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News from labor market policy and employment law

Adjustments to labor law and new labor market policy decisions have a significant impact on working conditions and present companies with complex challenges. It is particularly helpful for small and medium-sized companies in the mechanical and plant engineering sector to be informed about current developments in order to operate safely within a constantly changing legal framework.

In order to provide targeted support to companies in the mechanical and plant engineering sector in North Rhine-Westphalia, ProduktionNRW hosted a virtual information event on 29 October 2024 that focused on current topics in employment law and labor market policy. In addition to insights into the latest case law, participants received practical advice on legal innovations as well as comprehensive information on the employment of pensioners and a legal classification of cannabis legalization in the workplace.

Current labor market policy decisions

Fabian Seus, lawyer in the VDMA’s Legal Department and Head of the Competence Center Labor Market, began by explaining the latest developments in federal labor market policy. Particular emphasis was placed on the Fourth Bureaucracy Relief Act (BEG IV), which aims to further reduce the bureaucratic burden on companies. The measures include:

  • The obligation to provide evidence of essential working conditions in text form,
  • the option of submitting employment references electronically, and
  • the electronic provision of statutory notices, for example for working time regulations.

The legal framework for the employment of pensioners was also highlighted as a possible measure against the shortage of skilled workers. Various models and challenges for continued employment beyond retirement age offer companies new options: from continued employment with unchanged conditions, reduced working hours and fixed-term contracts to permanent contracts without a retirement clause.

The collective bargaining round in the metal and electrical industry is also currently in the spotlight. While IG Metall is demanding a wage increase of 7% over a 12-month period, employers are currently offering 3.6% over 27 months. A VDMA survey showed that 30 percent of companies are bound by collective agreements, while 70 percent do not, often due to concerns about a lack of flexibility. Nevertheless, 66 percent of companies not bound by collective agreements are guided by collective agreements or their components.

Current case law and effects on company practice

Dr. Christian Hess, a lawyer from the VDMA’s legal department, presented current labour law rulings, which also referred to earlier proceedings. For example, a ruling by the Baden-Württemberg Higher Labor Court (LAG) on unequal pay between the sexes: If it is established that an employee was paid less in terms of remuneration components than the comparison group of the other gender for the same or equivalent work, the employer must prove that only reasons other than gender led to the disadvantaged pay.

Other rulings included the case law of the Düsseldorf Higher Labor Court, which ruled on the duty to provide information in Google searches of applicant data, or the ruling of the Duisburg Labor Court, which dealt with the unauthorized charging of private vehicles at the workplace.

Cannabis legalization and its effects in the workplace

With the Consumer Cannabis Act (KCanG), which came into force in April 2024, the possession and consumption of small amounts of cannabis is permitted for adults under certain conditions in Germany. This raises new questions under labor law: Companies can prohibit the consumption of cannabis on company premises, similar to alcohol, with a zero-tolerance limit possible in safety-relevant areas. In addition, company agreements can be adapted to explicitly regulate the consumption of cannabis during working hours and on company premises.

Drug testing remains a sensitive issue and may only be carried out in particularly safety-relevant areas or in cases of reasonable suspicion. The legalization of cannabis thus brings with it new regulatory requirements for companies, which should be taken into account in company agreements and regulatory guidelines.

Organizer

The event was organised by ProduktionNRW. ProduktionNRW is the cluster for mechanical engineering and production technology in North Rhine-Westphalia and is organised by VDMA NRW. ProduktionNRW sees itself as a platform for networking, informing and marketing companies, institutions and networks with each other and along the value chain. Significant parts of the services provided by ProduktionNRW are subsidised by the Ministry of Economic Affairs, Industry, Climate Protection and Energy of the State of North Rhine-Westphalia.

Further information:
  • A DGUV FAQ on “Cannabis legalization and its significance for safety and health at work – answers to frequently asked questions”
  • A DGUV position paper “ZERO alcohol and ZERO cannabis at work and in education”.
  • Consumption bans can be viewed at www.bubatzkarte.de