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Employment Litigation Contract Terms Germany

Morgan Lewis

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

Morgan Lewis on

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

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

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

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

German Federal Labor Court: Employers May No Longer Cite ‘Better Negotiating Skills’ as an Argument for Unequal Pay

In the past, the argument was often made that a female employee might not be entitled to a differential compensation claim due to lower pay compared to a male colleague, if the higher salary of the male colleague who...more

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

German Federal Labor Court States Employers Must Provide Employees With Work Equipment

On November 10, 2021, Germany’s Federal Labor Court (Bundesarbeitsgericht) ruled (Case No. 5 AZR 334/21) that employers must provide employed bicycle couriers with all the equipment essential for the performance of their...more

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