Monthly Dose of Germany: April 2026

Article by: Dr. Lars Hinrichs, Klaus Heeke, Elisa Ultsch, Leonie Scharwächter

Employment law implications of the EUPTD not being transposed into German law by 7 June 2026

The EU Pay Transparency Directive (Directive 2023/970/EU, EUPTD) must be transposed into German law by 7 June 2026 (Article 34 (1) EUPTD). To date, the German legislature has not presented a draft of the implementing legislation (which is expected to provide for the transposition of the key provisions of the EUPTD into the German Pay Transparency Act (Entgelttransparenzgesetz, EntgTranspG I) enacted in 2017). It is to be expected that the EUPTD will not be transposed into German law by the deadline. There is currently debate within the remuneration sector as to whether, in this scenario, the substantive provisions of the EUPTD are directly applicable in German law without restriction – and this view is indeed currently being advocated by certain stakeholders (primarily legal advisers). In this Client Alert, we discuss the direct application of the EUPTD (which must be ruled out, at least for employers with shareholders under private law) in the event of failure to transpose it on time – and the indirect consideration to be taken into account in remuneration practice within the framework of the (EUPTD-)directive-compliant interpretation of the relevant provisions of the EntgTranspG I and the resulting requirements for action.

Article by: Dr. Lars Hinrichs, Elisa Ultsch and Katja Sartori-Röthke

Our Spring 2026 Client Alert on current case law at company pensionschemes covers the judgments

(1)  by the Federal Labor Court (Bundesarbeitsgericht, BAG) on 21 October 2025 (9 AZR 66/25) regarding any special requirements for the quantitative assessment of the trust assets of a CTA for insolvency protection of part time retirement credits (§ 8a ATG).

(2) by the BAG on 26 August 2025 (3 AZR 283/24) regarding the inclusion of apprentices within the scope of a works agreement on company pensionschemes and the interpretation of the term “company employees.”

(3) by the BAG on 25 November 2025 (3 AZR 91/25) concerning the limits of the adjustment substitution rule in the new pension system.

(4) by the BAG on 28 October 2025 (3 AZR 35/25) regarding the requirement for a decision at reasonable discretion pursuant to Section 315 of the German Civil Code (BGB) in the case of a reservation of unilateral determination of benefits in a general commitment.

(5) by the Munich Regional Labor Court (LAG München) on 31 July 2025 (3 SLa 95/25) regarding the applicability of the civil service maximum limit regulation of Article 85(2) of the Bavarian Civil Servants’ Pensions Act (BayBeamtVG) to a civil servant-like pension commitment.

Article by: Dr. Till Contzen and Daniel Bader

Digital sovereignty is no longer an abstract guiding principle for enterprises. It has become a concrete response to the risks that arise when sourcing, operating, and switching digital solutions. It gains practical relevance wherever geopolitical tensions, regulatory requirements, and technological dependencies directly affect the reliability of digital infrastructures, data flows, and supply sources.

Article by: Maximilian Giepmann, Thilo Alexander Hoffmann

In its ruling of February 10, 2026 (II ZR 71/24), the Second Civil Senate of the Federal Court of Justice further developed and clarified its previous case law regarding the validity of so-called “free exclusion clauses” in the context of management equity programs. The Federal Court of Justice confirms that call options in articles of association that are linked to the termination of a management function are, in principle, void under Section 138 para. 1 German Civil Code (“BGB”) but may be objectively justified in individual cases due to special circumstances.

Article by: Dr. Lars Hinrichs, Elisa Ultsch and Katja Sartori-Röthke

Update 2026: Adjustment (check) of pension benefits according to Section 16 BetrAVG

The current economic framework conditions and above all the – even taking into account the recent weakening still – persistent inflation trend continue to have a material impact on the adjustment of pension benefits from company pension schemes commitments in accordance with Section 16 BetrAVG. Employers who – when the economic situation permitted – have in the past adjusted pensions in line with the development of the consumer price index (CPI, Section 16 (2) no. 1 BetrAVG) are still facing considerable additional expense in the current financial year in view of an inflation rate of up to 11% in the last 3 calendar years if the adjustment continues unchanged. This Client Alert provides an update on the specific structuring options and the employers' informatio

Article by: Dr. Till Contzen, Dr. Sarah J. Becker, Björn Bringmann and Prof. Dr. Arno Probst

Book Publication

Artificial intelligence has long been a reality and is profoundly changing business models, work environments and leadership principles. The key question is no longer whether AI is used, but how quickly, legally secure and consistently it can be integrated into one's own organization.