Tag Archives: Federal Labour Court

Bonus agreements in Germany – Courts may determine amount of bonus payment instead of employer

The interpretation of bonus clauses in German employment contracts is a never-ending fountain of judicial discussions and disputes. Employers always try to achieve the greatest level of flexibility possible while employees naturally seek clear conditions that guarantee that the agreed bonus is paid once certain requirements are met. In light of recent cases in the … Continue Reading

General Compensation Clause in German Settlements Prevents Claims to Holiday Compensation

Since the decision of the Federal Labour Court (file no.: 9 AZR 844/11) on 14 May we finally have clarity around a longstanding question.   If a settlement is agreed that contains a clause which stipulates that all claims resulting from the employment relationship are excluded, this also covers holiday pay claims, according to the most … Continue Reading