The Lobby Register Act has been in effect in Germany for nearly two years, and the related register has been a hot topic since its inception. The objective is to monitor who is attempting to sway political decisions and legislation, and by what means. The “Act amending the Lobby Register Act”, approved by the German Federal Council at the end of 2023, will take effect on March 1, 2024. It brings significant changes for lobbyists, particularly concerning the obligation to disclose financial information. Reveal interactions with employees and committees Previously, interest groups were only obl ..read more

The German Act on the Modernization of Partnership Law (MoPeG) symbolizes a reform in partnership law, striving to establish a contemporary and legally secure regulatory framework for partnerships in Germany. It has been labeled as “the work of the century” in the German Bundestag, as it fundamentally and extensively overhauls the pertinent laws for the first time since their inception. The extensive modifications to the law will take effect on January 1, 2024. It is therefore prudent to examine the relevant articles of association to determine if amendments are necessary. Increased transpare ..read more

What is the Blue Card? The EU Blue Card, comparable to the American green card, is a unique residence permit for qualified employees wishing to work in Germany. Any foreign employee can apply for the Blue Card. Since November 18, 2023, some procedures and requirements for applicants have been streamlined. High-demand professions: lowered salary limit for Blue Card The primary requirement for obtaining an “EU Blue Card” (hereafter “Blue Card”) is achieving a specific salary threshold. Previously, a pre-tax salary limit of EUR 58,400.00 was required. The Act on the Further Development of Skille ..read more

Repeatedly, employees express dissatisfaction with their references. They may subsequently request their employer to revise the reference. If a reference is justifiably requested to be changed, the employer must not alter the content of a previously issued reference, including the thank-you and closing formulas at the end of the reference, to the employee’s disadvantage without valid reason. Doing so breaches the prohibition of reprimands under labor law. However, there is no right to a thank-you and closing formula in the reference. Employee criticizes absence of thank-you formula The Brauns ..read more

Since July 1, 2023, the Whistleblower Protection Act (Hinweisgeberschutzgesetz, HinSchG) mandates that companies with over 250 employees establish secure channels for reporting misconduct. This requirement will be extended to companies with more than 50 employees as of December 17, 2023. External ombudspersons are independent The law differentiates between internal reporting offices, which are established by the company itself, and external reporting offices, which are run by state authorities. The staffing of an internal hotline, specifically whether it’s managed by an in-house representativ ..read more

In their professional capacities, managing directors of a GmbH (limited liability company) are subject to numerous liability risks due to their position of authority. As such, they can be held directly liable by the company’s creditors – with their personal assets, immediately and directly. These risks emerge, in particular, from a labor law perspective, as a managing director is responsible for ensuring compliance with employer obligations and mandatory regulations under German labor law. One such mandatory regulation is the obligation to pay the statutory minimum wage, which is set at 12 eu ..read more

Having already presented the ideal company sale from the seller’s point of view, we would now like to look at the company purchase from the buyer’s point of view. Agreement on purchase conditions Once the target company has been identified, the seller has been approached and has shown interest in selling the company or the company shares, the next step is to agree on the main terms of purchase. These should then not only be exchanged verbally or by e-mail, but, if there is already agreement at this early stage, should be set out in writing in a letter of intent (LOI, also known as term sheet ..read more

The equal pay principle is a crucial prerequisite for temporary employment relationships in Germany. In these arrangements, temporary workers are assigned to the hiring company for a specified period to perform work according to the employer’s instructions. This principle ensures that temporary workers receive remuneration at the same level as the comparable permanent workforce of the hiring company. Nonetheless, temporary agency workers typically receive lower pay than permanent employees under collective agreements. In a ruling on May 31, 2023 (Case number: 5 AZR 143/19), the German Federal ..read more

After a slight delay and minor issues in the legislative process, the Whistleblower Protection Act is now on its way. Starting July 2023, the mandates of the European Whistleblower Directive (Directive (EU) 2019/1937) will be implemented in Germany as well, necessitating prompt action from numerous organizations. Whistleblowers should be protected To encourage whistleblowers to report potential violations or related suspicions without fear of reprisal, the proposed Whistleblower Protection Act aims to grant them appropriate protection. Companies must establish appropriate reporting channels f ..read more

Employers seeking to assign their employees to customers who intend to employ them within the framework of a service contract must make all contractual agreements clear in advance in order to avoid unintentionally slipping into unauthorized employee leasing. As it is, the contractual agreement for such assignments can determine whether the employee assignment takes place within the framework of a service or work contract or as an employee leasing. When is this employee leasing? Employee leasing occurs if the employee is assigned by the employer to a hirer, integrated into the hirer’s operatio ..read more