The bill – now called the “General Equal Treatment Act – Allgemeines Gleichbehandlungsgesetz, or AGG), which outlaws discrimination on the job on the grounds of sex, race, ethnic origin, religious belief, age, handicap or sexual identity, is feared by many observers to lead to a substantial increase in litigation as, inter alia, employees now find it much easier (and attractive) to sue their employers on grounds of alleged discrimination. Under the new law, employees can pick up up to three months’ salary from a (prospective) employer if they are successful on a discrimination claim.

Therefore, it is imperative that employers carefully analyze their existing procedures and structures in the HR sector and, if necessary take the necessary measures to adopt or modify their procedures and structures to avoid or minimize the risk of being sued under the AGG.  The real challenge faced by practicioners in HR departments and labor lawyers alike, however, is how to deal effectively with the very loose and open-ended language in many provisions of the AGG. In particular, the members of the management board and other managerial employees must be trained how to handle situations where anti-discrimination claims are likely to occur. Such persons should be provided with manuals or other guidance materials on how to deal with such situations on a day-to-day basis. Furthermore, an employer must be able to prove that he has instituted adequate measures and structures to avoid or minimize discrimination claims.