Decision of the century! Federal Constitutional Court strengthens collective bargaining autonomy

Decision of the century! Federal Constitutional Court strengthens collective bargaining autonomy

On June 25, 2025, a notable decision by the Federal Constitutional Court will be reported that could influence the German labor law landscape. In a current video from Bucerius Law School, which is part of the “Research in Focus” series, Professor Dr. Matthias Jacobs on the decision made on December 11, 2024. This decision, which is seen as a “decision of the century”, deals with the collective bargaining agreement night work surcharges and the tension between collective bargaining autonomy and the general principle of equality, i.e. Article 3 paragraph 1 of the Basic Law (GG) [law-school.de reports that ...].

The background to the decision is a constitutional complaint that was initiated by Jacobs and which clarified the bindingness of the collective bargaining parties to the Basic Law. This decision strengthens the partners' collective bargaining autonomy and redefines judicial control with regard to collective bargaining standards. New questions are also being raised about the practical design of the “primary corrective authority” of the labor courts, which is likely to stimulate the discussion about the role of the courts in collective bargaining matters.

Constitutional complaints and judgments

The decision of the First Senate of the Federal Constitutional Court, published on February 19, 2025, deals with two constitutional complaints from employers. They had sued against rulings by the Federal Labor Court that had required them to pay higher night surcharges. The Federal Labor Court found that the collective bargaining regulations for night shift work were not compatible with the general principle of equality in the Basic Law and that an “upward adjustment” was necessary [bundesverfassungsgericht.de informs that…].

The constitutional complaints were recognized as admissible and well-founded, while the complaints from associations were rejected as inadmissible. The Federal Constitutional Court confirmed that the decisions of the Federal Labor Court violated employers' right to freedom of association in accordance with Article 9 Paragraph 3 of the Basic Law. These judgments were therefore overturned and the cases were referred back to the Federal Labor Court.

Collective bargaining autonomy and equal treatment

The central points in this context are the supplementary regulations for night shift work. Late workers received a surcharge of 50 percent, while night shift workers only received 25 percent. The Federal Labor Court thus found unequal treatment, which was considered inadmissible. The constitutional complaints show how important it is for employers to maintain collective bargaining autonomy and criticize the Federal Labor Court's insufficient consideration of freedom of association [bundesverfassungsgericht.de states that...].

The judges also discussed the fundamental binding nature of the collective bargaining parties and the limits of judicial review. The Federal Constitutional Court's decision-making underlines the necessary balance between the collective bargaining autonomy of companies on the one hand and the requirements of the equal treatment law on the other. This area of ​​tension continues to be critically observed both in science and in practice.