Germany: Government proposes new measures on employee financial participation

In April 2008, the Ministry of Labour announced a package of measures to enhance the scope for employee financial participation in companies, following recommendations from a working group made up of all the parties in the Christian Democrat-Social Democrat coalition government.

Although financial participation is an issue that has been reviewed several times during the past three decades, the legal framework that promotes employer-sponsored savings and other forms of employee “capital formation” has been untouched for over a decade.