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Mon, 20.06.2005
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pte20050620025 Companies/Finance, Politics/Law
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Workers maintain right to flirt
US company's code violations law 're-written'

Frankfurt (pte025/20.06.2005/12:34) - A German court has overruled a section of the American supermarket chain Wal-Mart's law on code violations.

The court found that Wal-Mart's code of conduct that relates to employees' love lives, alcohol and drug use, and the stipulations that staff report code violations via a so-called ethics hotline, to be contradictory to German labour law.

The result was that Wal-Mart http://www.walmart.com staff in Germany is allowed to flirt at work, which is forbidden under the US clause, which says employees are to refrain from, 'any kind of communication that could be interpreted as sexual', both with colleagues and customers.

The court's decision has set a precedent for other American-owned companies with businesses in Germany, which ask their German employees to abide by laws that don't necessarily pertain to those of the host country.

Because German laws on data protection are more lax than in the US, German-based US business have had some problems with code-of-ethics laws.

Based in Wuppertal, Wal-Mart Germany had no immediate comment on the ruling. The company could post an appeal if it sees fit. A spokeswoman declined to comment, but pointed out that a written ruling had not yet been issued.

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