Employment Litigation on the Rise? Comparing British Employment Tribunals and German Labor Courts

Posted: 15 Jan 2003

See all articles by Martin R. Schneider

Martin R. Schneider

University of Trier - Institute of Labour Law and Industrial Relations in the European Union; University of Paderborn

Abstract

Over the past years, individual worker voice via labor court or employment tribunal action has been gaining in importance in both Germany and Britain. Borrowing from the economic analysis of the legal process, this paper discusses the import of various factors to explain the increased demand for individual employment litigation. Overall, less stable, more flexible employment, in conjunction with weaker trade unions, appear to account for the recent rise in litigation in Britain and Germany. A second part of the paper considers outcomes of the legal process from an institutional economics perspective. In both jurisdictions, a substantial body of case law has accumulated. This is much criticized for leading to a formal and legalistic approach to resolve employment cases. It can be explained, however, by the incomplete and complex nature of the employment contract. Moreover, low reemployment rates in unfair dismissal cases in both Britain and Germany reflect the relational nature of the employment contract.

Suggested Citation

Schneider, Martin R., Employment Litigation on the Rise? Comparing British Employment Tribunals and German Labor Courts. Available at SSRN: https://ssrn.com/abstract=365280

Martin R. Schneider (Contact Author)

University of Trier - Institute of Labour Law and Industrial Relations in the European Union ( email )

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54286 Trier, 54296
Germany
+49 651 9666-131 (Phone)

University of Paderborn ( email )

Warburger Str. 100
Paderborn, D-33098
Germany

HOME PAGE: http://https://wiwi.uni-paderborn.de/dep1/personalwirtschaft-prof-dr-schneider/

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