Kategorie: Politics Law Society

BAG clarifies obligation to log working hours in Germany According to a ruling of Germany“s Federal Labour Court (BAG) from September 13, 2022, employers in Germany should already be systematically keeping records of the number of hours worked by their employees (case ref.: 1 ABR 22/21). Previously, the obligation to keep track of working hours only extended to overtime and work on Sundays. We at the commercial law firm MTR Rechtsanwälte can now report, however, that with the Court having found that a general obligation to track working hours already…

BAG rules on exceeding the maximum assignment duration for temporary agency workers Temporary agency workers can be recruited for more than 18 months if the relevant collective bargaining agreement contains provisions to this end. That was the verdict of Germany“s Federal Labor Court (BAG) in a judgment from September 14, 2022 (case ref.: 4 AZR 83/21). While German law stipulates a maximum assignment duration for temporary workers of 18 months, we at the commercial law firm MTR Rechtsanwälte can report that the Court“s recent ruling provides for the possibility of…

BGH weighs in on terminating commercial lease agreements with immediate effect The tenant has the right to terminate a commercial lease agreement with immediate effect if there are serious grounds for doing so. According to Germany“s Federal Court of Justice (BGH), this includes an incorrect service charge statement (case ref.: XII ZR 11/20). We at the commercial law firm MTR Rechtsanwälte note that both the tenant and the landlord are entitled to summarily terminate a commercial lease with immediate effect if there are serious grounds that justify this course of…

BGH opines on authorized dealer“s claim for compensatory adjustment Commercial agents and authorized dealers are not entitled to information concerning the gross profit of the principal for the purposes of calculating their claim for compensatory adjustment. That was the verdict of Germany“s Federal Court of Justice (BGH) in a ruling from September 24, 2020 (case ref.: VII ZR 69/19). Claims for compensatory adjustment are a common point of contention between commercial agents, or authorized dealers, and their clients (a.k.a., the „principal“). Section 89(b)(1) of the German Commercial Code (HGB) stipulates…

Buyer of a bankrupt business in self-administration not liable for existing obligations According to Germany“s Federal Court of Justice (BGH), a party purchasing a commercial business going through self-administered bankruptcy is not liable for the existing obligations incurred in the operation of the business (case ref.: II ZR 457/18). Section 25(1) sentence 1 of the German Commercial Code (HGB) provides that the buyer of a commercial business shall be liable for the obligations of the seller if the business is carried on under the previous name. However, following a recent…

New Vertical Block Exemption Regulation enters into force Companies have had to adapt to the changes to distribution law brought about by the revised rules in the EU“s new Vertical Block Exemption Regulation (VBER), which, together with the new Vertical Guidelines, has been in force since June 1, 2022. The Regulation sets out when restrictions on competition are permitted and when they are prohibited. We at the commercial law firm MTR Rechtsanwälte note that the legislation is particularly relevant to distribution agreements. Article 101(1) of the Treaty on the Functioning…

New rules for T&Cs in Germany 2022 saw a number of changes introduced to German contract law, some of which came into force at the beginning of the year, while others became operative later on. We at the commercial law firm MTR Legal Rechtsanwälte can report that the changes have implications for, among other things, the manner in which general terms and conditions are drafted. Businesses must ensure that their T&Cs are legally compliant. One of the key areas addressed by the revised rules is contract terms and notice periods…

Avoiding imminent threat of bankruptcy thanks to new corporate restructuring legislation Germany“s Corporate Stabilization and Restructuring Act (StaRUG), which came into force at the beginning of 2021, makes it easier for ailing companies to reorganize without having to go through bankruptcy. Many companies have been hit hard by the effects of the coronavirus pandemic, interrupted supply chains, and rising energy prices, with some being forced to question the ongoing economic viability of their businesses. By passing the Stabilization and Restructuring Act, we at the commercial law firm MTR Rechtsanwälte can…