Data protection violations can lead to significant claims for damages under Art. 82 GDPR – even for intangible, non-pecuniary damages. More and more courts are awarding substantial amounts: In one recent case, a hospital was awarded €8,000. Legal expenses insurance often covers these costs – it is important that the coverage confirmation is obtained from a specialized lawyer. Our employment law firm is available to assist you nationwide.

What happened?

An HIV-positive patient was hired as an employee by the clinic after treatment. The clinic made a serious mistake: The new employee's sensitive health data was not adequately protected. For several weeks, various clinic employees had access to the so-called "patient cover sheet," which, among other things, included the diagnosis "HIV"—albeit in a difficult-to-read format.

Even if only the name, address, health insurance provider, and the three-letter abbreviation "HIV" were visible, this sensitive data set should have been blocked. The clinic downplayed the incident, pointing out that only a few people had access and that they were sworn to confidentiality. But that doesn't change the fact: an employee's HIV diagnosis is not intended for colleagues to know. Even in the medical field, the right to informational self-determination applies without restriction – especially with highly stigmatizing diagnoses like HIV.

The disclosure had consequences: The behavior of colleagues changed noticeably, underscoring the severity of the data protection violation. The €8,000 compensation awarded under Art. 82 GDPR could have been even higher under certain circumstances – for example, if additional health data had been affected.

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In the event of data protection violations in the workplace, we provide expert support in enforcing your claims – including compensation. Rely on our experience in employment law and let us work together to protect your sensitive data.

Groundbreaking ruling in data protection law: €8,000 in damages awarded

For a long time, German courts were reluctant to award compensation for non-pecuniary damages caused by data protection violations. Such cases were often considered trivial, and only in exceptional cases were a claim for compensation recognized. However, this restrictive stance contradicts the clear intention of the EU legislature.

The Federal Constitutional Court already made it unequivocally clear in its ruling of January 14, 2021 (case no. 1 BvR 28531/19): Courts may not categorically reject claims under Art. 82 GDPR on the grounds of allegedly unprovable damage. Even abstract, non-material damage can lead to a claim for compensation for pain and suffering – serious damage is not required.

The ruling, in which a victim was awarded €8,000, is among the highest amounts of compensation for a data protection violation in Germany to date. It marks an important turning point in the handling of violations of personal rights caused by the improper handling of sensitive data.

Article 82 (1) of the GDPR requires compensation for violations of data protection regulations – regardless of whether the damage is material or immaterial. Since the GDPR came into force on May 25, 2018, data protection has thus acquired a new, legally enforceable protective function.

Has your data protection been violated? We enforce your rights.
Whether you need compensation, revocation, deletion, or blocking of your data: Our experienced employment law attorneys are at your side – with commitment and legal expertise.

Conclusion: Do not ignore compensation for data protection violations

Anyone affected by a data protection breach should not only insist on the correction or deletion of their data, but also consider possible claims for compensation. According to Art. 82 GDPR, even non-material damages are eligible for compensation.

Legal expenses insurance often covers the costs incurred – provided the insurance coverage was already in place at the time of the violation and the waiting period has expired. To increase the chances of success in obtaining reimbursement, the coverage request should be submitted through an experienced law firm.

Our law firm, which specializes in labor law, supports you nationwide in enforcing your claims—from blocking or deleting your data to claiming compensation for pain and suffering.

Has your data been misused at work?
We enforce your rights – competently, with commitment, and nationwide. Trust our experience in labor law and receive professional advice.

Employee Share Purchase Plans (ESPPs) are an effective tool for both strengthening employee loyalty and encouraging financial participation. Through discounted share purchases—often through salary deferred compensation or special discounts—employees can directly participate in the company's success.

As a law firm specializing in employment law, we provide comprehensive advice on the implementation, legal design, and ongoing administration of stock purchase plans. We take your company size, industry, and individual employee structure into account, ensuring the plan and implementation are optimally tailored to your needs.

What is an ESPP?

An Employee Share Purchase Plan (ESPP) is a stock purchase program for employees. It allows employees to purchase company shares through payroll deductions or separate contributions—often at a discounted price or with other benefits. Participation is generally voluntary and takes place within specified purchase periods.

Would you like to introduce a participation model for your employees? We'll assess whether an ESPP is a good fit for your company structure.

Benefits of an ESPP for companies and employees

• Stronger employee loyalty
  Direct ownership of the company increases employees' sense of ownership. Those who hold company shares pursue the same goals as management—a clear advantage for corporate culture and long-term employee retention.
• Attractiveness as an employer
  An ESPP makes your company particularly competitive in the job market. Employees value such plans as a valuable additional benefit – similar to bonuses or employer-sponsored pension plans.
• Tax advantages for the company
  Non-qualified ESPPs can provide tax relief under certain conditions, making compensation strategies more efficient and creating incentives for employees.
• Simple implementation
  Compared to stock options or restricted stock units (RSUs), ESPPs are generally easier to implement, especially when they are implemented through existing shares or stock market purchases and no new shares need to be issued.

Possible disadvantages and employment law challenges

Regulatory burden on listed companies
For listed companies, an ESPP must be designed in strict compliance with regulations. This particularly applies to insider trading laws, disclosure requirements, and restrictions under corporate law.

Limited flexibility in the event of termination or departure
The question often arises as to how previously acquired shares will be handled when an employee leaves the company. Clear employment law regulations are necessary to avoid future conflicts.

Social security and tax obligations for employees
Depending on the terms and conditions, the discounted share purchase may be subject to tax, which can have disadvantages for employees. A legally sound contract is particularly important in this case.

Administrative costs for international deployment
If companies offer an ESPP across borders, different national labor and tax law requirements must be taken into account – a complex effort that is difficult to manage without specialist support.

Use ESPPs in a targeted and legally compliant manner

An Employee Share Purchase Plan can be an effective tool for increasing employee retention and motivation – provided it is designed with legal clarity, integrated into tax regulations, and strategically aligned with the company's needs. Our employment law firm supports you in the legally compliant implementation, ongoing administration, and optimization of share purchase plans – both nationally and internationally.

Would you like to introduce an ESPP or have existing models reviewed? Our employment law experts will provide you with personalized, practical, and legally sound advice. Schedule your initial consultation now!