Facts and Procedural Development
In the proceedings with the file number 8 AZR 117/24, currently pending before the Federal Labor Court (BAG), the legal assessment of the termination of an employment relationship, taking into account collective and statutory provisions, is at the forefront. The case was submitted to the 8th Senate of the BAG after the Hamburg Regional Labor Court (LAG), under the file number 6 Sa 57/23, had previously recommended further review. The lower instance primarily addressed the question of which requirements must be met for the justification and enforcement of a termination by the employer in light of collective bargaining provisions and any relevant European law requirements.
Key Legal Issues
Significance of Collective Bargaining Protection Against Dismissal
The core of the legal dispute lies in the interpretation and applicability of collective bargaining dismissal protection provisions, which often go beyond the statutory protection provided by the Dismissal Protection Act. Such provisions may, for example, establish longer notice periods, extended obligations for justification, or additional participation rights for employee representatives.
In the present proceedings, it is being examined to what extent the collective bargaining provisions may apply in the given context, and whether these may possibly conflict with higher-ranking law, such as constitutional requirements or principles of Union law. It must also be considered whether and to what extent existing opening clauses in the collective agreement are applicable.
Judicial Review and Procedural Issues
Another aspect concerns the scope of judicial review of such dismissals. It is significant whether the BAG regards the requirements stipulated in the collective agreement as exhaustive, or whether additional requirements may be derived from general principles of employment law. In particular, the principle of equal treatment and the required degree of transparency must not be overlooked. It is also relevant how intensively the labor courts must examine the justification of a dismissal by the employer in the event of a dispute.
Finally, such case constellations often also raise procedural legal issues: For example, to what extent and under what preconditions there is a claim to continued employment, or which rights of an employee representation are to be safeguarded in the proceedings.
Practical Relevance
Implications for Companies and Employees
The decision of the BAG provides important guidance for companies regarding the structuring and enforcement of dismissals subject to collective bargaining regulations. Employees benefit from clarification of the requirements under which legal proceedings against dismissal may have prospects of success.
The significance of the decision therefore extends to the entire spectrum of collectively agreed employment relationships and potentially sets a precedent beyond the individual case, particularly regarding legal certainty and predictability for HR decisions.
Relation to European Legal Standards
It is also a significant issue whether relevant European law requirements—such as those from Directive 2000/78/EC on the implementation of the principle of equal treatment—or the application of international labor law are affected. This is always the case when national or collective regulations fall short of Union law standards and potential discrimination is subject to employment law review.
Outlook
The decision of the Federal Labor Court in proceedings 8 AZR 117/24 will—depending on the outcome—likely set recognized standards for the handling of collective protection against dismissal arrangements and strengthen legal certainty for both employers and employees. Companies, investors, and high-net-worth individuals operating in Germany or across borders should closely monitor developments, as collective and statutory provisions can have complex effects on employment relationships and their termination.
Anyone whose company or investment activities touch on employment law issues may consider consulting experienced lawyers, for example at MTR Legal Rechtsanwalt, for more in-depth legal questions on this subject.
