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Federal Labor Court strengthens part-time workers: Overtime bonuses must not discriminate.

Expert article in labor law

BAG supports part-time workers: Overtime pay must not be unfavorable

On December 5, 2024, the Federal Labour Court (BAG) issued two significant rulings affecting numerous part-time employees.

The focus was on the question of whether collectively agreed overtime bonuses may only be granted if the working hours of a full-time position are exceeded – even if the actual overtime is below the full-time limit.

These rulings have significant implications for labor law, equal treatment, and remuneration practices. In particular, industries with a high proportion of female part-time workers are facing an increased need for action.

Why part-time workers enjoy special protection

Employment law contains clear provisions to ensure that part-time employees are not paid or treated less than full-time employees. The principle of equal treatment and the principle of pro-rata pay require that benefits and bonuses be granted in proportion to the agreed working hours.

European law also supports these requirements: The European Framework Agreement on Part-Time Work makes it clear that structural disadvantages are inadmissible. Therefore, any regulation that actually disadvantages part-time workers must be examined particularly critically.

Preliminary ruling from Luxembourg: The ECJ sets limits

Before the Federal Labour Court (BAG) could reach a decision, the European Court of Justice (ECJ) established fundamental guidelines in the summer of 2024. It ruled that collective bargaining agreements that provide for overtime pay exclusively for working hours exceeding those of a full-time position may violate EU law's prohibition of discrimination.

The reason for this is that part-time employees often demonstrate additional effort but do not receive the same financial compensation as full-time employees. If employers can order overtime from part-time employees more cost-effectively, this leads to systematic inequality.

Thus, it was clear: collective agreements must take into account the actual working hours of part-time workers – not just abstract requirements for full-time workers.

Two nurses are protesting against the remuneration model.

The two cases pending before the Federal Labour Court (BAG) involved nursing staff who were employed part-time to varying degrees. Both were regularly required to work more hours than stipulated in their part-time contracts.
However, the relevant collective agreement only recognized these hours as overtime subject to surcharges if the workload of a full-time position was exceeded.

The women demanded recognition of their overtime work and compensation for unequal treatment. While the court of first instance dismissed their claims, the regional labor court ruled that at least the working time accounts had to be corrected – but rejected their claim for compensation.

Due to the fundamental importance of the case, the Federal Labour Court (BAG) subsequently referred it to the European Court of Justice (ECJ).

The Federal Office of Public Health (BAG) clarifies: regulations must be applied proportionally.

In its recently published rulings, the Federal Labour Court (BAG) decided that collective bargaining agreements that only grant overtime bonuses above a full-time position are invalid unless they are applied proportionally to part-time employees.

Here's a summary of the most important points for you:

  • Part-time workers must receive supplements in proportion to their individual working hours.
  • There is no objective reason to grant them overtime pay only when they exceed the full-time equivalent.
  • Collective agreements must be interpreted or adapted so that the threshold for bonuses corresponds to the part-time quota.

With this decision, the Federal Labour Court (BAG) is sustainably strengthening the remuneration rights of part-time employees.

Recognition of indirect gender-based discrimination

Another key aspect of the decision concerns equal treatment under the General Equal Treatment Act (AGG). Since over 90% of the part-time employees in the affected institutions were women, the Federal Labour Court (BAG) found indirect discrimination based on gender.

The affected female employees therefore received additional compensation. Even though the amount, at 250 euros, was rather small, the ruling makes it clear that if a group consisting predominantly of women is disadvantaged, this can give rise to a claim for compensation.

What employers and employees should consider now

For employers, the ruling means that existing collective bargaining agreements and company agreements must be reviewed. Compensation models that define overtime solely based on full-time equivalent thresholds are particularly risky.

I recommend that employees have the following checked:

  • whether overtime was properly compensated or credited,
  • whether collective bargaining agreements violate the principle of equal treatment,
  • whether there is an entitlement to differential payment or compensation.

Part-time workers – especially in female-dominated industries – should not leave their rights unused.

Conclusion: A significant sign of increased justice

In its rulings of December 5, 2024, the Federal Labor Court (BAG) made it clear: Part-time work must not lead to structural disadvantages. Remuneration systems must be proportional, and discrimination – even in indirect forms – will be punished under labor law.

This presents many employees with new opportunities to have their remuneration and treatment reviewed.

Do you want to have your employment law situation reviewed or need a legally sound assessment? As a lawyer specializing in employment law, I am here to provide you with reliable support. Contact me – I would be happy to advise you personally.

Make an inquiry now
We will be happy to provide you with comprehensive, personal advice on your concerns.

Frequently Asked Questions (FAQs)

The Federal Labour Court had to clarify whether part-time workers are entitled to overtime pay if they exceed the working hours of a full-time position, or whether these pay must be granted as soon as the individual part-time quota is exceeded.

The Federal Labor Court (BAG) has clarified that overtime pay also applies proportionally to part-time employees. Exclusively referring to full-time working hours unfairly disadvantages part-time workers.

Lawyers are protected by the principle of equal treatment and the principle of pro rata remuneration. They may not be treated less favorably than full-time employees.

Union law, in particular the European Framework Agreement on Part-Time Work, prohibits structural disadvantages for part-time workers and has had a significant influence on my interpretation by the Federal Labour Court.

The European Court of Justice has made it clear that collective bargaining agreements may violate Union law if they allow part-time workers to work overtime without adequate compensation.

The subject of the proceedings was lawsuits by part-time care workers whose additional working hours were only considered subject to a surcharge if the full-time limit was exceeded.

Yes. The Federal Labour Court (BAG) found that there was indirect gender discrimination, as predominantly women worked part-time and were disadvantaged by the regulations.

Yes. If indirect discrimination is established, there may be a claim for compensation under the General Equal Treatment Act.

As an employer, I am obliged to review collective agreements, company agreements and remuneration systems and to ensure that overtime bonuses are granted appropriately to individual working hours.

Part-time employees will in future be able to more easily check whether they are entitled to bonuses or compensation claims, and they can rely on an improved labor law position.

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