German court recognizes family caregiver as employee

The State Social Court of North Rhine-Westphalia has ruled that a family caregiver can be legally recognized as an employee under specific conditions. The decision follows a case involving a woman who provided regular care for her sister for several years.

Despite the compensation being derived from care allowance (Pflegegeld) and the hourly rate falling below the then-applicable minimum wage, the court determined that a genuine employment relationship existed. The sisters had established a written employment contract that included provisions for a probationary period, vacation, and notice periods. The caregiver worked 14 hours per week, and the court found that the familial connection and the source of the funds did not preclude employee status.