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ARTICLE · 18 OCTOBER 2019

Effectiveness Of Preclusion Periods In Employment Contracts

Preclusion periods included in employment contracts to assert existing claims keep being the subject of labor court proceedings. In a more recent decision

GermanyEmployment and HR

Preclusion periods included in employment contracts to assert existing claims keep being the subject of labor court proceedings. In a more recent decision, the Federal Labor Court specified not only the consequences of a lacking exception of the statutory minimum wage and the conditions for legally abusive reference to the forfeiture of claims, but also the requirements to properly assert claims to maintain the first stage of a two-stage preclusion period.

Federal Labor Court, judgment of April 17, 2019 - Case 5 AZR 331/18

The plaintiff was employed by the defendant as Head of the Technology and Application Technology Division from June 1, 2012 to March 31, 2017. The employment ended due to the plaintiff giving notice of termination. The employment relationship was based on a written employment contract dated February 20, 2012, which provided for an annual gross salary of EUR 102,000.00 and a performance-related bonus of EUR 15,000.00. The

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