In its decision dated August 31st, 2026 (Case No. 9 TaBV 38/26), the Cologne Regional Labour Court (Landesarbeitsgericht, LAG Cologne) ruled that a conciliation committee (so-called “Einigungsstelle”) established to attempt to reach a reconciliation of…
A visit to a café, a hairdresser’s appointment during working hours, a side job whilst working from home. And the worst part is: it works. At least for a while. Working time fraud is arguably the most creative field of activity for some employees – and since the boom in working from home, it has experienced a real renaissance. We take a look at what’s really been going on, what the courts have to say about it, and what employers can do to ensure that their staff’s creativity is channelled into their work rather than into making excuses.
The EU Pay Transparency Directive (EU) 2023/970 (“Pay Transparency Directive”) will have a noticeable impact on re-cruitment processes. Applicants gain a right to early information on the level of pay. Questions about previous pay will be prohib-ited. And selection processes will have to be strictly gen-der‑neutral. Transposition into national law is required by 7 June 2026. It is already worthwhile for employers to prepare.
Since 6 June 2023, the EU Pay Transparency Directive (PTD) has tightened the framework for equal pay and requires employers to provide significantly more transparency, documentation and cooperation with workers’ representatives. This moves workplace co-determination into focus: the Directive supplements existing rights to information and co-determination under the Pay Transparency Act and the Works Constitution Act with reporting obligations and a joint pay assessment.
As part of our series on pay transparency, this article situates current and future obligations and highlights what employers should be paying attention to in workplace co-determination now.
From 1 January 2026, the general social security contribution rates will remain largely stable, but the contribution assessment ceilings and the average additional contribution to health insurance will increase. This will lead to higher contributions overall, especially for higher incomes and for employees who voluntarily opted for the statutory health insurance.
Companies with 150 or more employees must already report for the year 2026
In companies that regularly employ less than ten people (known as ”small businesses”) in Germany, the Unfair Dismissal Protection Act does not apply. Terminations are therefore subject to fewer requirements. However, the fact that the Unfair Dismissal Protection Act does not apply does not mean that terminations in small businesses always go smoothly. Even outside the scope of the act, there are provisions and principles that can render terminations invalid and that employers should therefore be aware of in advance and during the termination process.
What are the common mistakes from an employment law perspective made by US companies operating in Germany?
In 2025, there will be a major change in the contribution assessment ceilings for pension and unemployment insurance: the last different contribution ceilings in eastern and western Germany have finally been abandoned and uniform national values now apply in all insurance branches.
The average additional contribution in statutory health insurance will rise to 2.5% - a significant increase of 0.8 percentage points.