Regulatory Requirements versus Employment Law – Corporate Challenges for Compliance

Hans-Peter Löw

In Europe companies in highly regulated sectors increasingly face contradictory orders by regulatory requirements and employment law. Here are some examples:

• CRD IV requires a clawback of variable remuneration in case of subsequent misbehaviour. The German Federal Labour Court however does not allow the forfeiture or even clawback of remuneration based on events that occur after the bonus year.
• NYSE sometimes request monitoring of phone calls from employees to ensure compliance with embargo provisions. European privacy law principally forbids monitoring of phone calls.
• Deutsche Bank dismissed some employees who had manipulated the EURIBOR. The labour court ordered reinstatement on their previous positions whereas the German regulator BAFin issued an order according to which Deutsche Bank is not allowed to employ these employees in their previous positions.

How can companies cope with such contradictory orders? Your experience is highly appreciated.

Comments published on Employment Talk do not necessarily reflect the views of Allen & Overy.

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