Germany’s defense sector is entering a new era – with major employment implications

Against the backdrop of the ongoing war in Ukraine and fundamentally shifting geopolitical alliances, Germany's defense sector is experiencing unprecedented growth – with the Bundeswehr special fund and recent spending reforms set to create around 200,000 new jobs. For companies looking to enter or expand their business in this market, this opens up significant opportunities – but also poses a host of employment law complexities and considerable implications for HR departments.

Our latest briefing cuts through the complexity, covering the key considerations for businesses operating in this space: from security clearance requirements and trade secret protection to specific grounds for dismissal, working time schemes (and documentation obligations), works council co-determination, and the implications of the recently passed Federal Collective Bargaining Compliance Act (𝘉𝘶𝘯𝘥𝘦𝘴𝘵𝘢𝘳𝘪𝘧𝘵𝘳𝘦𝘶𝘦𝘨𝘦𝘴𝘦𝘵𝘻).

If you are exploring opportunities in Germany's defense sector – or already navigating its challenges – we would be delighted to discuss how these developments could affect your business. 

We invite you to read our attached A&O Shearman client alert for a better understanding. 

If you have any questions or would like to discuss what this could mean for your organization and how you may want to prepare, our team is here to help.