Expert blog

The discussion surrounding sick leave in Germany has sparked a new debate on employment law: the federal government plans to make it compulsory to submit a certificate of incapacity for work (AU) from the very first day of illness. One of the aims of the proposed new regulations is to improve the documentation of absences and to curb the misuse of sick leave. However, the exact details are yet to be finalised. For businesses, this raises the question …

Commercial tenancy agreements often bind businesses for many years and can have significant financial implications. Unlike residential tenancy law, commercial tenancy law offers greater flexibility in drafting terms. This is precisely why it is worth taking a close look at the contractual provisions before signing. What may seem like a minor detail at first glance can later lead to significant costs, termination options or …

Flexible remuneration models are becoming increasingly important within companies. Alongside traditional salary components, special payments, bonus schemes and additional time off are playing an ever-greater role as part of modern remuneration systems. Employers aim to offer their employees attractive yet flexible working conditions through these arrangements. However, in its judgement of 25 February 2026 (Ref. 5 AZR 22/25), the Federal Labour Court (BAG) set out important guidelines for the conversion of special payments into time off …

A company’s name, logo and product name shape its market presence. Start-ups, in particular, invest a great deal of time and money in building a brand – yet the legal protection of these marks is often only considered at a later stage. However, a strong brand can represent considerable economic value even in the early stages of a business. Those who take steps early on to ensure clear …

Since the rulings of the European Court of Justice (ECJ) and the Federal Labour Court (BAG), the recording of working hours has been one of the most hotly debated topics in employment law. For many companies, the question arises as to what obligations already exist today and how legally compliant time recording can be implemented in practice. Even though new legislation is still pending, this by no means means that employers are still free to delay the introduction of a system …

As soon as external service providers handle personal data, a fundamental question arises under data protection law: is this a case of data processing on behalf of a controller? In this case, a data processing agreement (DPA) is generally required under Article 28 of the GDPR. It is therefore important for organisations to systematically record their service providers and the data processing activities they carry out, and to classify them correctly from a legal perspective. What is data processing on behalf of a controller? Data processing on behalf of a controller occurs when a service provider processes personal data on behalf of an organisation in accordance with the organisation’s instructions. …

Limitation periods (also known as time-barring periods) are a standard feature of many employment contracts. They ensure that claims arising from the employment relationship must be brought within specific time limits. In this way, they provide legal certainty and prevent claims from being brought years after the employment relationship has ended. In practice, however, limitation periods are often worded incorrectly. The result: the entire clause may be invalid …

Contractual penalties are intended to ensure compliance with key contractual obligations and, where possible, to prevent breaches of contract before they occur. In the business world in particular, they are a frequently used tool for strengthening contractual compliance and avoiding protracted disputes over damages incurred. In practice, however, contractual penalty clauses are often worded in too general or overly broad terms. The result is that, in the event of a breach, the …

The summer months are the traditional holiday season. Many employees would like to take several weeks’ holiday in one go or make the most of the school holidays with their families. For employers, this regularly raises the question of whether such a holiday request must be granted or whether operational reasons preclude a longer absence. In fact, under holiday law, there is no unrestricted right on the part of the employee to choose their holiday dates …

Many companies rely on their general terms and conditions (GTC) in their day-to-day business. Whether in supply contracts, service contracts or framework agreements, GTC are intended to streamline processes and reduce legal risks. In the event of a dispute, however, it often transpires that individual clauses are invalid or that the GTC have not even become a valid part of the contract in the first place. Clear legal principles also apply in this regard to commercial dealings between businesses …

The written warning is one of the most important tools in employment law when employers wish to respond to breaches of duty by employees. At the same time, it is one of the most common sources of error in proceedings relating to protection against unfair dismissal. This is because an incorrect warning letter, or a failure to issue one, can render a subsequent dismissal on grounds of conduct invalid. Employers should therefore be fully aware of when a warning letter is required, what requirements it must meet and …

In any business acquisition, a fundamental question arises at an early stage: is the business to be acquired as a whole, or should only individual assets be purchased? Behind this decision lie two different transaction structures – the share deal and the asset deal. Which option is the right one depends on the financial objectives, the existing risks and the tax framework of the individual case. The choice of …

Terminating an employment relationship is one of the most challenging tasks in employment law. Employers are often faced with the decision as to whether the employment relationship should be terminated by giving notice or by means of a mutual termination agreement. Although both options lead to the same outcome – the termination of the employment relationship – they differ significantly in terms of their legal requirements, their practical implementation and the associated risks. Which option …

Between two funding rounds, start-ups often require fresh capital at short notice. However, completing a full investment round at this stage often involves considerable time and expense. In such situations, a convertible loan offers a flexible form of bridge financing. It enables a rapid injection of capital without the need to determine a definitive company valuation at this stage. What is a …

The probationary period allows employers and employees to determine whether a long-term working relationship is feasible. During this phase, both parties get to know one another and can assess whether their mutual expectations are being met. However, if an employee falls ill during the probationary period, this often gives rise to uncertainty. Can the probationary period be extended? Is it permissible to terminate the contract on grounds of illness? And what …

The acquisition of a business is a far-reaching business decision. Whether the investment will pay off in the long term depends largely on a thorough review carried out in advance. This structured review process is known as due diligence. It serves to identify opportunities and risks at an early stage and to make informed decisions regarding the purchase price, the drafting of contracts and potential liability risks. Particularly in the case of larger transactions, …

Reports of legal breaches or malpractice within a company can be uncomfortable for employers – yet at the same time, they offer an opportunity to identify risks at an early stage and avert damage. The Whistleblower Protection Act (HinSchG) has significantly strengthened the protection of whistleblowers in Germany. Companies therefore face the challenge of reconciling whistleblower protection with their employees’ duties of loyalty under their employment contracts. Those who design internal processes in a legally compliant manner, …

When setting up a company, many shareholders initially focus on the articles of association. Whilst these form the legal basis of the company, in practice they only regulate some of the issues relating to collaboration that are actually relevant. Particularly when several shareholders are making business decisions together over the long term, issues frequently arise that are only inadequately addressed – or not at all – in the articles of association …

Not every instance of below-average work performance immediately justifies disciplinary action under employment law. At the same time, persistent underperformance can place a significant financial burden on companies. Employers are therefore often faced with the question of when poor performance becomes a legally relevant issue and under what conditions dismissal on grounds of poor performance is possible. When does poor performance become legally relevant? In principle, employees are not obliged to achieve the maximum possible level of success, …

The General Equal Treatment Act (AGG) protects job applicants and employees from discrimination on the basis of certain personal characteristics. At the same time, companies are repeatedly confronted with job applications where the focus is not on actually taking up the post, but on potential claims for compensation. In this context, the term „AGG-hopper“ is frequently used. For employers, the question arises as to how such cases should be classified legally and how allegations of discrimination …

An update to the AGG: Greater protection against discrimination The General Equal Treatment Act (AGG) has for years formed the basis for protection against discrimination in the workplace and under civil law. However, a reform is currently under discussion which aims to further expand this protection and bring it into line with European requirements. It is worth employers taking an early look at the …

Case study from our consultancy practice: Conflict between shareholders successfully resolved Conflicts between shareholders are among the most common and, at the same time, most sensitive challenges in day-to-day business life. The situation becomes particularly critical when operational decisions are blocked or the relationship of trust is permanently damaged. An anonymised case study illustrates just how crucial a structured legal solution can be. The initial situation: In a medium-sized company, a situation arose …

How much personal business is allowed during working hours? Rights and limits for employees In everyday working life, the boundaries between work and personal matters are becoming increasingly blurred. A quick message, a phone call or arranging an appointment – many things are dealt with „on the side“. Employers are therefore regularly faced with the question: What is permitted during working hours – and where …

Dispute resolution in commercial law: the pros and cons of mediation versus court proceedings Commercial disputes cannot always be avoided in day-to-day business operations. Disputes between business partners, shareholders or contracting parties can have significant financial implications and often tie up considerable time and resources. It is therefore not only a company’s legal position that is crucial, but also the question of how conflicts can be resolved effectively …