Mass Layoff Notices Must Wait Until Consultation Ends, German Court Says
23.06.2026 - 22:24:51 | boerse-global.de
Employers who file mass layoff notifications before concluding talks with the works council risk permanent invalidation of every dismissal – a defect that cannot be cured later, Germany’s Federal Labour Court (BAG) ruled in two judgments dated 1 April 2026 (Az. 6 AZR 157/22 and 6 AZR 152/22). The decisions tighten procedural requirements for mass redundancy processes, particularly in workplaces with 21 to 59 employees where more than five terminations within 30 days trigger notification duties.
The BAG made clear that a notification to the Federal Employment Agency is void if submitted before the consultation procedure with the works council has ended. Attempts to file a corrected report after the fact do not salvage the original errors. The consequence: every dismissal in that mass layoff remains permanently ineffective.
Late Goal-Setting on Bonuses Can Cost Employers the Full Payout
A separate ruling from 22 April 2026 (Az. 10 AZR 28/25) reinforces the importance of timing in bonus agreements. The court awarded a claimant the remainder of her bonus – €8,339.40 – after her employer communicated the relevant company targets for 2022 only in 2023. While the employee had fully met her personal targets, the employer scored the company-related goals at just 49 percent. The maximum possible bonus was €16,351.78.
The BAG reasoned that late target-setting triggers a claim for damages, typically equal to the maximum achievable bonus. Communicating objectives on time is now considered a core contractual duty of the employer.
Parental Leave Protection Restarts With Each Leave Period
A decision handed down on 18 June 2026 (Az. 2 AZR 213/25) strengthens job security for parents. The special protection from dismissal under Germany’s Parental Allowance and Parental Leave Act (Bundeselterngeld- und Elternzeitgesetz) begins anew before each individual period of parental leave, even if the employee has already notified multiple leave periods in a single application. The protection applies during a mutually agreed probationary period as well.
No Blanket Two-Week Cap on Consecutive Holidays
In March 2026, the Thuringia Regional Labour Court (Landesarbeitsgericht Thüringen, Az. 4 Ta 15/26) struck down a company rule that limited consecutive vacation to a maximum of two weeks. Longer holiday blocks may only be denied if urgent operational reasons justify the restriction.
Planned Overhaul of Working-Time Rules
A draft bill from the Federal Ministry of Labour, published in June 2026, proposes greater flexibility in daily maximum hours. Where collective agreements permit, a weekly cap on working time could replace the current daily limit, and the mandatory 11-hour rest period could be waived. The draft also introduces a requirement for electronic time recording on the same day work is performed. Transition periods are staggered: one year for most companies, two years for firms with fewer than 250 employees, and five years for those with fewer than 50 staff.
Higher Minimum Wage and New Minijob Threshold
From 1 January 2026, the statutory minimum wage rose to €13.90 per hour, with a further increase to €14.60 scheduled for 2027. The minijob earnings limit was set at €556 per month. Courts have also clarified that employer-organised group transport from a base to the worksite counts as full working time if the effective hourly wage would otherwise fall below the minimum wage.
