Significant Legal Changes in Labor Law
- IG-TAX
- Feb 18
- 3 min read
In 2024, significant legal changes in labor law were introduced, which we would like to highlight once again. These include the right to multiple employment, new regulations on training, further education, and professional development, as well as adaptations to the employment contract.
Content:
Right to Multiple Employment
There is now a statutory right to dependent multiple employment. This applies even to full-time employees, meaning that an employee may simultaneously enter into employment relationships with other employers. Any contrary agreements in existing employment contracts are now generally invalid.
The employer may only prohibit multiple employment if:
a) it is incompatible with working time regulations (i.e., a total of more than 12 working hours per day or more than 60 working hours per week), or
b) it is detrimental to the existing employment relationship (e.g., conflicts of interest, potential disclosure of trade secrets, competition in the same industry).
The employment contract may still include an obligation to notify the employer in advance of any intended secondary employment. A comprehensive non-compete clause may also be established.
This right to multiple employment applies only to genuine employment relationships. Independent (secondary) activities are not covered and may still be prohibited in the employment contract.
Training, Further Education, and Professional Development
If a specific training, further education, or professional development measure is a prerequisite for performing a contractually agreed-upon job, the following applies as of March 28, 2024:
The employee's participation in this educational measure is considered working time.
The costs of such educational measures must be borne by the employer.
Previously, training time was already considered working time, and the employer was responsible for covering the costs if the employee was required to undergo training by the employer. The new regulation now focuses on whether a specific educational measure is a "prerequisite for performing a contractually agreed-upon job." The measure must be necessary concerning the employee’s contractually defined tasks.
Tip: Employers should consider whether specific training, further education, or professional development requirements arise from the job profile or agreed-upon career and development goals when drafting employment contracts .
It remains unclear whether cost reimbursement agreements (i.e., requiring employees to repay training costs if they leave the company prematurely) are permissible for training programs covered by the employer's cost obligation. This issue will be clarified by future court rulings.
The employer is not required to cover costs for:
a) acquiring a vocational qualification for a future (different) job (e.g., training for a different profession), or
b) training, further education, or professional development completed before the employment contract was signed (previous educational measures).
Changes Regarding Position Specification Statement ("Dienstzettel")
The changes regarding position specification statements apply only to those concluded on or after March 28, 2024. The position specification statement, which the employer must provide to the employee in writing (or electronically upon request) immediately after the start of employment, must now include additional mandatory information. The position specification statement must now contain the following details (new requirements in bold):
Name and address of the employer,
Name and address of the employee,
Start date of the employment relationship,
End date for fixed-term employment contracts,
Notice period, termination date, and reference to the applicable termination procedure,
Usual place of work (or indication of changing workplaces if applicable), company headquarters,
Any classification into a general pay scale,
Intended job role and a brief description of the work to be performed,
Base salary or wage amount, additional compensation components such as bonuses or overtime pay, due dates, and payment method,
Annual paid leave entitlement,
Agreed daily or weekly normal working hours, including any conditions for shift schedule changes,
Reference to any applicable collective agreements, statutes, minimum wage tariffs, apprenticeship compensation, or works agreements, and where they are available for review within the company,
Name and address of the employee’s social security provider and company pension fund (BV Fund), or, for employees covered by the Construction Workers' Leave and Severance Pay Act (BUAG), the name and address of the Construction Workers' Leave and Severance Pay Fund,
Duration and conditions of an agreed probationary period,
If applicable, entitlement to employer-provided training.
If a written employment contract containing all required information is provided, a separate position specification statement is not necessary. Position specification statements (or written employment contracts) must also be issued for fixed-term contracts of less than one month. Failure to provide the position specification statementmay result in a fine of € 100 to € 436, or € 500 to € 2.000 if more than five employees are affected.
Tip: As part of annual HR reviews, it is advisable to check employment documentation for compliance with these new labor law regulations. If you have any questions or need assistance, please contact our experts Irene Grass or Martin Schmidt.
Foto: Wixmedien
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