Attachability of the Corona Special Bonus Payment: Landmark Decision by the Federal Court of Justice and Practical Implications
With its decision of May 25, 2023 (Case No. IX ZB 24/22), the Federal Court of Justice clarified that the Corona special bonus paid to civil servants in Lower Saxony is, in principle, subject to creditors’ access within the framework of an attachment and transfer order. This judgment has far-reaching significance not only for those directly affected, but also for public employers and creditors. The following examines the background, legal classification, and key considerations of the decision in detail and highlights possible implications for practice.
Background of the Corona Special Bonus
As part of its efforts to address the COVID-19 pandemic, the State of Lower Saxony decided to grant its civil servants a one-time Corona special bonus payment in recognition of particular burdens. This payment was not offset against regular base salary and was treated as a tax-privileged benefit. The purpose of this bonus was to recognize the services performed during the pandemic and the associated hardships.
Legal Basis for the Attachability of Income of Public Employees
General Requirements
The possibility of compulsory enforcement against earnings arises from § 850 of the German Code of Civil Procedure (ZPO). According to this provision, employment income is generally attachable, but is often subject to special protective regulations that, for example, exclude minimum income or certain earmarked benefits.
Specific Regulation for Civil Servants
The protective provisions of §§ 850 et seq. ZPO apply accordingly to civil servants. These regulations include, among other things, a differentiation between non-attachable portions of salary or service remuneration and those components that are accessible to creditors. A special case here is made by earmarked benefits: if these are strictly intended to cover a specific additional need and are demonstrably paid for that purpose, they may, depending on their design, be non-attachable.
Assessment by the Federal Court of Justice
Core of the Decision
In its decision, the Federal Court of Justice emphasized that the Corona special payment for Lower Saxony civil servants does not constitute income that is unattachable pursuant to §§ 850a ZPO. Rather, there is a lack of sufficiently specific purpose-binding which could justify an exception from attachability.
Key Considerations
On the one hand, the court based its reasoning on the fact that the special payment does not cover a concretely identifiable additional expense, but was granted to a broad group of recipients. On the other hand, the payment is merely to be regarded as general recognition of the particular situation caused by the pandemic, without an individual assessment or differentiated means-testing having taken place.
For the classification as non-attachable income pursuant to § 850a No. 3 or No. 4 ZPO (hardship allowances, hazard allowances), a specifically targeted character and verification of the specific need would have been required. As these characteristics were not met, inclusion in the attachable portion of income is required.
Practical Consequences for Affected Groups
Implications for Civil Servants in Enforcement Proceedings
The decision by the Federal Court of Justice means that, for indebted civil servants, the Corona special payment is, in principle, not exempt from creditors’ claims. In ongoing attachments, the special bonus thus increases attachable income and may be used in enforcement proceedings to satisfy claims.
Significance for Creditors
The ruling offers creditors the opportunity to utilize additional assets to satisfy their claims. Depending on the amount of the special payment granted and the existing arrears, this may have considerable practical relevance.
State Employers and Administrative Bodies
Public employers must also take into account in payroll or salary processing that they may be obliged to remit the corresponding amounts based on valid attachment and transfer orders. Mishandling can result in liability risks.
Classification within the Balance of Creditor Protection and Social Compensation
Balancing of Interests
The judgment emphasizes the importance of balancing the legitimate interests of creditors in effective enforcement and the social protection of debtor income. Two aspects should be highlighted in this context:
- Protection of the subsistence minimum: Despite the attachability of the special payment, debtor protection is maintained through the exemption limits under § 850c ZPO.
- Relevance of Purpose-binding: The decision clarifies that clear and specific determination of purpose is required for exemption from attachment. General recognition bonuses are not considered non-attachable without further requirements.
Potential Effects on Future Special Payments
The decision may serve as a signal for the structuring of future bonuses and special allowances. Legislators and employers may, in future cases of particular additional burdens, consider whether a closer purpose-binding or allowance-specific provisions seem necessary to ensure exemption from attachment.
Summary and Further Developments
With the Federal Court of Justice’s decision, a landmark clarification on the treatment of pandemic-related special payments in enforcement law has been made. Affected civil servants, creditors, and public entities now face clear, predictable consequences with regard to the payment and attachment of bonus payments. In view of the continued spread of such special payments at the federal and state levels, it remains open whether and to what extent other state regulations may require differing assessments in individual cases. Legal questions, in particular regarding the handling of other supplements and the structuring of future performance bonuses, will need to be monitored further.
For detailed information and individual assessment of any legal issues in the context of attachment of special payments, the attorneys at MTR Legal, with extensive experience in public service law and enforcement law, are at your disposal.
