5. Labor Law

Question 1

labour regulation

Answer 1

• sources:
  • legalisation, (prevailing) case - law
  • collective agreements
  • individual contracts
• areas:
  • work-time
  • security of employment / in the workplace
  • maternal / youth protection
  • sickness, vacation, holidays
  • compensation, vacations, working conditions

Question 2

employment contract

Answer 2

• limited or unlimited, full-time or part-time
• workers receive compensation and is obliged to offer service
• works on regular basis, employer may give directopms

Question 3

work contract

Answer 3

worker owes “success” and receives honovarium, works independent

Question 4

insignificant employment

Answer 4

wage < 450

limited social insurance / taxation

Question 5

co-determination

Answer 5

• mandates election of works councils if 5 employees or more
• not counted: managers’ partners / owners, spouses / relatives of owners
• as ‘managers’ are counted:
  • employees who legally represents the firm
  • or have the right to close / terminate employment contracts
  • employees who are ranked / paid like those managers
• full-time works council members possible

Question 6

work councils

Answer 6

• has a strong say on ‘social affairs’ such as the break schedule, extension/reduction
• veto right regarding the termination of individual employment contracts
• information right concerning the management of the firm, but is expressly prohibited to influence how the firm is managed
• must not be mixed up with workers’ union

Question 7

working hour

Answer 7

• limited working time to a 6-month average of 8 hours/day
• in exceptional, urgent case to 48 hours/week
• stipulates mandatory breaks during the work and minimum time between shifts
• limits nightshift and working on Sundays/public holidays: prohibited for 24 hours

Question 8

non-termination of contract

Answer 8

• prohibits the termination of long-term job contracts if the firm employs more than 1- employees, part-time workers have to be counted
• unless the termination is “socially justified”→ to be proven by the employer
• termination → employee may sue, employers usually pau for the trial

Question 9

justified reasons for terminations

Answer 9

• persons of the employee
• employee’s behaviour
• the situation of the firm
• no justification for termination
  • military
  • pregnancy
  • sickness

Question 10

payment continuation

Answer 10

• on holidays the employer has to pay the compensation
  excluded: managers, part-time, insignificant
• in case of serious illness, the employer has to pay the compensation for 6 weeks in a year
• beyond six weeks, the health insurer takes over

Question 11

maternity protection

Answer 11

• protects expecting and nursing mothers
• employment is prohibited 6 weeks before and 8 weeks after the delivery
• compensation has to be paid
• contract termination during expectancy and 4 months after delivery is prohibited

Question 12

part-time / temporary work

Answer 12

• triangle consists of 2 contracts:
  • between employee and temp agency
  • between agency and the customer
• ideas: temp work provides
  • flexibility for the customer
  • long-term employment for the employee
  • spread between payment paid by customer and received by employee for the agency

Question 13

employment for foreigners

Answer 13

• no restriction: citizen of EU, Iceland, Norway, Switzerland, Liechtenstein
• citizens of some countries may accept a job if no German applicant is available
• ‘third’ countries:
  • graduates / academies: application for blue card is available
  • graduates of German university: no restriction within field of studies
  • after vocational training

Question 14

collective wage agreement

Answer 14

• many industries are subjected to CWA between unions and employers’ association
• “declaration of general applicability” makes application mandatory for non-members
• multi unions can be active within one firm
• industry wise minimum wage, work conditions, vacations, special replacements for general law