Expert blog

Liability of managing directors: common liability risks and how these can be minimised The role of the managing director is associated with far-reaching responsibility. In addition to entrepreneurial decisions, there are also personal liability risks - often underestimated and with considerable financial consequences. Growing companies and start-ups in particular often lack a clear structure to systematically manage these risks. Why managing director liability ...

Attracting skilled labour: What forms of employment are available to employers The shortage of skilled labour poses challenges for many companies. In addition to traditional recruiting, alternative forms of employment are becoming increasingly important. A strategic selection can help to increase flexibility and cover personnel requirements in a targeted manner. Overview of forms of employment Companies can utilise various models: Each form has its own legal requirements. Permanent vs. ...

With the EU AI Act (AI Act), the European Union is creating a comprehensive legal framework for the use of artificial intelligence for the first time. This raises a key question for companies: what specific requirements apply - and how can the use of AI be made legally compliant? What is the EU AI Act? The EU AI Act is a European regulation that regulates the use of ...

ESOP vs. VSOP: Which employee participation scheme is right for your start-up? Employee share ownership schemes are a key instrument for attracting and retaining skilled labour in the long term. Models such as ESOP (Employee Stock Option Plan) and VSOP (Virtual Stock Option Plan) play a particularly important role in start-ups. But which model suits which company phase? What are ESOP and VSOP? ESOP ESOP: Employees receive real or future company shares. VSOP ...

Data protection & AI in the company: Legal risks and opportunities when using AI The use of AI tools is steadily increasing in companies - from automated processes to data-driven decisions. This raises a key question: How can the use of AI be reconciled with data protection requirements? Why data protection plays a central role in AI ...

Employment references without disputes: How employers avoid disputes Employment references are one of the classic points of contention in labour law. Unclear wording or misleading assessments often lead to requests for corrections or legal disputes. Structured and legally compliant preparation can significantly reduce such conflicts. Why employment references often lead to disputes Conflicts often arise as a result: The potential for conflict is particularly high in the case of dismissals. Legal guidelines: What an employment reference ...

Employment contracts for start-ups: important clauses for young companies Employment contracts are often drawn up pragmatically and under time pressure, especially in the start-up phase. They are a key instrument for creating clear structures, expectations and legal certainty. For start-ups, it is particularly important to draft typical areas of regulation clearly at an early stage - also with a view to growth and scaling. Why employment contracts ...

EU Pay Transparency Directive: risks and opportunities for companies The EU Pay Transparency Directive will impose new requirements on employers in the coming years. The aim is to increase pay transparency and ensure equal pay. The directive has been in force since June 2023 and member states have until 7 June 2026 to transpose it into national law. For companies, this not only means additional ...

External legal department (Legal-as-a-Service): Why flexible legal outsourcing pays off Many companies face the challenge of managing legal issues efficiently without having to set up their own legal department. This is where the Legal-as-a-Service model comes in. It enables access to legal expertise - flexible, demand-oriented and scalable. What is Legal-as-a-Service? Legal-as-a-Service describes the outsourcing of legal services to external partners. Typical services are This involves ...

BAG on sick leave from abroad: same evidential value, just as shakable The question of the evidential value of a certificate of incapacity for work issued abroad is a recurring issue in labour law practice. The Federal Labour Court (BAG) clarified this in its ruling of 15.01.2025 - 5 AZR 284/24: In principle, a foreign sickness absence certificate also has the same evidential value as a sickness absence certificate issued in Germany. For employers, however, this means ...

Forms of financing for start-ups: What models are available and what is legally important Building on the classic venture capital rounds, many founders are faced with the question: Which form of financing is the right one for the respective phase? In addition to classic equity investments, various models have become established in practice, each of which has its own special legal features. Equity financing The classic form ...

Evidential value of the certificate of incapacity for work: when employers may have doubts and how to act correctly The certificate of incapacity for work is a key instrument in everyday working life. It serves as proof that an employee is unable to work due to illness. For employers, however, the question arises time and again: Is a certificate of incapacity for work unassailable - or can it be doubted? The answer is differentiated. In principle, the AU ...

Venture capital basics: What founders should know about financing rounds from a legal perspective For many start-ups, venture capital is a key building block on the path to growth. However, the first financing round at the latest raises not only economic but also legal questions. From the pre-seed phase to Series A, the requirements and structures can differ considerably. For founders ...

EU Directive 2025/2450: New rules for the European Works Council - need for action for companies EU Directive 2025/2450 modernises the requirements for the European Works Council (EWC) and strengthens participation rights at European level. For internationally active companies, it is worth addressing the new requirements at an early stage in order to ensure that existing processes are legally compliant and fit for the future. What is the European Works Council ...

Contract tips: Drafting NDAs correctly - effectively protecting expertise and business secrets Sensitive information often needs to be exchanged, especially during collaborations, investor meetings or initial project negotiations. This includes business strategies, technical developments or key economic figures. A non-disclosure agreement (NDA) creates the legal framework to protect confidential information and establish a clear basis for discussions. At the same time ...

The works council in the company - a practical overview The works council is a central organ of co-determination in the company and influences many personnel and organisational decisions in the company. It is important for employers to understand the role, rights and cooperation with the works council in order to act in a legally compliant and efficient manner. This overview shows the most important basics in practice. What is ...

Corporate housekeeping: checklist for clean corporate governance in start-ups Corporate housekeeping sounds formal - but it is a key building block for investor readiness, liability avoidance and exit readiness. Especially in the growth phase, founders understandably focus on the product, market and financing. Company law formalities quickly fade into the background. However, this is precisely where typical risks arise. Clean corporate governance ...

Working despite retirement: How to continue working after retirement Demographic change and the ongoing shortage of skilled labour mean that more and more employees want to continue working after retirement. For companies, the so-called active pension opens up the possibility of keeping experience and expertise in the company for longer. In legal terms, this is not a separate statutory model, but rather ...

The civil law partnership (GbR) is the simplest form of partnership in accordance with Sections 705 et seq. BGB (GERMAN CIVIL CODE). It is formed when at least two people join together to pursue a common purpose. For start-ups, it can be a quick way to get started - but legally and economically ...

Minimum wage increases - mini-job limit has been adjusted: What employers need to consider The mini-job limit was adjusted on 1 January 2026: the previous monthly limit of 556 euros was raised to 603 euros. The increase in the statutory minimum wage therefore also has a direct impact on marginal employment relationships. For employers, this not only results in a need for arithmetical adjustments, but also ...

The UG (haftungsbeschränkt) as a start-up legal form: opportunity or interim solution? The UG (haftungsbeschränkt) is often referred to as the „little sister“ of the GmbH. For many founders, it is the entry into the limited liability company structure - especially with limited start-up capital. But is the UG a strategic model or merely a preliminary stage to the GmbH? Basic structure of the UG: Limited liability with limited capital ...

Labour Market Reinforcement Act - What is really behind „More work pays“ With the Labour Market Reinforcement Act, the legislator is pursuing a clear goal: to create more incentives to work, increase employment and make work more financially attractive. Tax, social security and labour market policy instruments are to be readjusted under the political motto „More work pays“. But what does this mean in concrete terms for employers - and where ...

Foundation vs. choice of legal form: Guide for start-ups - when is a GmbH the right choice? The choice of legal form is a strategic decision for every start-up. After providing an overview of the common legal forms in the last article, we will now take a closer look at the decision factors - with a special focus on the GmbH as the central legal form for growth-oriented start-ups. ...

The 2026 works council election is approaching. The following applies to employers: structured and legally compliant preparation helps to avoid mistakes and reduce the risk of legal challenges. Even small omissions in the process can make the works council election contestable and cause unnecessary conflicts. Employer obligations vs. neutrality requirement The employer has a clear role in the works council election: it must facilitate the election in organisational terms, but must not influence it. This includes providing rooms, material resources and ...