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ARTICLE · 02 MARCH 2020

What Costs Must The Employer Bear When An Employee Relocation Is Declared Invalid?

The German Federal Labour Court has ruled an employee was entitled to mileage reimbursement for driving to his new place of work when his relocation to another branch was declared invalid.

GermanyEmployment and HR

The German Federal Labour Court has ruled an employee was entitled to mileage reimbursement for driving to his new place of work when his relocation to another branch was declared invalid.

The relocation of employees is a perennial issue. Even though much has been written in case law and literature about the requirements for a legally effective relocation, the question often arises as to what risks an employer bears if it relocates an employee to another position ineffectively. The Federal Labour Court recently had to decide a case in which an employee asserted claims for damages against his employer due to an invalid geographic relocation (BAG, ruling dated November 28, 2019 - 8 AZR 125/18, press release no. 42/19).

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