Berlin—Today, global law firm Dentons achieved a landmark decision for its client – a diaconal institution in Berlin with more than 1000 employees – in an employment law case before Germany’s Federal Employment Court (file no. 6 ZR 835/16).

The Federal Employment Court had to decide on whether a diaconal institution and its staff representation are entitled to conclude a work agreement that stipulates the cut of annual bonus payments in case of economic difficulties. The Federal Employment Court affirmed such an entitlement.

In its oral statement on the decision, Dr. Fischermeier, the presiding judge at the Federal Employment Court, declared that the parties did refer to the ecclesiastical constitution law by their employment contract. Therefore the parties also referred to the ecclesiastical constitution law which provides the possibility to modify work conditions in case of economic difficulties under § 8 MVG.AnwG EKBO, the Employee Representation Act of the Evangelical Church Berlin-/Brandenburg. The court left it open as to whether work agreements concluded on the basis of ecclesiastical law have a normative character.

Dr. Utz Andelewski, Head of Dentons’ Employment and Labor group in Germany, who represented the diaconal institution in this matter, commented on the decision: “The regulatory competence of religious communities is one of the most discussed issues in ecclesiastical employment law these days. I am happy that today's decision of the Federal Employment Court takes into consideration the special status of religious communities and their institutions under our labor law.”

Advisors of the defendant:

Dentons (Berlin): Dr. Utz Andelewski (Partner, Head of the German Employment Law practice), Dr. Christopher Wiencke (Associate, Employment Law)

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