Labor Law for Private Employers
Are overtime disputes arising, is a termination pending, or does your business need to restructure? You need solutions that are legally sound and practical for day-to-day operations. As specialist lawyers in labor and employment law, we help you identify risks early, weigh your options, and prepare for decisions. Find out what matters when it comes to contracts, personnel conflicts, and organizational changes.
Clearly regulate employment contracts, remuneration, and working hours.
A template contract saves time and effort only if it suits your business. Ambiguous clauses regarding duties, the place of work, or fixed-term arrangements can limit your flexibility later on. We draft and review employment contracts, supplementary agreements, and written statements of employment terms. In doing so, we take into account mandatory protective regulations and applicable collective bargaining laws, while assessing which provisions are transparent, legally valid, and practical to implement in day-to-day operations.
Variable compensation and overtime can quickly lead to retroactive claims if targets, approvals, or deadlines remain unresolved. We assist you in establishing transparent compensation models and reviewing existing commitments. Blanket settlement clauses or delayed target setting can give rise to significant risks. Clearly defined responsibilities and timely decisions help you avoid disputes regarding performance and payments.
Flexible working hours require reliable boundaries—including when working from home. We review time-tracking, breaks, rest periods, and the handling of overtime. Together, we develop rules regarding working-time accounts, availability, and mobile work. If a works council exists, we incorporate its right of co-determination. This ensures that contractual requirements, actual workflows, and your managers' responsibilities are all aligned.
Working Hours: Questions and Answers
Designed for works councils, staff councils, and employees. Also helpful for employers in understanding issues regarding time tracking, overtime, mobile work, and employee participation from the employees' perspective.
View the book at the publisher's website ↗Align contract templates with actual practice: Who authorizes overtime, who reviews time accounts, and when are goals set? Document responsibilities in writing. Have fixed-term provisions and new remuneration clauses reviewed before signing, rather than waiting until a claim arises.
Frequently asked questions about contracts and working hours
Is a template contract from the internet sufficient?
A template can serve as a starting point but does not replace a proper review. Pre-drafted clauses are subject to legal limits and must be clear and understandable. Duties, remuneration, collective bargaining provisions, and documentation requirements should be tailored to your specific employment relationship.
What needs to be considered regarding a fixed-term arrangement before work begins?
Verify the objective justification or the admissibility of a fixed-term contract without objective justification, as well as any prior employment and the required form. In principle, the agreement on the fixed term must be concluded in the proper form before work commences. Extensions, too, can fail due to incorrect timing or contract modifications.
Can all overtime be covered by the salary?
A blanket clause with no discernible scope is generally problematic. Whether and how a limited form of compensation can be effectively agreed upon depends on the wording, the remuneration, and other requirements. Minimum wage and working time limits must still be observed.
Do we need to track working hours under a trust-based working time arrangement?
In principle, yes. "Trust-based working time" does not exempt the employer from the obligation to record the start, end, and duration of daily working hours. The task of documentation may be delegated to employees; however, the organizational responsibility remains with the employer. Statutory exceptions must be assessed on a case-by-case basis.
Does every recorded hour of overtime result in additional compensation?
Not automatically. Time recording and entitlement to remuneration are separate issues. Key factors include, among other things, the remuneration policy and whether the additional work was ordered, approved, tolerated, or necessary for the performance of duties. Records and approvals should remain traceable.
Can we unilaterally end remote work?
This depends on the employment contract, any supplementary agreement, the works agreement, and the specific circumstances. Check for a valid revocation or reassessment clause and consider the balancing of interests. The employer's right to issue directives does not permit arbitrary changes to bindingly agreed employment conditions.
Resolving personnel conflicts and
preparing for terminations
Repeated breaches of duty, performance issues, or prolonged absences place a strain on the team and operational workflows. However, the appropriate response depends on the specific circumstances. We assist you in lawfully establishing the facts, documenting incidents, and conducting necessary discussions. In cases of misconduct, we evaluate the use of formal warnings and less severe measures; in cases of illness, we address workplace reintegration management (BEM) and potential workplace adjustments.
If a termination is being contemplated, we clarify issues regarding protection against dismissal, the grounds for termination, and potential alternatives. This includes special protection against dismissal, notice periods, and the consultation of an existing works council. Even in small businesses, termination is not permitted at will. We verify the written form, authorization to represent, and proper service of notice to ensure that a substantively justified measure does not fail due to avoidable procedural errors.
An amicable separation can be a sensible option, but it does not happen automatically. We draft termination agreements and negotiate terms—including severance pay, release from work duties, vacation entitlements, and employment references—based on fair negotiation principles. In the event of a wrongful dismissal lawsuit, we represent your interests and assess litigation costs as well as potential risks regarding remuneration and continued employment. This provides you with the basis for deciding between litigation and a settlement.
Create a factual chronology and secure documentation in a legally compliant manner. Record exactly when the person authorized to issue the termination notice became aware of specific facts. In the event of a potential summary dismissal, the assessment of time limits should begin immediately—not only after all internal discussions have concluded.
Frequently Asked Questions About Formal Warnings and Termination
Do we need a formal warning before every termination?
No. However, in cases of culpable misconduct, a relevant formal warning is generally required. Exceptions may apply, for instance, in cases of particularly serious breaches of duty. Illness does not constitute conduct warranting a formal warning; different criteria apply in such cases.
When must we offer a BEM (workplace reintegration management) process?
In principle, this applies in cases of more than six weeks of continuous or repeated incapacity for work within a single year. Participation is voluntary. Failure to conduct a required BEM (workplace reintegration management) process does not automatically render a dismissal invalid, but it typically makes it more difficult to prove that no less severe measures were available.
Does protection against dismissal apply in a small business as well?
General protection against dismissal typically applies only after six months and in establishments with more than ten qualifying employees; transitional rules may differ. Regardless of this, provisions such as special protection against dismissal, prohibitions on discrimination, notice periods, and the requirement for the written form apply.
What time limit applies to a summary dismissal?
In principle, two weeks from the date on which the person entitled to give notice of termination becomes aware of the decisive facts (§ 626 para. 2 BGB). Necessary investigations, hearings, and special protective procedures require a careful assessment of the individual case. Unnecessary delays carry risks.
Does the works council have to consent to a termination?
As a general rule, a proper hearing is required, not his or her consent. An objection does not automatically prevent the termination but can have consequences for continued employment. Special cases, such as the termination of works council members, must be examined separately.
Do we always have to pay severance in the event of a separation?
No, there is no general entitlement to severance pay upon termination of employment. Such claims may arise, for instance, from agreements, social plans, or specific statutory provisions. During negotiations, litigation risks, the date of termination, and other potential claims must be assessed collectively.
Proactively shaping co-determination and restructuring
New software, AI applications, or modified shift schedules often affect the works council's rights. We assess the need for consultation and involvement before you set a binding launch date. For technical systems, specific attention is paid to functions and data analysis capabilities. We assist you with works agreements regarding usage, data access, and monitoring—while clearly distinguishing these from additional data protection obligations.
Relocation, outsourcing, or workforce reductions require coordinated planning. We assess whether a change in operations is involved and support the process of informing and consulting the works council. During negotiations, we distinguish between the reconciliation of interests regarding the planned change and the social plan designed to mitigate economic disadvantages. We assess legal obligations, costs and time requirements before implementation creates facts.
Even a coordinated overall strategy does not replace the need to examine individual measures. We address transfers, contract amendments, opportunities for continued employment, and—in cases of redundancy—the social selection process. Additionally, we assess whether a transfer of undertakings or a mass redundancy requiring official notification is involved. This enables you to prepare for employee involvement, necessary procedures, and communication in a sound, logical sequence.
Before implementation, prepare an overview of the affected establishments, positions, and contract modifications. Track planned terminations—including employer-initiated mutual termination agreements—occurring within a 30-day calendar period. Have thresholds and consultation obligations reviewed prior to making binding commitments.
Frequently Asked Questions About the Works Council and Changes
Is every new piece of software subject to co-determination?
Not every implementation automatically falls under the same legal provision. In the case of technical systems, the mere objective capability to monitor behavior or performance can trigger co-determination rights. Examine functions, data, and conditions of use—including for pilot projects and updates.
What should be done if no works agreement is reached?
In cases of mandatory co-determination—such as matters falling under Section 87 of the Works Constitution Act (BetrVG)—the conciliation committee may issue a decision. Jurisdiction and the subject matter of the regulation must be clarified in advance. Time pressure does not substitute for a required agreement or for the statutory procedure for replacing such an agreement.
When can a restructuring constitute a change in operations?
For instance, in the event of a shutdown, relocation, or fundamental reorganization entailing potential significant disadvantages for the workforce. Section 111 of the Works Constitution Act (BetrVG) generally applies to enterprises with more than twenty employees eligible to vote. The specific measure, thresholds, and competent body must be examined in each case.
What distinguishes an agreement on the balancing of interests from a social plan?
The agreement on the balancing of interests concerns the decision on whether, when, and how an operational change is to be implemented; its conclusion cannot be enforced. The social plan is intended to compensate for or mitigate economic disadvantages and can be enforced under statutory conditions. A mandatory attempt to reach an agreement may not be bypassed.
Can any workforce reduction be implemented freely without a works council?
No. Even without a works council, provisions such as protection against dismissal, social selection criteria (where the Dismissal Protection Act applies), and potential notification obligations regarding mass redundancies remain in effect. The thresholds are based on specific employee numbers and the number of dismissals within a 30-day period.
What aspects require particular scrutiny in the case of outsourcing?
A transfer of an undertaking pursuant to Section 613a of the German Civil Code (BGB) may exist. In such cases, employment relationships may transfer by operation of law; rights to information and objection must be observed. Termination of employment solely on the grounds of the transfer is invalid. However, not every outsourcing arrangement meets these criteria.
A clear next step.
Please outline your matter and any upcoming deadlines. We will clarify the scope of the engagement and any potential conflicts of interest before accepting the mandate.
Legal Notice: This information does not replace a case-by-case assessment. Key factors include, in particular, employment status, the structure of the business, applicable collective bargaining law, and the specific measure involved.
