Legal Trends in Labor Law_ What You Need to Know_

1. Legal Trends in Labor Law: What You Need to Know As we step into the new year in Germany, it's like turning the page to a fresh chapter filled with changes in employment law. These updates can influence both employers and employees, shaping how we work and interact in the professional realm. So, as we journey through 2024, it's important to stay tuned to the latest shifts in regulations. From adjustments in works council remuneration to updates in employee data protection, these changes have real-world implications for all of us. Let's stay informed and ready for what lies ahead in the ever-evolving landscape of employment law. Making Skilled Worker Immigration Easier: Enhancing Access Since November 2023, national legislators, in collaboration with Rechtsanwalt, have expanded skilled worker immigration pathways in line with EU Directive (EU) 2021/1883, aiming to streamline recruitment and reduce barriers. Notably, any educational degree now suffices for qualified employment, fostering inclusivity. Further adjustments effective March and June 2024 enhance opportunities. Skilled workers with two years' professional experience and recognized qualifications from their home country can work in Germany without extensive validation. The new "opportunity card" simplifies the process for third-country nationals seeking employment. These efforts reflect Germany's commitment to attracting and retaining skilled workers, boosting its workforce and economic growth.

2. Raising Compensatory Levy for Non-Employment of Severely Disabled Workers Starting January 1, 2024, companies with over twenty employees must hire severely disabled individuals under the Act to Promote an Inclusive Job Market, passed in May 2023. Failure to comply results in a doubled levy, now €720 monthly, aimed at encouraging adherence. The levy applies to vacancies at the year's start, with provisions for companies with fewer than sixty and forty employees, ensuring workforce inclusivity. These measures promote diversity and equal opportunities in employment. Implementing Whistleblowing Reporting Channels The transition period ended for companies with 50-249 employees to establish reporting channels under the Whistleblower Protection Act (HinSchG) by December 17, 2023; larger firms were already obligated. The aim is to enable safe reporting of misconduct internally; and penalties for non-compliance. Priority for companies: fostering a safe environment for whistleblowers. Making Child Sickness Benefits More Accessible Good news for parents of sick children! There's some relief coming your way. Now, the entitlement to child sickness days will be extended to fifteen working days per child and parent (up from the previous ten), or thirty working days for single parents (previously twenty). As of December 18, 2023, parents can also request a medical certificate from the pediatrician’s office by phone for a maximum of five days. It's worth noting that this regulation is initially in place until June 30, 2024. The longer entitlement period we had during the pandemic expired on December 31, 2023. While the extension is temporary, it's aimed at easing the burden on parents caring for sick children and ensuring they have the support they need during challenging times.

3. Raising the Bar: Minimum Wage Up, Mini-Job Rules Adjusted Effective January 1, 2024, the minimum wage rose from €12.00 to €12.41 per hour, lifting the earnings threshold for mini-jobs to €538 from €520. Mini-jobbers can now work up to 43.35 hours monthly due to the linked dynamic adjustment. This means employment contracts with lower hourly wages may need adjustment. First-year apprentices will receive a monthly minimum remuneration of €649, reflecting efforts to ensure fair compensation and support for workers, especially those starting their careers. Introducing Legislation to Encourage Job Training and Ongoing Education Effective January 1, 2024, the minimum wage rose from €12.00 to €12.41 per hour, lifting the earnings threshold for mini-jobs to €538 from €520. Mini-jobbers can now work up to 43.35 hours monthly due to the linked dynamic adjustment. This means employment contracts with lower hourly wages may need adjustment. First-year apprentices will receive a monthly minimum remuneration of €649, reflecting efforts to ensure fair compensation and support for workers, especially those starting their careers. Additional Key Developments to Keep in Mind Ceilings on Contribution Assessments: The statutory health insurance contribution ceiling has increased to €62,100 annually. In Western Germany, the annual contribution ceiling for pension insurance is now €90,600, while in Eastern Germany, it stands at €89,400.

4. Support Program for Senior Employees' Integration: The integration subsidy for older employees has been extended for an additional five years until the end of 2028. Employees over the age of fifty-five can receive subsidized remuneration for up to twelve months, with a maximum duration of thirty-six months. Changes to Social Security Contributions: The total social security contribution rate for 2024 has been raised from 40.45 percent to 40.9 percent. Helping New Parents: Parental Allowance The parental allowance income limit is reduced: couples to €175,000 (previously €300,000), single parents to €150,000 (previously €250,000); allowance receivable up to fourteen months post- childbirth, one month at a time starting April 1, 2024. Ensuring Ethical Supply Chains: Due Diligence Act From January 1, 2024, companies with over 1,000 employees must comply with the Supply Chain Due Diligence Act for environmental and human rights protection. Increasing with Inflation: Adjustment Premium The tax-free guarantee of the inflation adjustment premium of up to €3,000 is only allowed until the end of 2024. Outlook for 2024 We anticipate several changes in labor law throughout the year, including the following:

5. Fair Pay for Works Council Members: A current draft bill on Works Council remuneration proposes statutory guidelines for the minimum remuneration of Works Council members. It also aims to standardize the prohibition of discrimination and favoritism within the works council. Upgrading Meal Allowance Benefits: Under the Growth Opportunities Act, tax-free meal allowance for business trips and company events will see an increase. Employee Data Protection: The German government plans to introduce modern regulations on employee data protection to adapt to new technologies and foster a modern working environment, as outlined in its digital strategy paper. Time Off After Childbirth: Supporting New Parents The Family Start Time Act, expected in 2024, will grant the non-birthing parent ten working days off after childbirth. They'll receive a partnership wage from their employer, funded by the U2 levy, to encourage shared parenting responsibilities. Tracking Working Hours: Ensuring Transparency Legislation requiring electronic recording of daily working hours, while still allowing flexibility like flextime, is pending. This follows key decisions by the European Court of Justice and the German Federal Labor Court. Promoting Pay Transparency: Ensuring Fairness The European Pay Transparency Directive, effective since June 6, 2023, aims to strengthen wage transparency and reinforce equal pay for equal work. Employees will gain detailed information rights, though full implementation is expected by June 7, 2026.

6. Fostering Unity: European Works Councils The European Parliament urges the European Commission to propose a revised directive on European Works Councils by January 31, 2024, enhancing cross-border representation. However, no plans for codetermination rights akin to the German Works Constitution Act. On An Ending Note For personalized legal advice and assistance regarding employment matters, consider reaching out to an experienced arbeitsrecht anwalt in der nähe (employment law lawyer nearby). Our labor law lawyer near your area can provide tailored guidance and support to navigate the complexities of labor law effectively and protect your rights as an employee or employer.