Employers Face €25,000 Fine for Ignoring Employee Drafts on Work References, Court Rules

A May 2026 ruling by Germany’s Federal Labor Court (BAG) forces employers to issue job references exactly as drafted by the worker, unless they have compelling grounds to deviate – such as a risk of violating the principle of truthful reporting. Violations can be punished with coercive fines of up to €25,000.

The decision is the latest in a series of labor-law clarifications that also touch on co-determination rights in international firms, home-office rules, degradation procedures, and rising workforce mobility.

Volkswagen Rules Out Plant Closures in Salzgitter

At Volkswagen’s Salzgitter site, the works council chairman told a June 3 employee assembly that plant closures are off the table. The company is betting heavily on battery-cell production instead.

That contrasts with the situation at automotive supplier Mahle in Neustadt an der Donau, where a social-plan agreement has sealed a shutdown for the first quarter of 2027.

Labor unrest is simmering elsewhere. On June 4, around 100 workers in Saxony’s commercial distribution centers walked off the job, demanding substantial wage increases. In Saarland, works councils from the steel industry are planning a large-scale demonstration for June 12, citing changes in EU framework conditions for green steel that threaten the region’s plants.

When Home Office Becomes a Question of “If,” Not “How”

Despite the pandemic-driven shift to remote work, legal experts stress that Germany still offers no statutory entitlement to home office. Works councils have a say in the how of mobile-work arrangements, but not in the whether of their introduction.

A case involving the Federal Maritime and Hydrographic Agency illustrates the limits. Cutting approved telework from 60 percent to 20 percent does not automatically trigger co-determination – unless the employer has established a general company rule rather than making an individual adjustment.

Degrading a Worker Requires a Change Notice

Employers cannot unilaterally demote an employee to a lower position. To do so against the worker’s will, they must issue a formal change notice (Änderungskündigung) backed by a compelling operational reason and a concrete offer to continue the employment relationship. After receiving such a notice, affected employees have three weeks to file a lawsuit. They can accept the new terms under protest while the court examines the social justification.

Co-Determination for International Assignments

A separate BAG ruling tightens the conditions under which works councils can co-determine hires in multinational groups. The case involved a manager employed by an Austrian group company who supervised German field staff via video conference. The court held that for a co-determination right under Section 99 of the Works Constitution Act (BetrVG), the plant owner must have at least partial authority over the content, location, and timing of the work. Purely technical supervision does not suffice. The BAG overturned a decision by the Berlin-Brandenburg State Labor Court and sent the case back for rehearing.

High Turnover: 30% of Workers Leave Within Five Years

The latest Kündigungsreport (June data) shows that the separation rate in German workplaces stands at 30 percent over a five-year period. The retail sector is especially volatile, with 18 percent of staff quitting voluntarily.

en | boerse | 69485066 |