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Following long debates: the government enacts the law promoting transparency in remuneration structures

Following long debates: the government enacts the law promoting transparency in remuneration structures

Following the introduction of the statutory minimum wage (01/01/2015), the additional parental benefits (01/01/2015) and the gender balance for management positions (01/01/2016), which also serve to reduce the differences in remuneration between women and men, it is now the intention that an act promoting transparency in remuneration structures (EntgTranspG) will ... Read More »

Restructuring and notification of mass dismissals with regard to labor law

Restructuring and notification of mass dismissals with regard to labor law

“Fear, paranoia, insecurity.” With this apocalyptic triangle, Rose Beauchamp, Stephen Heidari-Robinson and Suzanne Heywood describe in their article Reorganization without Tears the environment in which the reorganization of companies takes place. And in this article they are only referring to the non-legal aspects of change processes. A quick glance at ... Read More »

The European Company (SE)

The European Company (SE)

Societas Europaea (“SE”) A legal form that’s also for the Mittelstand! The European company, also referred to as “SE” because of its Latin name “Societas Europaea,” is a relatively new legal form that is gaining popularity among German companies. After large Dax companies such as Allianz, BASF, Fresenius and Porsche ... Read More »

GmbH or AG – what are the differences?

GmbH or AG – what are the differences?

Many foreign entrepreneurs establish a subsidiary in Germany, frequently choosing a Kapitalgesellschaft (company) for liability and tax reasons. The most familiar forms of company in German law are the Aktiengesellschaft (AG), or public limited company and the Gesellschaft mit beschränkter Haftung (GmbH), or limited liability company. Both are autonomous legal ... Read More »

Dutch civil-law notary cannot execute a deed under German law

Dutch civil-law notary cannot execute a deed under German law

On the basis of two rulings by the German Bundesgerichtshof from 1981 and 1989, the belief arose that deeds under German law can be executed by civil-law notaries not practising in Germany. In particular, it would be possible to transfer shares in German companies or incorporate legal entities under German ... Read More »

Online traders take note: the EU Commission’s online dispute resolution platform

Online traders take note: the EU Commission’s online dispute resolution platform

Online dispute resolution platform Regulation (EU) No. 524/2013 on online dispute resolution for consumer disputes has directly applied in all EU Member States, including Germany, since January 2016. The Regulation applies only to online trade with consumers by companies headquartered in Europe (i.e. not in Switzerland, China or the USA). ... Read More »

Negotiated contract clause and General Terms and Conditions of Business

Negotiated contract clause and General Terms and Conditions of Business

National legal systems routinely contain special provisions to be used for evaluating General Terms and Conditions of Business (GTC), and German law is no exception. Clauses that qualify as general terms and conditions of business are automatically subject to this rigorous scrutiny. If they do not withstand scrutiny, they are ... Read More »

The termination agreement – Key aspects under German labour law

The termination agreement – Key aspects under German labour law

There are many reasons why, in individual cases, the parties to an employment contract wish to part company or one party unilaterally terminates the employment relationship. One possible reason is the avoidance of dismissal proceedings, which entail risks for both parties. Alternatively, the parties may wish to quickly and smoothly ... Read More »

Company practice

Company practice

No entitlement to paid smoking breaks based on company practice (Higher Labor Court Nuremberg, decision of August 05, 2015 – 2 Sa 132/15) In many firms employers allow for working time to be broken up without requiring employees to work extra hours or reducing the claim to remuneration accordingly. No ... Read More »

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