Collective bargaining autonomy strengthened: night work surcharges uniformly increased!

Collective bargaining autonomy strengthened: night work surcharges uniformly increased!

On April 10, 2025, the Federal Constitutional Court made it clear in a groundbreaking ruling that the collective bargaining parties are bound by the general principle of equality of the Basic Law. This decision particularly affects the regulations on night work surcharges and could have far-reaching consequences for collective bargaining autonomy. The court found that all employees must be treated equally unless there are objective reasons for unequal treatment. The distinction between different surcharges of 25% for regularly working night shift employees and 50% for irregular employees was considered inadmissible because there was no objective reason for this differentiation.

In the proceedings, the employers took action against a ruling by the Federal Labor Court, which had ordered the adjustment of the surcharges. This provided for a 50% surcharge for all night workers and invoked Article 3 Paragraph 1 of the Basic Law, which not only refers to the rights of employees, but also more clearly defines the surcharges to be granted. The employers filed constitutional complaints citing Article 9 Paragraph 3 of the Basic Law, which protects freedom of association. Nevertheless, the Federal Constitutional Court found that the collective bargaining parties' commitment to the principle of equality was inviolable.

Collective bargaining autonomy and the principle of equality

The judgment has a clear and direct connection to collective bargaining autonomy. The judges ruled that the collective bargaining parties have “primary corrective authority” to correct unjustified unequal treatment. This means that courts are allowed to intervene, but only if the collective bargaining parties do not fulfill their responsibilities. When reviewing the regulations, it remains unclear how the labor courts will react if the collective bargaining parties fail to make a correction. The relevance of this judgment extends far beyond the proceedings discussed here and could also have an impact on a large number of other collective agreements and their bonus regulations.

The constitutional complaints filed by professors and lawyers like Prof. Dr. Jacobs and Prof. Dr. Malorny, comprised over 35,000 pages and set out the weight of this issue. The exact impact of the decision on existing collective agreements and future case law remains to be seen, particularly with regard to the European Court of Justice's requirements on anti-discrimination law.

Case law and collective agreement

The Federal Constitutional Court's decision is based on the previous legal framework, which views collective agreements as central sources of law in labor law. These contracts regulate the rights and obligations of the collective bargaining parties and third parties and have both a contract law and a normative orientation. The standardization by the collective bargaining parties takes place in compliance with the principle of equality, which requires further clarification in current case law. The Federal Labor Court had differentiated bonus regulations in the past, but this practice has now been questioned by the constitutional judges.

This fundamental decision could not only shape the future practice of night work bonuses, but also shed light on the general principles of collective bargaining autonomy and equal treatment in a broader context. In the future, the collective bargaining parties could face new challenges as they are confronted with the requirements of the principle of equality and ensuring fair working conditions.

For the future, the legislative and legal acceptance of the decision remains crucial in order to meet the requirements for equal treatment in the employment relationship and at the same time preserve collective bargaining autonomy. The impact on anti-discrimination law and possible reactions from the European Court of Justice are still pending. The discussion about the reform and adjustment of collective agreements will certainly be stimulated by this ruling.

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