When is the works council’s consent required for the engagement of managers in matrix organizations?

Where managers are employed by one group company but perform their duties in the organization of another group company, their engagement in the receiving organization may be subject to co-determination under section 99(1) sentence 1 of the German Works Constitution Act (Betriebsverfassungsgesetz – “BetrVG”). In a decision dated January 27, 2026 (Federal Labor Court, 27.01.2026...

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Employment law

Works council may exercise full co-determination rights for the time being despite foreign affiliation

The Berlin-Brandenburg Regional Labor Court has confirmed in an interim injunction that the works council of an airline elected at Berlin Brandenburg Airport (BER) may provisionally exercise its co-determination rights under works constitution law—despite the airline’s headquarters being located abroad and the unresolved final classification of the stationing location as an organizational unit eligible for...

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Employment law

Revocation of the right to work from home: Limits of management’s authority

An order requiring an employee who works half the time from home to report to the workplace in person from Monday through Thursday is legally invalid. The key point is that a stricter requirement to be present at the workplace cannot be justified simply by citing the withdrawal of a “work-from-home privilege,” but rather requires...

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Employment law

A general refusal of more than two weeks’ vacation is not permitted

A general restriction of annual leave to a maximum of two consecutive weeks violates Section 7(2), sentence 1 of the Federal Vacation Act (BUrlG). Splitting the leave is permissible only for specific, urgent operational or personal reasons; a general shortage of staff is not sufficient. Vacation may also be granted in summary proceedings if there...

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Employment law

Trade secrets: The necessity of appropriate protective measures

If a company wishes to place its trade secrets under the protection of the Trade Secrets Act (GeschGehG), it must take appropriate measures to protect those secrets. The higher the value of the trade secret, the more effective the protective measures must be. This was decided by the Baden-Württemberg Regional Labor Court in its ruling...

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Employment law

Challenging a works council election

Digital platform work involving delivery drivers does not automatically mean that a separate works council can be elected in every delivery area: The Federal Labor Court clarifies the requirements for organizational units eligible for a works council in app-based work models (BAG January 28, 2026 – 7 ABR 23/24). Facts of the case The ruling...

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Employment law

Pseudo-self-employment on German construction sites

Construction workers who are employed on construction sites to perform simple tasks, receive an hourly wage, and do not appear to be entrepreneurs on the market are generally classified as dependent employees. This was decided by the Hesse Regional Social Court (LSG). Facts of the case In its ruling of February 20, 2025 (L 8...

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Employment law

Equal treatment principle – wage increase despite rejection of the new contract

Employers may not restrict voluntary wage increases across the board to employees with new contract templates. If no valid objective reasons for unequal treatment can be given, employees with old contracts are also entitled to the pay increase. This was clarified by the Federal Labor Court in a recent ruling (judgment of November 26, 2025...

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Employment law

ECJ ruling on mass redundancy notifications – Strict requirements under German law remain in place, legislators called upon to act

The German implementation of the Mass Redundancy Directive (EU) is also in line with European law with regard to its consequences for the legal validity of employer terminations! In two judgments handed down on October 30, 2025, the European Court of Justice (ECJ) answered key questions on mass redundancy notifications, thereby providing important clarifications that...

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Employment law

“Hands off” registered mail

Unlike the former registered mail with peel-off label, the new digital registered mail is no longer suitable as prima facie evidence. This is the result of a decision by the Hamburg Regional Labor Court (July 14, 2025 – 4 SLa 26/24). Facts The Hamburg Regional Labor Court had to rule on the validity of a...

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Employment law

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