These costs arise during the reminder procedures involving labor law issues:
|About the costs in general|
labour law reminder procedures both sides - the debtors and creditors
– must bear the court costs and the attorney fees themselves. This is in
contrast from civil court cases and means that even
when the creditor can enforce a claim and the debtor repays the debt, the
court- and attorney costs must not be
paid by the debtor.
Legal expense insurance – If you have legal expense insurance that includes labour law matters, this insurance will as a general rule cover the expenses for the labour law reminder procedure.
|Costs prior to labor court proceedings|
Pre-labour court costs are expenditures that arose before requesting the reminder procedure, e.g. your prior efforts in requesting your employer to pay wages and salaries owing.
Typical pre-labour courts costs include:
|Costs for obtaining a legal court order and execution|
Calculation of court costs – Labor court charges for issuing a legal
late-payment notice depend on the amount of the claim:
Delivery charges – In addition to the legal expenses, a € 4.50 fee is charged for delivering the court order to the debtor. If there are several debtors, this expense is charged for each debtor.
Charges for the enforcement order – If an enforcement order is needed following a court order because the debtor fails to comply with the payment obligation, no additional legal fees arise to issue an enforcement order.
Maturity of the charges – Legal expenses are considered by the courts upon completion of the dunning.
Charges for the lawsuit - If the debtor files an objection or protest against one of the orders, the proceeding will enter into a lawsuit. For the labour court procedure there are expenses which are credited against the dunning costs. Here legal expenses can be as high as 4.7-fold of the dunning costs. For example, if the claim amount is € 2,500, then 50,00 € is due for the issue of the court order or the enforcement order. There is normally an additional € 75 charge for a possible subsequent lawsuit.
Payment by the debtor – Legal expenses must be paid in all cases by the creditor or the creditor’s defence insurance, even if the debtor settles the claim completely thanks to the dunning procedure.
|Charges for retaining an attorney|
Calculation of attorney’s fees – If you retain an attorney to issue a
late-payment notice, the attorney’s fees and court expenses are based on the
amount of the claim:
Extent of attorney services - The attorney fees cover services for the entire dunning procedure.
Charges for enforcement order - If an enforcement order is required following a court order because the debtor does not comply with the obligation to pay despite the court order, the attorney will levy an additional 0.5-fold charge for issuing an enforcement order based on the claim amount.
Charges for the lawsuit – If the debtor files an objection or protest against one of the orders the proceeding will enter into a lawsuit. The attorney must substantiate in writing why the claim is justified. Here the attorney receives another 0.3-fold charge.
Additional charges occur if a court hearing becomes necessary. A 1.2-fold charge must be paid if a court hearing occurs where the debtor is present or represented. A 0.5-fold charge must be paid if the debtor is not present or represented.
Payment of the debtor – All attorney fees for the court order or enforcement order must be paid by the creditor or the creditor’s legal insurance even if the debtor fully settles the claim thanks to the dunning procedure.
All information is presented to the best of our knowledge. We assume no responsibility for its correctness.