Bargaining Agreements|256
5|1. Collective Association Agreement|256
5|2. Collective Company Agreements|256
4|III. Preconditions for Collective Bargaining Agreements|256
5|1. Written Form|256
5|2. Capacity for Collective Bargaining|256
5|3. Competence for Collective Bargaining|257
4|IV. Scope of Application|257
4|V. Effect of Collective Bargaining Agreements|257
5|1. Contractual Effect|257
5|2. Statutory Effect|258
6|a) Priority Over Contractual Terms|258
6|b) Waiver, Cut-Off Periods|259
4|VI. Binding Effect of Collective Bargaining Agreements|259
5|1. Immediate Application|259
5|2. Contractual Application|260
6|a) Jurisdiction of the Federal Labour Court|261
6|b) Consequences of the Jurisdiction|261
5|3. General Binding Effect|262
5|4. Operational Practice|262
4|VII. Termination of Collective Bargaining Agreements|262
4|VIII. Post-Termination Effects|263
4|IX. Concurrency and the Principle of Tariff Unity|263
3|C. Key Aspects|264
2|Chapter 20 Labour Conflicts|266
3|A. Introduction|266
3|B. Labour Conflict Practice|267
4|I. Principle of Parity|267
4|II. Employees´ Instruments|267
5|1. Strike|267
6|a) Formal Requirements|267
6|b) Purposeful Action|268
6|c) Relative Peace Obligation|268
6|d) Principle of Proportionality|268
6|e) Overview of Days Not Worked Due to Labour Conflicts Worldwide|269
5|2. Further Instruments of Labour Conflict|270
4|III. Employers´ Instruments|271
5|1. Lockout|271
5|2. Further Instruments of Labour Conflict|271
3|C. Legal Consequences|272
4|I. Consequences of an Unlawful Labour Conflict|272
4|II. Consequences of a Lawful Labour Conflict|273
5|1. Consequences for the Parties of the Labour Conflict|273
5|2. Consequences for the Parties of the Employment Contract|273
4|III. Legal Consequences for Third Parties|274
3|D. Preliminary Legal Protection and Conciliation|275
3|E. Key Aspects|275
2|Chapter 21 Employee Representation|277
3|A. Introduction|277
3|B. Works Council|278
4|I. Elections|278
5|1. Operation|279
5|2. Eligible Employees|279
5|3. Election Process|279
6|a) Regular Election Process|279
6|b) Simplified Election Process in Small Operations|280
5|4. The Timing of Works Council Elections and Term of Works Council Members|280
5|5. Size of the Works Council|280
5|6. Challenging Works Council Elections|281
5|7. Protection Against Dismissals|281
4|II. Role of Members|282
5|1. General|282
5|2. Protection Against Dismissals|283
4|III. Information and Consultation Rights|283
5|1. Works Agreements|283
5|2. General Rights|284
5|3. Personnel Matters|284
6|a) General Personnel Matters|284
6|b) Matters of Continued Professional Education|285
6|c) Individual Personnel Matters|285
7|aa) Hiring, Transfer and Regrouping of Employees|285
7|bb) Dismissing Employees|285
5|4. Social Matters|286
6|a) Catalogue of Co-Determination Rights|286
7|aa) Policies Relating to the Order of the Operation and Conduct of Employees|286
7|bb) The Start and End of the Working Day and Allocation of Hours on Weekdays|286
7|cc) Temporary Increase or Decrease of Operational Working Time|287
7|dd) Introducing and Using of Technology to Control the Conduct or the Performance of Employees|287
7|ee) Implementation of ``Social Institutions´´|287
7|ff) Operational Pay Scheme|287
6|b) Conciliation Committee|288
6|c) Remedies for Breach of Co-Determination Rights|288
5|5. Economic Matters|288
3|C. Central and Group Works Council|290
4|I. Central Works Council|290
4|II. Group Works Council|290
3|D. Economic Committee|290
3|E. European Works Council|291
4|I. European Works Council Based on Agreement|291
4|II. European Works Council Based on Statutory Laws|292
3|F. Agency Workers and Thresholds|292
3|G. Key Aspects|293
2|Chapter 22 Restructuring|294
3|A. Introduction|294
3|B. Short-Time Working|294
4|I. Preconditions|295
4|II. Content of Short-Time Allowance|295
3|C. Reduction in Force Programmes|295
4|I. Action Plan and Timelines|296
5|1. Preparation (Phase 1)|296
5|2. Information and Consultation with the Works Council (Phase 2)|296
5|3. Implementation (Phase 3)|297
4|II. Geographical, Material and Personal Scope|298
4|III. Works Council´s Rights of Co-Determination|298
5|1. Change of Operations|298
5|2. Balance of Interests|299
5|3. Social Plan|300
5|4. Transfer Company|301
5|5. Transfer of Undertaking Related Issues|302
3|D. Examples|303
4|I. Reduction of Central Functions|303
4|II. Outsourcing of a Group of Employees|303
4|III. Collective Dismissals|303
4|IV. Impact of Special Protection Against Dismissals|304
3|E. Key Aspects|305
2|Chapter 23 Mergers and Acquisitions|306
3|A. Introduction|306
3|B. Overview of a Typical Transaction|306
3|C. Due Diligence|307
4|I. Issues to Be Addressed in a Due Diligence|308
4|II. Data Protection|310
3|D. Structure of the Transaction|311
4|I. Share Deal|311
4|II. Asset Deal|312
5|1. Transfer of Business|312
5|2. Assumption of All Employment Relationships by Purchaser|312
4|III. Transactions According to the Company Transformation Act|313
5|1. Corporate Structure|313
5|2. Labour and Employment Consequences|313
4|IV. Pre-Transaction Considerations|314
5|1. Carve Out|314
5|2. Reduction of Headcount Prior to Transaction|315
5|3. Separation Agreements in Insolvency Situations|315
5|4. Collective Bargaining Agreements|316
3|E. Information and Consultation Rights of Employee Representatives|316
4|I. European Works Council|317
4|II. Works Council|317
4|III. Economic Committee|318
4|IV. Timing of Consultation with Employee Representatives and Ad Hoc Notifications to Stock Markets|318
3|F. Purchase Agreement|319
4|I. Employee Related Provisions|319
4|II. Warranties|321
3|G. Post-Merger Integration|321
3|H. Key Aspects|322
2|Chapter 24 Business Transfers|323
3|A. Introduction|323
3|B. Scope of Application|324
3|C. Mandatory Rule|324
3|D. Business Transfer as a Precondition|324
4|I. Transfer of a Business or Part of a Business|324
5|1. Definition of the Jurisdiction|324
5|2. Self-Functioning Unit|326
5|3. Outsourcing|326
5|4. Change of Ownership|326
4|II. Leading Cases|327
5|1. Klarenberg|327
5|2. Temco|328
5|3. Ayse Süzen ./. Zehnacker Gebäudereinigung Krankenhausservice|328
5|4. Carlito Abler and Others|328
5|5. Güney-Görres and Demir|329
5|6. Federal Labour Court|329
3|E. Impact on Collective Agreements|330
4|I. Transformation|331
4|II. Continuation|331
4|III. Replacement|332
3|F. Effective Date of Transfer|332
3|G. Liability|332
3|H. Dismissal Protection|333
4|I. Introduction|333
4|II. Scope of Application|333
4|III. Closing Down of the Business|333
4|IV. Claim to Reinstatement|334
3|I. Information of the Employees|334
4|I. Employee Notification|334
4|II. Issues Concerning the Information in the Notification|334
5|1. Time of the Transfer|335
5|2. Grounds for the Transfer|335
5|3. Legal, Economic and Social Consequences of the Transfer for the Employees|335
5|4. Contemplated Measures|336
5|5. Content of the Notification|336
5|6. Time of the Notification|336
5|7. Form of the Notification|337
5|8. Legal Consequences of an Omitted Notification|337
3|J. Right of Objection|338
4|I. Prerequisites|338
4|II. Consequences of Objection|338
3|K. Cross-Border Transactions|339
4|I. National Transfers|339
4|II. International Relocations|339
3|L. Stock Option Plans|340
3|M. Key Aspects|340
2|Chapter 25 Stock Options|342
3|A. Introduction|342
3|B. Corporate Law|343
4|I. Real Equity Capital Instruments|343
5|1. Cost-Free Allocation of Shares from Existing Shareholders|343
5|2. Contingent Capital Increase|343
6|a) Simple Preemptive Rights|343
6|b) Convertible Bonds/Warrant Bonds and Option Bonds|344
5|3. Purchase of Own Shares|344
6|a) Employee Stocks|345
6|b) Stock Options on the Basis of General Authority to Acquire Own Shares|345
5|4. Authorised Capital|345
4|II. Virtual Equity Capital Instruments (Synthetic Options, Phantom Stocks, Stock Appreciation Rights)|346
4|III. General Restrictions Concerning Stock Option Plans for Board Members|346
3|C. Contractual and Labour and Employment Law Issues of Granting Stock Options|347
4|I. Stock Corporation Law Aspects|347
4|II. Labour and Employment Law Aspects|347
5|1. Legal Basis for Granting Stock Options|347
6|a) Individual Agreement|347
6|b) Works Agreement|348
6|c) Operational Practice|348
5|2. Typical Employment Issues|349
6|a) Principle of Equal Treatment|349
6|b) Discrimination|349
6|c) Forfeiture Provisions|349
3|D. Insider Trading|349
4|I. Introduction of the Stock Option Plan|350
4|II. Allocation of the Stock Options|350
4|III. Exercise of Stock Options|350
4|IV. Sale of Shares|350
4|V. Harmful Effect on the Company´s Reputation Because of the Appearance of Insider Trading|351
3|E. Reporting Obligations Under Securities Regulations|351
4|I. Directors´ Dealings|351
4|II. Holding of Financial Instruments|352
3|F. Tax Law Aspects|353
4|I. Employee Shares|353
4|II. Convertible or Option Bonds, Synthetic Options|353
5|1. Option Bonds, Synthetic Options|353
5|2. Convertible Bonds|354
5|3. Stock Appreciation Rights, Restricted Stock|354
5|4. Capital Gains|355
4|III. Simple Preemptive Rights|355
4|IV. Reserved Shares|356
4|V. Limitation of German Taxation on Monetary Benefits from Preemptive Rights and Similar Instruments, Taxable Income for Servi...|356
4|VI. Wage Tax, Capital Gains|357
5|1. Wage Tax|357
5|2. Capital Gains|357
3|G. Tax Deduction for the Cost of the Stock Option Programme for the German Employer|358
3|H. Selection of the Most Suitable Model in Practice|359
4|I. Contingent Capital Increase|359
4|II. Authorised Capital|359
4|III. Purchasing Own Shares|360
4|IV. Synthetic Options|360
3|I. Key Aspects|360
2|Chapter 26 Retirement and Occupational Pensions|362
3|A. Introduction|362
4|I. Sources|363
4|II. Reform of the Occupational Pension Act|364
3|B. Basic Structural Elements of Occupational Pensions|364
4|I. Contractual Basis of a Pension Grant|364
4|II. Individual and Collective Pension Grants|365
5|1. Individual Pension Grant|365
6|a) Standard Contract (Vertragliche Einheitsregelung)|365
6|b) General Promise (Gesamtzusage)|366
6|c) Operational Practice (Betriebliche Übung)|366
6|d) Principle of Equal Treatment (Gleichbehandlungsgrundsatz)|366
5|2. Collective Pension Grant|367
4|III. Defined Benefit and Defined Contribution Plans|367
5|1. Defined Benefit Plans (Leistungszusage)|367
5|2. Defined Contribution Plans (Beitragsorientierte Leistungszusage)|368
5|3. Defined Contribution with Guaranteed Minimum Benefit (Beitragszusage mit Mindestleistung)|369
4|IV. Deferred Compensation|369
3|C. Five Funding Vehicles for Company Pension Schemes|369
4|I. Direct Pension Promise|370
5|1. Overview and Legal Structure|370
5|2. Funding and Financial Implications|371
5|3. Tax Implications|371
4|II. Direct Life Insurance|371
5|1. Overview and Legal Structure|371
5|2. Funding and Financial Implications|372
5|3. Tax Implications|372
4|III. Support Fund|372
5|1. Overview and Legal Structure|372
5|2. Funding and Financial Implications|373
5|3. Tax Implications|373
4|IV. Captive Pension Insurance|374
5|1. Overview and Legal Structure|374
5|2. Funding and Financial Implications|374
5|3. Tax Implications|374
4|V. Pension Fund|375
5|1. Overview and Legal Structure|375
5|2. Funding and Financial Implications|375
5|3. Tax Implications|375
3|D. Minimum Legal Protection for Occupational Pensions|375
4|I. Vesting of Occupational Pensions|375
4|II. Restrictions for Pension Settlements, Early Payouts and Transfer Rules|376
4|III. Indexation of Ongoing Pensions|376
4|IV. Restructuring of Pension Schemes|377
4|V. Statutory Insolvency Protection for Occupational Pensions|378
3|E. Key Aspects|378
2|Chapter 27 Employee Co-Determination at Board Level|380
3|A. Introduction|380
3|B. German Co-Determination Law|381
4|I. General Principles|381
5|1. Two-Tier Corporate Management|381
6|a) Management Board|381
6|b) Supervisory Board|382
5|2. Constitutionality of Co-Determination Laws|382
4|II. Co-Determination Statutes|382
5|1. Co-Determination in Corporations of the Coal Mining and Steel Producing (Montan) Industry with 1000 Employees|382
6|a) Almost Parity Co-Determination|383
6|b) Scope of Employees|383
6|c) Labour Director|384
6|d) Company Groups Controlling Corporations of the Coal Mining and Steel Producing Industry|384
5|2. Co-Determination in Large-Scale Corporations with 2000 Employees|384
6|a) Parity Co-Determination|385
6|b) Scope of Employees|385
6|c) Labour Director|386
5|3. Co-Determination in Other Corporations with 500 Employees|386
6|a) One-Third Participation|386
6|b) Scope of Employees|387
3|C. EU Co-Determination Law|388
4|I. Co-Determination in the Societas Europaea|388
5|1. Societas Europaea|388
5|2. Co-Determination|388
4|II. Co-Determination in Cross-Border Mergers|389
3|D. Key Aspects|390
2|Chapter 28 Court Proceedings|391
3|A. Introduction|391
3|B. Labour Court System|391
4|I. Jurisdiction|391
5|1. Subject Matter Jurisdiction|391
5|2. Local Jurisdiction|392
4|II. Hierarchy Levels|392
4|III. Court Composition|393
3|C. Labour Court Proceedings|393
4|I. Individual Disputes|393
5|1. Filing of an Action|393
5|2. Conciliation Hearing|394
5|3. Settlement Negotiations|394
5|4. Main Hearing|394
5|5. Decisions in Wrongful Dismissal Proceedings|395
6|a) Continued Employment|395
6|b) Dissolution and Severance Payment|395
4|II. Collective Disputes|397
3|D. Costs of Labour Court Proceedings|397
3|E. Key Aspects|398
1|English Index|399
1|Key English Terms|405
1|Key German Terms|415