Current status of the proceedings 8 AZR 117/24 before the Federal Labor Court
On June 13, 2024, the Eighth Division of the Federal Labor Court (BAG), under the file number 8 AZR 117/24, published a further procedural step in an ongoing legal dispute. The subject matter of the proceedings is the validity and permissible employment law grounds of an ordinary dismissal as well as the validity of a possibly additionally concluded termination agreement with an employee. The proceedings are therefore expressly subject to further legal review and decision by the Federal Labor Court.
Background of the case and previous proceedings
The labor court proceedings 8 AZR 117/24 concern legal disputes in connection with the termination of an employment relationship by an employer. While the precise facts are still subject to the court’s final determination, the employee concerned has challenged the validity of the ordinary dismissal issued. At the same time, a termination agreement that may have been agreed upon between the parties is also being reviewed.
In the course of previous proceedings, the Regional Labor Court (LAG Hamburg) was already involved in the dispute and rendered a decision on February 8, 2024 (Case No.: 3 Sa 17/23). The details of this decision and its reasoning will be incorporated into the ongoing proceedings before the Federal Labor Court.
Legal issues
Admissibility and appropriateness of the dismissal
The central legal question is whether the dismissal issued by the employer meets the requirements of the German Protection Against Unfair Dismissal Act (KSchG) and whether the formal and substantive conditions for an effective termination of the employment relationship have been fulfilled. This includes, in particular, the proper hearing of the works council in accordance with § 102 BetrVG, the consideration of special protection provisions in favor of specific groups of employees, as well as compliance with the written form requirement under § 623 BGB.
Effectiveness of a supplementary termination agreement
An additional aspect of the proceedings concerns a termination agreement that may have been subsequently entered into between the parties. In the course of its further review, the court will have to consider whether the termination agreement was effectively concluded and whether all mandatory formal requirements—including with regard to a possible revocation or contestation—were observed. Termination agreements often give rise to questions about voluntariness, compliance with deadlines, and potential situations of being taken by surprise, all of which the court must examine.
Continuation of the employment relationship and claims due to default of acceptance
Until the matter is judicially clarified, there is generally uncertainty regarding the continuation of the employment relationship. This may have significant consequences for claims for remuneration due to the employer’s default of acceptance (§ 615 BGB) or for possible severance payments. It is up to the further course of the proceedings to determine whether and to what extent such claims exist.
Relevance of the decision and significance for practice
Impact on the structuring of employment contract terminations
The 8 AZR 117/24 proceedings are of considerable importance regarding the contractual and legal framework conditions for the termination of the employment relationship. The decision is expected to clarify under which circumstances a termination agreement, parallel to a dismissal, is permissible and effective, and to what extent employees are able to defend themselves against such a combination.
Legal certainty for companies and employees
The anticipated decision will provide clarity for both employers and employees regarding the requirements for the legally secure termination of employment relationships. This will offer companies specific guidance on how to structure future employment contract terminations transparently and with legal certainty.
Current status of the proceedings and outlook
As the proceedings are currently still pending before the Federal Labor Court, it must be expressly noted that the final judicial assessment, particularly of the facts and legal situation, has not yet taken place. The presumption of innocence and the principle apply that only with a final, binding decision by the Federal Labor Court will a definitive ruling be made on the validity of the dismissal and/or any termination agreements.
Source
The information on the status of the 8 AZR 117/24 proceedings is based on the official communication of the Federal Labor Court: 8 AZR 117/24 – Federal Labor Court.
For legal questions regarding the termination of employment contracts, dismissals, or termination agreements, the team of MTR Legal Rechtsanwalt supports companies, investors, and high net worth individuals with extensive experience in employment and commercial law.
