On March 7, 2025, Germany observed Equal Pay Day, symbolizing the persistent gender pay gap, which stood at 16% in 2024—a decrease from 18% in prior years, marking the sharpest drop since 2006, according to the Federal Statistical Office. Adjusted for factors like industry, qualifications, and working hours, the gap remains steady at 6%. This…
Contingency fees in small claims: The majority of German lawyers do not use opportunities offered under 2021 legislation
Since the German Legal Tech Act came into force in October 2021, allowing lawyers to charge success-based fees and cover clients’ legal costs in certain cases, these opportunities have been rarely used. A recent survey conducted by the Federal Bar Association (BRAK) as part of the law’s three-year evaluation found that most lawyers have not…
European Court of Justice rules that the German prohibition of investing in a law firm for purely financial purposes is justified by the regulatory objective to ensure the independence of lawyers
In the long-awaited judgement in the case Halmer ./. Rechtsanwaltskammer München (Case C-295/23) delivered on December 19, 2024, the European Court of Justice (ECJ) ruled that a national law prohibiting the participation of purely financial investors in a law firm does not contravene against EU-law. The Court concluded that this restriction of the freedom of…
Advocate General at the European Court of Justice considers German rules on third-party ownership of law firms
In May 2023, the Bavarian Higher Lawyers’ Court requested a ruling from the European Court of Justice on an issue which has important implications for third party ownership of law firms in Germany. The ruling relates to the question of whether an Austrian company which is not authorised to provide legal advice services is nonetheless…
European Court of Justice oral hearing on the German ban of third-party ownership of law firms
On April 30, 2024, the oral hearing regarding the German prohibition of third-party ownership in law firms took place before the Grand Chamber of the European Court of Justice (ECJ). The case (Halmer ./. Rechtsanwaltskammer München) concerns a decision made by the Munich Bar in 2021, when the latter revoked the admission of the law…
Germany sees another decline in the number of concluded lawyer, legal assistant and notary assistant training contracts
In 2023, the number of newly concluded contracts for legal training or legal and notary assistant positions decreased, according to statistics published by BRAK. These figures, based on feedback from bar associations to the Federal Institute for Vocational Training (BIBB), account for contracts finalised between October 1st of the previous year and September 30th 2023….
The German Federal Bar Association advocates for criminal procedure reform
The German Federal Bar Association (BRAK) is advocating for comprehensive reforms to criminal law and criminal procedure to better utilize the potential of digitalization in criminal proceedings. The BRAK has presented specific reform proposals for the Code of Criminal Procedure, focusing on electronic file management, file inspection, and AI-supported investigation methods. The proposals aim to…
German Regulator brings in Federal Lawyers’ Act (BRAO) reform
The BRAO reform came into effect on August 1st and will alter more laws than just the Federal Lawyers’ Act. The new BRAO no longer primarily focuses on the individual professional, but assumes that the professional training company is the central organizational form. these central organisations must take our organisational insurance. This means that the…
Cologne courts raise questions over the legality of legal bots
A challenge against a ‘legal bot’ mounted by the Hanseatic Bar Association Hamburg – a self-governing body representing over 10,000 lawyers in Hamburg, has proved successful in the regional court of Cologne. In October the court found that the bot, an online contract generator, was in effect providing legal services. They ruled that this was in…
BRAK sets up new committee on legal tech
The 7th Statues Assembly, “the parliament of the legal profession” of the Bundesrechtsanwaltskammer (BRAK) held its inaugural meeting on November 4th 2019. Through a clear majority, the assembly voted to not only retain all previously established committees but also to set up a new 7th committee on legal technology. For more information about the new…