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Definitely true for the legal situation in Germany. An early rejection can be enough for a compensation payment of three gross salaries.

It's actually a common practice for some to apply on jobs with completely under-qualified resumes and sue the companies after getting an early rejection for discrimination.

Really? I never heard of that! On what basis are they suing?

There's the AGG (Allgemeines Gleichbehandlungsgesetz) in Germany. It's enough to not include the feminine form of a job title or feminine pronouns in a job advertisement to sue the company after a rejection because of discrimination if you happen to be a woman. Instead of the gender, you can of course also assert the rejection was because of race, age, sexual orientation and so on.

What I find weird about this (as a Canadian) is that in Germany the standard seems to be to include a photo in your application.

(German legislation) I don't know the sources (probably many court rulings, not a law by itself), but I have heard that quite often: don't explain why a person was rejected, just say that you're sorry.

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