Pension dispute in the DRK: Court dismisses employee's lawsuit!

Pension dispute in the DRK: Court dismisses employee's lawsuit!

Things seem to be going haywire in labor law at the moment, as the German Red Cross (DRK) in particular is facing several lawsuits. The Oldenburg labor court has recently dismissed a lawsuit brought by an employee of the DRK sponsoring company who demanded compensation because he was of the opinion that the DRK sponsoring company had to register him with the federal and state pension fund (VBL). However, this registration for a company pension was not made, as Weser Kurier reports.

The plaintiff, who has been working in a managerial position at the DRK sponsoring company since the beginning of 2017, had legal support in the form of a letter from a commercial law firm stating that the DRK Oldenburg-Land district association was included in the VBL. However, this was vehemently denied by the DRK district association because, in their view, there was no legal basis for insurance with the VBL.

Financial worries and possible consequences

In the context of this lawsuit, the DRK has already had financial difficulties in the past. An employee of the DRK senior center in Harpstedt had also sued for outstanding pension payments, which, if the plaintiff had been proven right, could have included a sum in the millions for the repayment of pension insurance contributions. The decision was made in favor of the DRK district association, as Kreiszeitung reported in detail. The lawsuit could therefore not be successful because the non-profit sponsoring company was not a member of the additional fund.

In particular, a defeat in the current case could have dramatic financial consequences for the DRK district association in Hude. This had already been saved from insolvency in 2019 by a loan from six other DRK district associations amounting to 250,000 euros. This raises the question of how sustainable the DRK's financial situation actually is and whether there is a risk of further lawsuits from employees who could potentially claim a company pension in the future. If another employee's lawsuit is successful, financial claims from another 80 employees could follow.

Background and challenges

The DRK is not only under pressure locally in Oldenburg. There have also been some high-profile legal disputes in Plön recently regarding employee rights. As part of preliminary insolvency proceedings, several terminations were issued there, which led to the initiation of dismissal protection lawsuits. The Kanzlei SHB reports on a total of 45 procedures carried out, all of which were decided in favor of the employees. This makes it clear that the DRK is struggling not only with financial but also with legal challenges in various regions.

The current situation is likely to be a nightmare for both the DRK employees and the management of the facilities. While the labor courts decide in favor of the employees, uncertainty remains high about developments in the DRK and its future prospects. It is difficult to estimate the outlook for a possible agreement or new legal disputes - but one thing seems clear: something is going on and the DRK may have to fight hard for its financial health.