The organisation asked members to sign a petition with the German Bundestag in response to what it describes as an ‘eroneous decision’ of the Federal Social Court which denied in-house counsel permission to participate in bar association pension schemes, due to their asserted lack of independence. The judgment means that company lawyers will be forced to participate in the government pension system rather than allowing them to obtain the benefit of bar association pensions, ACC says, adding that in treating corporate lawyers differently from other lawyers, ‘the Court mistakenly reasoned that company lawyers were less independent than their outside counterparts.’

Enormous ramifications

It points out that the ramifications of the decision are enormous and will have a bearing on recruitment, with in-house positions being seen as less attractive. ‘Treating in-house counsel as second-class citizens in the bar undermines society’s interest in encouraging compliance with the law, as in-house counsel are best situated to ensure that outcome,’ the association says. And it adds that the decision meant that both external and internal lawyers would now have to consider the pension impact of any career move within the legal profession and the stigma of not being independent could make an in-house job less attractive.The action was taken by ACC in association with its European Chapter. Source: ACC