Retrospective pay-grade classification under postal sector collective bargaining agreement

The Federal Labour Court partially upheld the employer’s revision, reversing portions of the Regional Labor Court’s decision while affirming the finding that the employee is entitled to remuneration according to Pay Grade 3, Pay Level 3 of the collective bargaining agreement for employees of the national postal service effective September 1, 2023; the employer is ordered to pay back wages of 575.09 EUR plus statutory interest, and bears the full litigation costs. The dispute concerned the correct classification of the employee’s job description under the relevant sectoral collective agreement, specifically whether the duties performed warranted a higher pay grade. The decisive legal basis involves the interpretation and application of the German Collective Agreements Act and the specific tariff rules of the postal sector, where the court determined that the contractual and factual basis supported the specific pay grade classification despite the employer’s contrary arguments.