As part of its growth initiative, the German government is currently planning to make overtime pay tax-free. The aim of this measure is to ease the financial burden on employees and increase the attractiveness of overtime. But what is the current situation? Current regulations Overtime and its bonuses are currently subject to regular taxation and social security contributions. Exceptions exist for bonuses that
On January 28, 2025, the Federal Labour Court (BAG) ruled that employers may provide their employees with pay slips in electronic form. Pursuant to Section 108 (1) sentence 1 of the German Industrial Code (GewO), employers are obliged to provide a statement in text form when paying wages. This obligation can also be fulfilled by providing the payslip as a
In a McDonald's branch in Berlin, a conflict over the use of the women's changing room led to a court settlement. Trans woman Kylie D., who has worked at the branch since 2019, had sued her employer after experiencing discrimination and insults on several occasions. The case shows how sensitive dealing with gender identity in the workplace continues to be. Conflict
The turn of the year brought a number of changes to employment law that are relevant for employees and employers. In particular, the new Bureaucracy Relief Act is intended to reduce bureaucratic procedures and simplify prescribed processes through simplified formal requirements and digitalization options. Most of this has been in place since 01.01.2025. And there are also some changes in terms of the minimum wage. But let's take a look at the most important changes
Our client letter is sent out monthly via our newsletter and contains upcoming tax dates as well as all kinds of tax tips and news. For our interested readers, we offer this information here for free download. Topics in January 2025 include: For all taxpayers: Tax treatment of the reversal of a consumer loan agreement For all taxpayers: Automatic exchange of financial accounts is constitutional
New supreme court rulings in labor law strengthen the position of employees with part-time contracts. Accordingly, it is inadmissible discrimination if collective agreements stipulate that overtime bonuses are only to be paid if the working hours of a full-time position are exceeded. Even if the employee in question is only employed part-time. If there are no objective reasons for this, this constitutes a violation of
