HSP Group is committed to informing you about the ever-evolving landscape of global employment law. We understand that staying updated on legislative changes is crucial for your business operations.
Below, you’ll find an overview of the recent employment law updates in Germany and the United Kingdom. We highlight the key changes and offer recommendations on navigating these developments effectively.
Employment Law Updates for Germany
Currently, when an employee makes a claim against dismissal, the case takes several months through the German courts. If successful, the employer must pay the employees outstanding remuneration that they would have been paid throughout the litigation process. This includes any interest on the arrears if they were out of work during this time.
Current protections are in place to mitigate employees deliberately and ‘maliciously failing to obtain’ work during the litigation period. The burden of proof lies with the employer, however, which is practically very difficult. To mitigate these claims, employers have paid large severance packages.
Recent court judgments have now determined that employers have greater rights to challenge claims for outstanding remuneration during litigation. The courts ruled that employers can demand information from the employee on the placement proposals submitted by the employment agency and the job center and become proactive themselves and make the dismissed employee reasonable job offers.
In light of this recent case law, we recommend that employers ensure that they are being proactive. This will help bolster their argument against outstanding remuneration should they find themselves in a position to defend these claims in the future. The steps include:
Interim Reference Letters
Companies must provide an interim reference letter to employees being terminated for operational reasons (redundancy) at the same time as, or shortly after, the termination letter. This means the employee has a reference available to them without delay so that they can commence their job search as soon as possible. A German-compliant reference letter must be drafted in line with a specific standard, format, and grading system and must be in German. We therefore recommend seeking guidance to ensure that the reference letter meets the required standard.
Job Advertisements
Proactively send suitable job advertisements to the employee, referencing the Federal Labor Court 7 February 2024 judgment 5 AZR 177/23. Accurate records of job adverts and when they are sent to the employee should be kept.
Regular Requests for Jobseeker Notifications
The employer should regularly request the employees’ jobseeker notification and the job center’s placement attempts. Employers should also check employees’ disclosed job applications in detail.
Please note that only employees working for an employer with over ten employees and over six months of continuous service can make a claim under the German Protection Against Unfair Dismissal Act. Claims must be made within three weeks of the employee’s termination. In our experience, a number of employees who do not strictly meet these criteria still submit a claim. Therefore, we recommend that all companies with local German employees familiarize themselves with the above legal updates.
How HSP Can Support You
HSP will be happy to advise and support any German termination processes to ensure compliance with Germany’s strict termination procedural requirements and the recommended post-termination steps outlined above, including a legally compliant reference letter.
United Kingdom Updates
Following a few turbulent years, the UK electorate voted for a new Labour Government, which will replace the current Conservative Party government, the primary governing party in power since 2010. Labor has proposed several employment law updates and committed to implementing an Employment Bill within their first 100 days in office. Some of the key changes proposed include:
- Ban on ‘zero hours’ contracts.
- Implement a two-category employment status framework consisting of ‘Self Employed’ and ‘Workers.’ Currently, there are different definitions of worker and employee, meaning that all ‘workers’ will be entitled to the same employment rights (e.g., sick pay, family leave, holiday pay).
- Prohibit ‘fire and rehire’ practices, which employers may impose when employees do not agree to contractual changes to their employment terms.
- Right to Disconnect law implemented.
- Reduce the length of service required for Unfair Dismissal claims from two years to one year.
- Increase the time limit on employment tribunal claims from three to six months.
These changes signify one of the most significant changes to employment legislation in the UK for over a decade. Practically, employers will need to audit their UK employment policies, contracts, and practices to ensure they meet the new legislative requirements.
Worker Protection (Amendment of Equality Act 2010)
From October 2024, the Worker Protection (Amendment of Equality Act 2010) will come into force. The Labour Party has not indicated that it will rescind the Act, but its final version may change employer obligations under the Act. The Act requires employers to take reasonable steps to prevent sexual harassment of their workforce.
Employers will have a duty to adopt appropriate policies and procedures to prevent sexual harassment and to report and investigate any harassment allegations effectively.
In addition, employers will need to continuously monitor and review the effectiveness of their policies and the gender demographic of their workforce to identify any potential discriminatory practices and adopt appropriate measures to eliminate these.
Appropriate training should also be provided to employees and managers in a way that suits their roles and responsibilities in the organization.
Tribunals will be able to uplift compensation for employees who make a successful claim of sexual harassment by 25% where an employer has been found to not comply with their obligations under the Act.
How HSP Can Support You
HSP can provide guidance and assistance in reviewing current policies and procedures or creating new policies for your UK workforce. HSP can also provide training or refresher training for UK employees.
