Background and context of the proceedings
On March 19, 2024, the Federal Labor Court (BAG) under case number 3 AZR 298/24 was required to rule in a legal matter involving the admissibility of a statutory referral. The parties in the proceedings are disputing before the Labor Court of Braunschweig, particularly regarding the correct interpretation and application of social security regulations in relation to labor law and potential aspects of European law.
The BAG’s decision involves submitting a legal question to the Court of Justice of the European Union (CJEU). The relevant question concerns an interpretation significant under EU law, so that European case law can exert a decisive influence on domestic proceedings. This once again demonstrates the close interrelationship between German labor law and the requirements of Union law, especially in the context of the protection of social rights and prohibitions of discrimination.
Relevant issues in dispute
Referral to the CJEU and EU law reference
The subject of the referral order is the question requiring clarification of whether certain national regulations relating to occupational pensions are compatible with European standards—particularly those regarding prohibitions of discrimination and legal protection of equality at work. Central to this is the interpretation and application of requirements from European directives. The specific reason for the initial proceedings concerns a lawsuit whose substantive legal assessment depends on the interpretation under EU law.
Significance for occupational pension schemes
The decision is of particular interest to both companies and employees, as it may impact the structuring and implementation of occupational pension schemes. Should the CJEU find that the relevant national provision is not compatible with applicable European directives, this could lead to significant adjustments both in existing pension systems and in future arrangements. This equally affects issues of equal treatment and the practical handling of occupational pension claims.
Effects on German labor law
The significance of the referral to the CJEU goes beyond the individual case at hand. The obligation to make a decision under EU law will affect both court practice in future cases and advisory practice in the fields of labor and social insurance law. For companies and institutions, this may require a review of previous practices with respect to designing company regulations that are free of discrimination.
Status of proceedings and further developments
In view of the referral to the CJEU, the proceedings before the Federal Labor Court are suspended. A final decision will not be made until after the CJEU has rendered its preliminary ruling. Should the Court of Justice of the European Union adopt the referral questions, this may necessitate adjustments for various companies in handling occupational pension schemes.
It should be noted that, as of the time of publication, the proceedings have not yet been concluded; the final legal position remains subject to the decision by the CJEU and subsequently to the final judgment of the Federal Labor Court.
Consideration for companies and affected individuals
In light of the potential outcomes of the pending decision, it is advisable for companies and organizations with links to employment law to continuously monitor the progress of proceedings and the forthcoming decisions. Investors and high net-worth individuals with business interests or shareholdings may also gain important insights for future planning and contract structuring through the clarification of EU law issues.
Once the final decisions have been published, it will become apparent whether and to what extent adjustments may need to be made to internal company guidelines and pension regulations.
Source of information and legal notice
The preceding statements are based on the publication of the decision by the Federal Labor Court (available at: bundesarbeitsgericht.de/entscheidung/3-azr-298-24). This is an ongoing procedure which, at the time of this summary, had not yet been finally decided. The presumption of innocence applies and it is noted that all representations reflect the current status of proceedings and are subject to ongoing developments.
Discretion and legal support
For more complex questions concerning occupational pensions, prohibitions of discrimination in labor law, or the effects of decisions under EU law, the lawyers at MTR Legal are happy to provide qualified assistance.
