German Labour Law Faces Dual Pressure: AI Bias Lawsuit Against Meta and Sweeping Working-Time Overhaul

Twenty-six former Meta employees have filed an emergency motion in a US federal court, alleging that the company used artificial intelligence to systematically discriminate against parents during mass layoffs. The complaint, lodged on 13 July in the Northern District of California, targets two rounds of job cuts — one in May 2024 and another in May 2026 — in which, the claimants argue, automated performance scores played a decisive role.

Those scores, according to the plaintiffs, were derived from tracking keyboard activity, internal chat-system data usage, and browser histories. Women on maternity leave and staff on parental leave were allegedly penalised by the algorithm. Meta has denied the accusations, stating that no automated AI decisions determined who was let go. The case highlights a growing tension: within the European Union, the use of artificial intelligence for dismissal decisions will soon be classified as high-risk, triggering strict compliance obligations and steep fines for violations.

While that lawsuit unfolds across the Atlantic, Germany’s Federal Ministry of Labour and Social Affairs (BMAS) is pushing ahead with a fundamental revision of the country’s Working Time Act. A draft bill proposes replacing the current daily maximum working hours with a weekly cap, allowing up to 48 hours per week on average over a year — provided this is arranged through collective bargaining agreements. A central pillar of the reform is mandatory electronic time recording, to be phased in over staggered deadlines: one year for all companies after the law takes effect, two years for businesses with fewer than 250 employees, and five years for micro-enterprises with fewer than 50 staff. Firms with ten or fewer workers would be exempt. Germany’s Federal Labour Court (BAG) had already ruled in September 2022 that employers are fundamentally obliged to systematically record working hours; the new legislation will now specify the technical requirements. Additionally, shortened rest periods must be compensated immediately.

Just as German employers face new obligations to systematically record working hours, UK companies must ensure they have proper health and safety documentation in place – or risk heavy fines. A free Health & Safety Toolkit provides ready-to-use risk assessments, checklists, and templates that help you meet your legal duties under UK regulations. Download the free Health & Safety Toolkit

Parallel to these regulatory shifts, several financial adjustments came into force on 1 July. The monthly attachment exemption limit — the amount of earnings protected from seizure by creditors — rose to €1,587.40, a value that will remain valid until 30 June 2027. Pensions increased by 4.24 per cent at the same time. For the scaffolding trade, a new summer compensation scheme kicked off on 1 May: the so-called Sommerausfallgeld (SAG) entitles workers to 75 per cent of their hourly wage when weather — heat, wind or rain — prevents work. The benefit is capped at 50 hours per year, applies from May to August, and is reimbursed via the industry’s social fund, SOKA-Gerüst. An evaluation of the measure is scheduled by 30 June 2027.

European case law is also reshaping workplace rules. A recent judgment from the European Court of Justice (case C-110/24) establishes that employer-ordered group journeys to changing work sites count as full working time — a decision with significant implications for the construction, trades, and field-service sectors. Meanwhile, holiday entitlement calculations vary by employment model: for mini-jobbers, the annual leave is based on the actual number of working days per week. In the care sector, the Nursing Working Conditions Ordinance (PflegeArbbV) grants employees up to nine additional vacation days per year, a regulation that remains in force until 30 September 2028.

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