German Federal Labor Court Emphasizes Case-by-Case Assessment of Release Clauses
Quick Hits The German Federal Labor Court held that blanket release clauses in employment contracts that entitle the employer to grant a release upon termination constitute an unreasonable disadvantage and are invalid. An employee’s interest in continuing employment until the termination of the employment relationship generally outweighs an employer’s interest in granting the employee a leave of absence in a terminated employment relationship until the expiration of the notice period.…

