GlobalAutoTV
Click to watch Dr. Juergen Weber -
Click to watch Dr. Juergen Weber -
euro resources


Need an office in Europe or Eastern Europe? Office suites, meeting rooms, virtual offices, network access




free downloads
EUROPE: "Playing a long game: A study of the foreign investment plans of Turkish businesses"

EUROPE: "Playing a long game: A study of the foreign investment plans of Turkish businesses between 2009 and 2014" report. 12-page report by KPMG Turkey.

proceed to download
eJournals





back to index backEUROtalk February,  2017


Europe: Employer’s subsidiary liability for occupational pension payments

By judgement of 20 September 2016 (BAG, docket number 3 AZR 302/15), the Federal Labour Court ruled that an employer is liable for occupational pension payments, where the pension payments have been granted on the basis of a collective agreement and the implementation via an external pension provider could not take place during the vesting period.

The employee had an employment relationship as of October 1988 and was granted a pension promise by the employer. On the basis of the employment contract and according to collective agreements, the employer was obliged to provide for a pension scheme in the shape of direct life insurance via a special external pension provider. As the employer had not been a member of this special external pension provider until March 1991, the employee only could build up a pension entitlement with effect from April 1991. The employee claimed for higher pension payments. The defendant employer argued that he did not want to grant a pension promise without reserve, but only where he became a member of the external pension provider.

The Federal Labour Court considered the claim to be founded. According to the German Occupational Pension Act(Betriebsrentengesetz), an employer is also liable for pension payments where the pension scheme has not been provided by the employer, but by an external pension provider. Under German law, there is a strict differentiation between the basic obligation under employment law and the form/implementation of a pension scheme. Where an employer makes use of an external pension provider, this external pension provider can only be considered as a supporting vehicle. If the pension payments cannot be made by the external pension provider, the employer is obliged to make the payments out of his assets.

The employer’s subsidiary liability for occupational pension payments is a significant principle of German occupational pension law. Currently, there is a draft of a new law aiming to strengthen the system of occupational pensions in Germany. This new law provides (inter alia) the option of a pure defined contribution promise without the employer’s subsidiary liability for the pension payments. This requires that the pure defined contribution promise is implemented on the basis of a collective agreement of the social partners according to German labour law.

Source: DLA Piper
- GAI






previous page

go top
search our site


Loading

EUROtalk

Other articles from the same issue (February,  2017).

Automotive Innovation Slovakia Survey 2016
play read on

Israel's automotive & smart mobility industry
play read on

This is how Brexit could impact the German car industry
play read on

Europe Top 20: motor vehicles produced per worker by country
play read on

WTO has ordered Russia to change duties on LCVs
play read on

Automotive Industry in Romania: A Path to Success
play read on

UK car output reaches 17-year high on export growth
play read on

European Carmakers Weigh Options Amid Mexico Tax Threats
play read on

Europe: an attractive market with complex supply chains
play read on

Eurozone growth and inflation confirm economic recovery
play read on

Will EU nationals be allowed to stay in UK after Brexit?
play read on

Eastern Europe’s workers are emigrating, but its pensioners are staying
play read on

Top priorities for European boards in 2017
play read on

EU inks deal to end roaming charges in June
play read on

EU Antitrust Continuity Potentially Threatened by Brexit
play read on

Choo-Choo! New China-Europe Rail Link Set to Steal Air and Sea Freight Volumes
play read on

We are hiring! The European manufacturing industry looks for STEM graduates
play read on

EU Agrees on Final Version of Prospectus Regulation; All EU Issuers can Expect to Benefit from the Employee Share Plan Exemption Starting in 2019
play read on

Russia Files WTO Suit to Protect Metallurgists
play read on

EU commission drops anti-corruption report
play read on

Germany: The Works Council’s right of co-determination regarding the Employer’s Facebook presence
play read on

Brexit White Paper: implications for employers
play read on

Poland: New tax super deduction for R&D in annual corporate tax returns for 2016
play read on

German Tax Monthly January/February 2017
play read on

EU labour cost index - recent trends (Dec. 16)
play read on

Survey shows Hungary’s healthcare near bottom in Europe
play read on

UK manufacturing kicks off 2017 on the right foot
play read on

How privacy consent might change with new European ePrivacy rules
play read on

Europe: Employer’s subsidiary liability for occupational pension payments
play read on

CEE outperforms rest of Europe (real estate)
play read on

Major European Manufacturing PMI data remains firmly in expansion territory
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120