Germany: court ruling will make it easier to terminate older workers employment contracts

In early December 2022, Germany’s Federal Labour Court ruled that when assessing the social criteria for determining the order in which employment contract terminations are made, how close an employee is to their retirement age could be accepted as a valid determinant. This factor could thus conceivably count against an employee. The court’s ruling may also run counter to the government's policy of maintaining older workers in employment for as long as possible.
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On 08 December 2022 Germany’s Federal labour Court (BAG) handed down a ruling that addressed the ‘social selection’ (a ranking list based on social criteria) companies have to draw up when choosing between several employees as part of a multiple employment contract termination programme. The BAG ruled that when weighting the ‘age’ criterion, account may be taken, potentially to the detriment of the employee, of the fact that s/he will reach the legal retirement age within two years following the proposed employment termination date and is also be eligible for full retirement pension benefits.

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