Employment and Labor Law

Management employment law refers to the right of executives from their own employment relationship with their employer

Although senior managers and executives work at higher levels of a company’s hierarchy, they are still – in contrast to managing directors and board members, who form the organs of a company – classified as employees. While senior managers and executives do play a special role within this group, their job titles do not have special legal significance, and legislators pay their roles little attention.

Senior managers and executives are special contractual partners in an advantageous negotiating position, and this should be adequately reflected in their employment contracts. They are required to set an example and represent the employer’s interests in their dealings with employees. They are also required to represent the employer to others outside the organization.

As authors of the “Rechtshandbuch Führungskräfte” [Legal Handbook for Executives] we know the subject better than almost anyone else, and can provide advice on the following issues:

• Drafting and negotiating employment contracts for senior managers and executives
• Contractual performance requirements and possible breaches of contractual obligations
• Identifying and, where necessary, legally enforcing variable remuneration
• Drafting and negotiating termination agreements, including claims for severance pay
• Background advice and representation in termination disputes
• Drafting legally secure contracts in relation to work performed for multiple group companies
• Employee data protection
• Company pension schemes

Do you serve as an executive for several companies in a group of companies? Do you have dual status as an employee in one company and a board member in another? If so, you too should familiarize yourself with the special contractual arrangements and liability risks of executives, in order to avoid coming face-to-face with legal disadvantages.

Whether specific working time regulations, remuneration agreements or employment contracts – we establish company working conditions aimed at providing you, the employer, with optimal flexibility and legal security.

We advise on the subject of protection against dismissal, the structuring of legally secure organizations, possible disputes regarding the involvement of works councils, and many other issues. We serve as your strategic partner in the event of major restructuring resulting in downsizing, closures or the reorganization of work processes. Other focal points of our work in employment law for employers are:

• Outsourcing and business transfers
• Drafting and termination of employment and service contracts
• Matters relating to the Works Council Constitution Act
• Drafting and negotiation of works agreements
• Design and introduction of flexible compensation models
• Design and implementation of compliance systems
• Collective bargaining law
• Personnel leasing
• Secondment
• Handling of senior and non-tariff employees
• Discrimination, bullying and harassment

The contractual relationships between managing directors or board members and the companies for which they work are often complex. On the one hand, managing directors and board members are appointed as organs of the company and are not regarded as employees; on the other, there is a contractual relationship with the company which is, in principle, legally independent of this.

As experienced labor law specialists, we are familiar with the pitfalls and peculiarities of service contract law affecting managing directors and board members. As such, before you are appointed as a managing director or board member, we will advise you on the drafting of your future employment contract, your rights and obligations, all remuneration agreements and the termination of your managing director or board member contract. We can also support and represent you in the event of a legal dispute.

In our day- to-day practice, we have found that issues regarding the liability of managing directors and board members are on the rise. Individuals in these positions are being sued more frequently than ever before for damages for alleged breaches of duty. In such cases, we can oversee the proceedings in close coordination with the respective D&O insurer. We provide comprehensive advice on the following areas of service contract law (employment law for managing directors and board members):

• Drafting and negotiation of service contracts and managing director appointment contracts
• Suitability and structure of total compensation
• Design of performance-related, flexible remuneration instruments (bonuses, profit-sharing bonuses, stock options, target agreements, etc.)
• Retirement benefits
• Advice and support regarding the termination of the contractual relationship (dismissal, termination, resignation of the managing director or executive board member)
• Preventive liability avoidance
• Protection against indemnity and compensation claims

As labor law specialists, we represent both employers and employees – which is why. we offer negotiation experience from every perspective and can provide skilled comprehensive advice. While the focus of labor law for employees lies inevitably on the right of termination and the negotiation of termination agreements, we can also advise on the following issues:

• Enforcement of claims for part-time work
• Issues of contractual employment
• Legal issues with return from parental or nursing leave
• Review of employment contracts
• Representation in dismissal protection proceedings
• Enforcement of remuneration claims, in particular variable remuneration
• Advice and support in the event of workplace bullying and harassment
• Enforcement of claims for damages in the event of violations of the General Equal Treatment Act (AGG)
• Employee data protection
• Company pension scheme

As experienced employment lawyers, we know how oppressive litigation can be and understand your situation. Our team will be available to advise you personally at all times and to serve as your expert partner in all questions of labor law for employees.

Your strategic partner for sustainable solutions

We create flexible and legally secure framework conditions for works councils, trade unions or employers’ associations to fully enforce rights as a collective.

In this relationship, it is precisely the diverging interests that require not only legal expertise, but also an awareness of the need to deal sensitively with the other party to the company. With negotiating experience from both perspectives, we are your strategic partner for this. One of the key areas of advice provided by our team is assistance in negotiations with works councils and trade unions as well as advice on occupational pension law.

Only if you know your rights in collective labour law can you perform your duties as a representative effectively. We support you in all aspects of collective employment law, with particular emphasis on business considerations, including:

• Support with complex works council tasks
• Scope, compliance or enforcement of the works council’s manifold participation and co-determination rights
• Conception and negotiation of company agreements
• Proper resolutions
• collective bargaining issues

We also offer regular in-depth training on current topics or legal innovations in collective labour law.