According to the case law of the Federal Labor Court (judgment of April 16, 2025 – 10 AZR 80/24), this is possible under certain conditions. Facts of the case The judgment of the Federal Labor Court is based on the following facts. The plaintiff was employed by the defendant, a company that deals with cryptocurrencies,...

An employee whose place of work is to be changed by means of a change of employment notice does not have to be offered the option of working from home as a milder alternative. This was determined by the Baden-Württemberg Higher Labor Court (LAG BW) in its ruling dated November 4, 2024. Facts of the...

In its decision dated March 19, 2025 (case no. 10 AZR 67/24), the German Federal Labor Court delivered a landmark ruling regarding  the forfeiture of virtual stock option rights after termination of employment. The ruling specifically addresses Employee Stock Option Programs (ESOPs) that included contractual clauses stipulating that virtual options would lapse when employment ends.....

The director of a retail store is not to be regarded as a senior executive within the meaning of Section 5 (3) of the German Works Constitution Act (BetrVG), even if she is authorized to hire and fire staff independently. This was decided by the Regional Labor Court of Hessen (‘LAG Hessen’) in a ruling...

If an employee spreads threats against ver.di via a private Facebook group comprising 1,000 colleagues, this justifies the ordinary termination of his employment relationship. This was decided by the Berlin Labor Court in a ruling dated October 7, 2024 (Ref. 59 Ca 8733/24 and 59 Ca 11420/24). Facts of the case The judgment of the...

According to a decision by the Federal Labor Court (Bundesarbeitsgericht, “BAG”), an impermissible temporary assignment of employees may also exist if an employee has been assigned to another group company for several years since the beginning of the employment relationship. Facts of the case The ruling of the BAG of November 12, 2024 (9 AZR...

The Baden-Württemberg Regional Labor Court (LAG) follows the case law of the Federal Labor Court (BAG), according to which a direct claim of a released works council member can arise from Section 78 sentence 2 of the Works Constitution Act (“BetrVG”) in conjunction with Section 611a (2) of the German Civil Code (“BGB”) if the...

The Regional Labor Court of Mecklenburg-Western Pomerania (“LAG”) clarified in its decision of May 15, 2024 – 3 Ta 21/24 that a dismissal from the position of managing director does not automatically turn the underlying contractual relationship into an employment relationship. Facts of the case The plaintiff was entered in the commercial register as a...

The Federal Court of Justice has confirmed that the managing director of a limited liability company (GmbH) with whom a post-contractual non-competition clause is agreed does not have to be guaranteed and later paid compensation. If compensation is nevertheless promised, the contracting parties are free to agree on the amount and can also effectively agree...

The chairman of a works council attends private appointments instead of a booked training course during his working time and subsequently makes false statements in his time recording, this justifies an extraordinary dismissal without notice due to working time fraud. This was held by the Higher Labor Court of Lower Saxony in a ruling dated...