Europe's Top Court Rules Travel Time Counts as Work for Millions of Mobile Employees
Published on 07/25/2026 at 02:45 | Redaktion boerse-global.de
A landmark decision from the European Court of Justice is set to reshape how German companies account for employee travel time, potentially triggering significant back-pay claims across multiple industries. The ruling applies when employers specify the meeting point, vehicle, and departure time for workers who travel between a company depot and changing job sites.
An estimated two million employees in construction, commercial cleaning, and nursing care stand to benefit. For a worker earning Germany's minimum wage of €13.90 per hour and commuting 80 minutes daily, the change could mean up to €400 in additional monthly compensation. The ruling does not affect regular commutes from home to a fixed workplace.
The decision arrives as the German cabinet, under Chancellor Friedrich Merz, approved a National Action Plan on Wednesday to strengthen collective bargaining coverage. The plan transposes the EU Minimum Wage Directive into national policy, bundling existing measures such as the Federal Procurement Wage Act—which took effect on May 1—alongside tax incentives for union members.
Future legislative changes include a digital access right for unions to enter company premises and amendments to the Working Hours Act. Existing tools like qualification pay and short-term employment rules are folded into the broader framework.
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Cabinet Reshuffle Targets Economic Focus
Merz initiated a government shakeup on Friday following the resignation of Jens Spahn. Health Minister Nina Warken is slated to become the first woman to lead the Chancellery, while former CDU General Secretary Carsten Linnemann takes over the health portfolio. Philipp Amthor is tipped as state minister for federal-state relations, and Thorsten Frei moves to lead the Union parliamentary group. Franziska Hoppermann is under consideration as the new general secretary. Formal appointments are scheduled for Wednesday, with swearing-in in September. Political observers view the restructuring as an attempt to sharpen the government's focus on economic and health policy.
Bakers Push for Sunday Work Reform
Germany's skilled trades sector is demanding faster relief. Jörg Dittrich, president of the German Confederation of Skilled Crafts, criticized delays in scrapping the Sunday baking ban. Despite coalition promises, no draft law has emerged.
Current rules limit Sunday and public holiday baking to three hours. An unofficial draft proposes extending that to five hours, with delivery taking three hours. The original target date for implementation was January 1, 2027. While the crafts association argues for competitive parity with petrol stations, unions oppose further relaxation of Sunday rest protections.
Steel Sector Agrees Social Plan
In the steel industry, a collective social agreement has been reached for HKM. Job cuts are capped at 1,700 positions, down from an originally planned 2,000. Five hundred workers will leave the company by October 1 through voluntary programs, with the remaining 1,200 positions phased out by mid-2029.
The restructuring stems from plans to shut a blast furnace and transition to electric arc furnace production. The government is supporting the transformation with €200 million.
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Actress Wins Pregnancy Discrimination Settlement
A media and employment law case between actress Caro Cult and production company Dreamtool Entertainment ended with a settlement. A role in a public-broadcaster series was rescinded due to pregnancy. Cult will receive half the agreed fee as compensation. The court did not issue a formal finding of discrimination.
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