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Monthly Dose of Germany
May 2023
We would like to share some interesting insights into the German Legal market and recent developments as well as interesting events and publications with you. This edition of our "Monthly Dose of Germany" is presented by our Italian Desk, headed by Nikolaus Malottke.
International Employment Law Guide
Overview of employment law regulation covering the full employment life cycle
The regulatory employment law landscape is rapidly changing and comes with an ever-increasing complexity, which makes it challenging for multinationals to manage compliance with the applicable rules. This guide contains summaries of the employment law rules regarding he full employment life cycle in 60+ countries, and analyzes them to discover the similarities and differences.
It contains a summary overview of domestic employment laws without specific industry focus. The guide also does not include regional, state or province legislation (except for Canada, where the analysis only covers Ontario).
Each of the 64 countries in scope has its own country page, summarizing the onboarding specifics when hiring employees (e.g., types of employment contracts, whether there is a need to establish a legal entity when hiring someone, etc.) as well as the rules for offboarding.
As of 2023, two new chapters were introduced related to remote work and equal pay.
The country-specific regulations in Germany are outlined here: Germany
German Act on Corporate Due Diligence Obligations in Supply Chains
Implications for sanctions and civil lawsuits
Based on first press reports of complaints by human rights organisations against two companies on the basis of the German Act on Corporate Due Diligence Obligations in Supply Chains, we briefly outline the main aspects of the risk of sanctions and civil lawsuits.
The risk to become the focus of investigations by the competent German Federal Office of Economics and Export Control (BAFA) into possible violations of due diligence obligations under the German Act on Corporate Due Diligence Obligations in Supply Chains Germany (LkSG) by complaints from third parties, in particular from foreign as well as international non-governmental organisations and trade unions, is – taking into account first press reports – becoming an increasingly realistic scenario for companies that fall within the scope of the LkSG.
Furthermore, the potential risk of a claim for damages, for example, by persons who argue that their protected legal position under section 2(1) of the LkSG has been violated, should not be underestimated. Especially such a lawsuit is privileged by the special capacity to sue (besondere Prozessstandschaft) under section 11 of the LkSG. According to this provision, a person alleging a violation of such legal positions may authorise a domestic trade union or non-governmental organisation to bring proceedings to enforce his rights in its own capacity.
It is important to consider that a complaint or civil lawsuit can also lead to damage to the image and reputation of a company. In the following, we give you a brief overview of sanctions under the LkSG as well as the implications of possible civil lawsuits.
Update: New Regulation on Deforestation-free Products
Following the EU Parliament, the Council has also adopted the new Regulation on Deforestation-Free Products. According to this EU-Regulation, affected companies have to fulfil due diligence obligations when they place, make available or export certain agricultural commodities, such as cattle, cocoa, coffee, oil palm, rubber, soya and wood, as well as derived products, on or from the Union market. This could relate to numerous product categories, from chocolate to furniture. The Regulation now has to be published in the Official Journal of the European Union and will then enter into force 20 days later. We have outlined the most important aspects of the new Regulation on Deforestation-Free Products.
Update: Adoption of the new EU regulatory framework
The new Regulation for Deforestation-Free Products (hereinafter: “Regulation”) has the aim of repealing and replacing the previous EU Timber Regulation (Regulation (EU) No 995/2010) and and the related Commission Implementing Regulation (EU) No 607/2012. The existing EU legal framework so far focused on tackling illegal logging and associated trade and did not address deforestation. The main objective of the Regulation is to reduce deforestation and forest degradation caused by EU consumption and production, which is expected to reduce EU greenhouse gas emissions and global biodiversity loss.
Transaction News
We at Deloitte Legal Germany are constantly advising on numerous complex transactions and challenging projects.
We would be delighted to explain our services portfolio to you and discuss with you how we at Deloitte Legal Germany can assist you with your projects, whether in the field of Corporate Reorganizations, M&A transactions, including carve-outs, general commercial, employment law, IT/IP or LMC/LMS. Just reach out to us!
In order for you to better understand how we have helped other clients, we would like to hereinafter showcase information on two projects that our teams have recently advised on.
Deloitte advises on the spin-off of Investitionsbank Sachsen-Anhalt
After intensive preparations, Investitionsbank Sachsen-Anhalt was founded in Magdeburg on 1 March 2023 as a public law institution with legal capacity. Deloitte has been advising and supporting Investitionsbank and the Federal State of Saxony-Anhalt in this independence process since 2019.
Deloitte Legal advises Group DC on integration of HAWITA Group
A Deloitte Legal team around Felix Felleisen and Max Lüerßen has advised Group DC, a family-owned company from the Antwerp (Belgium) region, on its acquisition of HAWITA Group from Vechta, Germany.
Deloitte Legal Webcast Series
In our German language Deloitte Legal Update webcast series, we address current legal issues and developments that are important for corporate practice.
In our upcoming "Legal Update" webcast we will discuss:
Implementation and use of IT systems from employment and data protection law perspective – practical implementation and best practice
Wednesday, 07 Jube 2023 | 11:00 - 11:45 a.m.
Register here (Webcast in German language)
You can download the presentations of our recent webcasts here:
- News from the real estate industry: ESG in consulting and corporate practice, and the trend toward proprietary trades - reasons and consequences here (in German language)
- Whistleblowing 2.0: Requirements of the Supply Chain Due Diligence Act (LkSG) and the Whistleblower Protection Act (HinSchG) - What companies need to consider in this regard here (in German language)
In our Webcast Archive, you can find a list of previous webcasts and also download the corresponding presentations.
Should you be interested in topics discussed during one of our German language webcasts, do not hesitate to contact the respective presenters – they will be delighted to provide you with additional information in the English language.
EMEA Dbriefs Legal Webcast Series
The Dbriefs Legal webcast programme for Europe, the Middle East and Africa help you gain insights on key legal trends and critical issues affecting your global business operations.
The upcoming "Dbriefs Legal" webcasts will discuss:
Diversity, Equity And Inclusion - The HR Perspective
Wednesday, 31 May 2023 | 15.00 CEST
Register here (Webcast in English language)
An Introduction To The EU Pay Transparency Directive – Lessons Learned From The US And The UK
Wednesday, 7 June 2023 | 15.00 CEST
Register here (Webcast in English language)
