Germany: Cabinet Implements EU Mobility Directive, Labor Ministry Says

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By Andrea Barbara Schuessler

July 13—European governments are in the process of approving legislation to implement the European Union mobility directive effective Jan. 1, 2018, Claudia Guske, press officer with the representative office of the European Commission in Berlin, e-mailed Bloomberg BNA July 7, and the German Cabinet approved the legislation July 1, according to the Labor Ministry.

The EU Directive aims to protect the pension rights of employees who move between member states. The directive now requires that an employee be involved for at least three years in an employer-financed pension plan to secure his or her entitlement. The requirement had previously been five years. In addition, the age at which an employee can leave an employer without losing pension entitlements will be lowered from 25 to 21 years, the Labor Ministry said, allowing young mobile employees to vest in their plans earlier and more quickly. Employees no longer need to fear that a change of employer may affect their pension rights.

The legislation must now be approved by the German parliament.

To contact the reporter on this story: Andrea Barbara Schuessler in Berlin at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

Legislation to implement EU Directive 2014/50/EU is available in German at http://www.bmas.de/SharedDocs/Downloads/DE/umsetzung-mobilitaetsrente.pdf?__blob=publicationFile, the directive itself in English at http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0050&from=DE.

For more information on German HR law and regulation, see the Germany primer.