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On June 28, 2024, the German Bundestag passed the Second Act Amending the Works Constitution Act (BetrVG). This amendment is intended to increase legal certainty for employers with regard to the remuneration of released works council members. The legislator is thus reacting to the ruling of the Federal Court of Justice of 10.1.2023.1 This had once again made it clear that managers – in particular the management board – can be liable to prosecution for breach of trust if they set the remuneration too high due to errors in determining it. KPMG Law experts Martin Trayer and Julian Cahn explain the challenges that arise for employers and works councils.
“The so-called loss of earnings principle applies to the remuneration of released works council members. The remuneration may not be lower than that of comparable employees, taking into account the professional development customary in the company.”
You can find the full article here (page 98 ff.).
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THE SQUAIRE Am Flughafen
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THE SQUAIRE Am Flughafen
60549 Frankfurt am Main
Tel.: +49 69 951195015
jcahn@kpmg-law.com
KPMG Law
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