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Employee Benefits › Germany › Employment Litigation

Latham & Watkins LLP

German Federal Labour Court Rules on Virtual Share Options and Exit Bonuses

Latham & Watkins LLP on

The German Federal Labour Court has tightened its case law. According to a decision from 19 March 2025 (10 AZR 67/24), the reasons for which were only recently published, employees may be entitled to an exit bonus even if the...more

Orrick, Herrington & Sutcliffe LLP

No Waiver of Statutory Minimum Leave Through Court Settlement

Orrick, Herrington & Sutcliffe LLP on

On June 3, 2025, the Federal Labor Court (Bundesarbeitsgericht) ("BAG") ruled that employees are entitled to financial compensation for outstanding statutory minimum vacation days. Even if a court settlement includes an...more

Morgan Lewis

German Federal Labor Court Strengthens Employee Rights for Virtual Stock Options upon Employment Termination - Legal Insights...

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In its ruling dated March 19, 2025, the German Federal Labor Court (BAG)—in contrast to the two previous instances and contrary to its previous case law—deemed an expiry clause in general terms and conditions to be...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

German Federal Labor Court Finds Certain Virtual Stock Option Forfeiture Clauses May Unreasonably Disadvantage Employees

Ogletree, Deakins, Nash, Smoak & Stewart,... on

On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht or BAG) held in Case No.: 10 AZR 67/24 that certain forfeiture clauses in General Terms and Conditions of Business (Allgemeine Geschäftsbedingungen or...more

King & Spalding

VSOPs – the End of Bad Leaver Clauses in Germany?

King & Spalding on

Virtual Stock Option Plans (VSOPs) are a common tool used by companies to incentivize employees by linking part of their compensation to the company’s long-term success. Unlike traditional stock options, VSOPs do not grant...more

Orrick, Herrington & Sutcliffe LLP

Lapse of Virtual Stock Options in the Event of Voluntary Resignation – Good Leaver or Bad Leaver?

Orrick, Herrington & Sutcliffe LLP on

On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht) ("FLC") ruled that a provision in an employee stock option plan providing for the immediate forfeiture of vested virtual stock options in the event of...more

Paul Hastings LLP

Ruling of the German Federal Labor Court on the Invalidity of Expiry Clauses in ESOP/VSOP - Applicability of the Ruling to MEPs

Paul Hastings LLP on

On March 19, 2025, the German Federal Labor Court ("BAG") ruled that clauses that qualify as general terms and conditions and stipulate that virtual option rights that are already vested at the time of termination of an...more

Orrick, Herrington & Sutcliffe LLP

To-Do’s for Employers in Germany: No Limitation of Vacation Claims Without Prior Notice

Orrick, Herrington & Sutcliffe LLP on

Today, the German Federal Labor Court (Bundesarbeitsgericht) ("FLC") made two important decisions on vacation which are of great importance for employers in Germany: In the first decision (9 AZR 266/20), the FLC held that...more

Littler

Littler Global Guide - European Union - Q2 2018

Littler on

German Church's Religious Occupational Requirement Subject to Judicial Scrutiny - Precedential Decision by Judiciary or Regulatory Agency - On April 17, 2018, the European Court of Justice (CJEU) held that German laws...more

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