German High Court Strengthens Employer Information Rights as Labour Market Shifts on Multiple Fronts
14.06.2026 - 01:52:44 | boerse-global.de
A new ruling from Germany’s Federal Labour Court (BAG) gives employers a sharper tool in wage-dispute cases, marking a subtle but significant change in the balance between worker and company interests. The decision allows companies to demand details about job referrals made by the Federal Employment Agency when a former employee claims pay for idle time after a dismissal. If the worker turned down reasonable offers without a valid reason, the employer can limit the back-pay obligation — a critical lever in drawn-out unfair dismissal lawsuits where large sums of money often hang in the balance.
The court’s move comes amid a broader series of workplace developments across Germany, Austria and Switzerland, where businesses, unions and policymakers are grappling with cost pressures, restructuring and regulatory change.
Alstom’s Kassel plant remains in limbo. Nearly 1,000 employees attended a works meeting on 13 June 2026 but received no decision on the site’s future. A possible sale to an arms manufacturer is under consideration. Though the order books are full for 2026 and 2027, the plant itself is operating in the red.
When disputes arise, thorough documentation can make or break a case. The same principle applies to workplace safety — many UK employers lack proper risk assessments and records that could leave them exposed to fines. A free Health & Safety Toolkit provides ready-to-use templates for risk assessments, COSHH compliance, and more, so you have the paperwork you need from day one. Download the free Health & Safety Toolkit
At TeleBielingue, the picture is far starker. The Swiss broadcaster, which lost its concession, has agreed a social plan with the Syndicom union, effective end of June 2026. Of more than 50 original positions, only 17 will remain. A transitional programme begins in July, followed by the “TeleBielingue 2.0” concept in autumn.
The perfume chain Pieper has been rescued. The insolvent company, in self-administration since November 2025 and tracing its roots back to 1931, is being taken over by AIH Holding (part of Groupe Bogart). Of 122 stores, 115 will stay open, and roughly 30 of around 770 jobs will disappear. The Pieper brand continues to operate.
In Austria, the chemical industry’s new collective agreement took eight rounds of talks and accompanying strikes to finalise. Around 50,000 workers will see actual wages and salaries rise by 1.8 percent retroactive to 1 May 2026, capped at €100 per month. A one-off payment of €300 or an optional extra day off is also included. Minimum wages and apprentice pay go up by 2 percent.
A reform summit at the chancellery on 10 June 2026 produced no breakthrough. Unions blamed high energy and raw-material costs plus competitive pressure from China for the economic weakness. Employers pointed to high labour costs, bureaucracy and skills shortages. On core issues like pensions, taxes and labour law, no consensus emerged.
Internationally, the International Labour Organization has set binding standards for gig workers. Platform operators such as delivery services can no longer routinely classify employees as self-employed. Implementation requires ratification by national governments, with long-term implications for social protection in the platform economy.
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On the tax-and-benefits front, Germany’s average tax refund in 2025 stood at €1,172, according to the Federal Statistical Office. The standard allowance for work-related expenses is €1,230, and the home-office allowance tops out at €1,260.
Meanwhile, a new Austrian government bill published on 10 June 2026 as part of the budget accompanying law proposes changes to part-time retirement schemes. From 2027, the telework and workplace flat-rate allowances will be scrapped. The contribution-assessment ceiling for social insurance will rise stepwise to €7,080 in 2027 and €7,130 in 2028.
