German labour court rules employers can dock Weihnachtsgeld if workers strike

A labour court in Offenbach has ruled that employers in Germany can dock workers’ Christmas bonus money (Weihnachtsgeld) if they take part in industrial action.

German labour court rules on Weihnachtsgeld and striking

A German labour court in Offenbach, Hesse, has ruled that employers can dock employees' Christmas bonuses if they go on strike.

In the case in question, employees at a company had participated in a strike. In response, bosses at the company decided to reduce employees' Weihnachtsgeld by 1,6 percent for every day they were on strike.

Employees in Germany are not entitled to Weihnachtsgeld, but 52 percent of workers receive the bonus as part of their income in November. Weihnachtsgeld is traditionally a percentage of an employee’s monthly income, but this percentage can vary widely.

Neutral rules meant the pay docking was legal

In the Offenbach case, employees launched a complaint, arguing that, under German law, employees cannot be sanctioned for engaging in industrial action.

However, an earlier company agreement had outlined that Weihnachtsgeld would be proportionately reduced in the event of employee absence, regardless of the reason for the absence.

According to the labour court, employers were entitled to dock Weihnachtsgeld in this case because the withholding was based on “neutral rules” stipulated in the work contract.

The Verband deutscher ArbeitsrechtsAnwälte (Association of German Employment Lawyers or VDAA) pointed out that when employers dock bonus payments based on absence, the reasons for the absence are to be treated equally, whether it be due to sick leave, unpaid holiday days or industrial action.