The Federal Labour Court (BAG) will hear the case on 18 November 2026 address a fundamental question regarding part-time employment law: Are employers permitted to pay part-time employees differently from full-time staff for so-called ‘overtime’ – that is, hours worked in excess of the contractually agreed part-time working hours, but still below the standard full-time hours? The case reference number is 5 AZR 142/25, the lower court was the Düsseldorf Regional Labour Court (9 SLa 431/24).
What exactly is this about?
Many employment contracts and collective agreements stipulate that overtime pay is only payable once a full-time employee’s full standard working hours, as set out in the collective agreement or by the employer, have been exceeded. For a part-time employee who works, say, 20 hours a week, this means: If they work additional hours, they will receive their normal hourly wage for these hours, but no overtime allowance, even if they are already working beyond their own contractual working hours. Full-time employees, on the other hand, receive overtime allowances as soon as they exceed their individual contractual working hours.
Whether this practice contravenes the prohibition on unequal treatment of part-time workers has been a matter of debate for years. Section 4 of the Part-Time and Fixed-Term Employment Act (TzBfG) expressly stipulates that part-time employees must not be treated less favourably than comparable full-time employees, unless there are objective reasons for the difference in treatment.
What was the ruling of the Düsseldorf Regional Labour Court?
The Düsseldorf Regional Labour Court handed down a ruling at first instance, which is now being reviewed by the Federal Labour Court. No details of the first-instance judgement are available from the notice of the hearing. The Federal Labour Court will now rule on the matter in principle.
What does this mean for employees and employers?
The decision could have significant practical implications, both for part-time workers and for companies that employ part-time staff:
- Part-time employees They may be able to claim back pay for overtime allowances if the Federal Labour Court (BAG) finds that there has been unequal treatment. However, any limitation periods set out in employment contracts and collective agreements must be taken into account.
- Employer should review their existing remuneration arrangements for overtime worked by part-time staff. Companies bound by collective agreements are also affected by the question of whether the relevant clauses in those agreements are permissible.
- For SMEs Without an in-house HR department, it is particularly important to monitor developments, as flawed remuneration structures can lead to claims for back pay.
When will the decision be made?
The hearing is scheduled for 18 November 2026 at 10.00 am before the 5th Chamber of the Federal Labour Court. A judgement, or at least a landmark decision, is expected following this hearing. We will report on the outcome.
Any employee or employer affected by similar remuneration arrangements should seek legal advice in advance to assess their own situation.
This article was created with the help of AI and has been editorially reviewed.
