Increasing the Efficiency of the General Equal Treatment Act - an Economic Analysis

Hartmut H. Frenzel, PhD Student at UMIT – University for Health Sciences, Medical Informatics and Technology, Hall in Tyrol, Austria

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Discussant: Nuno Garoupa

Abstract

This paper examines the verdict in the case of Mrs. Sule Eisele Gaffaroglu versus R. V. Lebensversicherungs AG, Wiesbaden Labour Court.

The economic analysis of law focuses on the three main paragraphs of the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz – abbreviated to AGG): § 22 - Burden of proof for the plaintiff and reversing the onus of proof to the defendant, § 15 Para. 1 – Compensation of material losses and § 15 Para. 2 – Monetary compensation for non-economic loss.

The analysis of the verdict concludes that the AGG, in the version currently in force, is not efficient. However, this paper also suggests possible ways of increasing the efficiency of the AGG.