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Tuesday, October 6, 2026

Labour law and gas crisis: Who bears the remuneration risk of a of a work stoppage due to energy shortages - Lexology

Introduction

The European gas crisis, triggered by the conflict in Ukraine, continues to present enormous economic challenges for the continent, particularly in Germany. The resumption of gas deliveries through the Nordstream 1 pipeline will do little to change this situation. Since the announcement that only around 20 percent of the previously usual gas volume will flow through the pipeline, significant doubts have arisen as to how reliable the deliveries will be from now on.

Rising energy costs and a throttling or even a shutdown of gas supply to companies outside the critical infrastructure is possible, meaning industry must be prepared for considerable cuts. Until now, energy policy debates have focused on the need to be prepared for the possible stoppage of gas supply. Some companies have announced plans to switch to other energy sources such as coal and oil or have developed other contingency plans regarding the utilisation of their production facilities. As a result of these developments, the focus is increasingly shifting to labour law risks, and options for action, because an escalation of the gas crisis could have serious consequences for both employees and employers.

Over a series of posts in the coming weeks, we will shed light on the most important aspects of German crisis labour law and what needs to be considered. The first blog post is dedicated to the question of whether employers are still obliged to pay their employees' salaries even if there are...



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