In labor law matters, there is a special rule regarding the allocation of costs. Section 12a of the German Labor Court Act (ArbGG) stipulates that each party must bear its own legal fees (both out of court and in court proceedings at first instance) – regardless of the outcome of the proceedings. Even if you win, you are therefore not entitled to reimbursement of your legal fees from the opposing party after the proceedings.

However, Section 12a ArbGG does not apply to appeals (second instance). In these cases, if you lose, you risk having to bear all or part of the opposing party’s costs.

If you have legal expenses insurance, it will usually cover your legal fees. We are also happy to bill your legal expenses insurance company directly for the statutory fees. Please note that even with legal expenses insurance, you remain liable for the costs. Any costs not covered by your legal expenses insurance must therefore be paid by you.

Yes. Legal fees incurred during litigation can generally be claimed as “business expenses” under Section 9 of the German Income Tax Act (EStG). These costs must be taken into account, subject to the tax-free allowance.

If you are unable to cover the costs yourself, I will also represent you under the legal aid scheme. Please note that the labor court decides on your legal aid application, meaning it must deem your case promising and your resources insufficient.

Information on legal aid and the application forms can be found here: https://service.berlin.de/dienstleistung/327008/.

You must apply for a legal aid certificate yourself at the relevant local court before the consultation and bring your contribution of €15.00 with you. Further information on the legal aid application and the relevant court can be found here: https://service.berlin.de/dienstleistung/326037/.