A company was ordered to pay compensation under the AGG (General Equal Treatment Act) because a customer refused to work with a female employee because of her gender. The Baden-Württemberg State Labor Court deemed this unlawful discrimination based on gender and awarded the affected employee compensation. Learn more about the background to the ruling now!
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AGG compensation awarded: Client prefers male consultant – company liable
An employee received compensation under the General Equal Treatment Act (AGG) because a female customer explicitly refused her advice – solely on the basis of her gender. Instead, the customer requested a male contact person. The Baden-Württemberg State Labor Court considered this unlawful gender-based discrimination and ordered the company to pay the compensation.
Find out here what consequences companies should draw from the ruling!
AGG compensation: Architect receives compensation for discrimination by construction company
An architect working in the sales department of a construction company was assigned to a prospective client through an internal support system. However, the prospective client declined to work with the architect, as she did not want a female consultant, and instead contacted the company's regional manager directly. The manager decided to take over the client's support himself and excluded the architect from the project.
Despite the exclusion, the architect filed an appeal and attempted to contact the prospective builder again, but this was unsuccessful. The prospective builder reiterated her desire for a male consultant and stated that she had a "bad feeling" after the conversation with the architect. Although she regretted her original wording, she maintained her preference for a male consultant. As a result, the architect was permanently excluded from the service and thus also forfeited any potential commission.
In response to what she considered gender-based discrimination, the architect demanded compensation of €84,300 under the General Equal Treatment Act (AGG). However, the Freiburg Labor Court dismissed the claim. In contrast, the Baden-Württemberg State Labor Court ruled (judgment of November 20, 2024, case number 10 Sa 13/24) that the architect was indeed disadvantaged by the withdrawal of jurisdiction and awarded her compensation of €1,500. The court found that the construction company should have fulfilled its duty of protection under labor law toward the architect. It was unjustified to comply with the prospective builder's discriminatory wishes without emphasizing the architect's qualifications and further seeking clarification.
The ruling demonstrates that employers have a duty to protect their employees from discrimination by third parties, such as customers. Failure to comply with this duty can be considered direct discrimination, leading to claims for compensation. The ruling is not yet final, as an appeal to the Federal Labor Court has been granted.
The conclusion of this case is that employers cannot ignore discriminatory statements or customer requests. They have a duty to take proactive action to protect their employees and avoid discrimination, as failure to do so could lead to legal consequences.
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