Legal Disputes in Employment Law: Analysis of the Ruling AZR 18/25

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Decision 6 AZR 18/25 – Extended Review of a Recent Decision by the Federal Labor Court

On June 13, 2024, the Federal Labor Court (BAG) published its decision in the case with file number 6 AZR 18/25. The reasoning of the judgment addresses key questions of labor law and contributes to the development of judicial practice regarding the exclusion of wage replacement claims by contractual and collective agreement provisions. Against the backdrop of relevant legislation and taking into account applicable requirements under Union law, the decision provides valuable guidance not only for labor law practitioners, but also for companies, HR managers, and investors.

Initial Situation of the Proceedings

At the core of the legal dispute was the claim of an employee against her employer for continued remuneration during a period in which the employee was unable to perform her work due to an officially ordered quarantine. The legal assessment primarily revolved around the question of whether, and to what extent, the employer is obligated to continue pay when the employment relationship is interrupted by external circumstances not caused by the business, and the contractual or collective bargaining agreements do not contain explicit provisions for such cases.

Legal Basis and EU Law Implications

Nationale Rechtslage

According to Section 616 Sentence 1 of the German Civil Code (BGB), an employee’s claim to remuneration does not lapse in cases of a temporary inability to provide services “if the hindrance is caused by a reason inherent to the person and is not the employee’s fault.” This provision may be excluded by individual contract, collective agreement, or works agreement.

Influences of European Union Law

The proceedings also touched upon EU law requirements, particularly with regard to the principle of equal treatment and the stipulations of the European Union’s working time directives. The BAG clarified that national exclusion clauses and the possibility to derogate from Section 616 BGB are generally compatible with EU law, provided that employees affected are not subjected to unreasonable disadvantage.

Content and Scope of the Decision

Temporary Incapacity – Exclusion of Wage Claims

In the present case, the employer had expressly excluded Section 616 BGB by means of an employment contract. The BAG confirmed that such an exclusion is effective, resulting in the employee having no claim to continued payment for the period of quarantine. This gives companies leeway to formulate contractual provisions clearly. At the same time, statutory and collectively agreed provisions must be observed in order to avoid prohibited disadvantages and possible ineffective clauses.

Need for Precision in Contractual Provisions

The decision emphasizes that employment contract terms deviating from the default legal situation must be drafted clearly and understandably. Unclear or ambiguous exclusion clauses may be interpreted against the party using them. Both companies and employees should therefore review to what extent their employment contract arrangements are in harmony with legal requirements and the respective collective legal framework.

Impact on Future Contract Drafting

Future contracts and collective agreements will increasingly have to meet demands for transparency and clarity. Labor court case law thus sets a high standard for the protection of both parties’ interests and helps to avoid legal uncertainty in employment relationships.

Practical Importance for Companies and Employees

For companies, investors, and high-net-worth individuals, this decision creates scope for action, but also duties: Contract templates and employment conditions can and should be regularly checked for their effectiveness and adapted to the current legal situation. Companies are well advised to ensure that their contractual options are utilized but are not undermined by unclear wording or inadmissible clauses.

Ongoing Developments – Notice of Current Proceedings

It should be noted that further, future proceedings may lead to more precise definitions and expansions of the principles established here. The development remains dynamic, especially due to the changing world of work and new labor law challenges.


Should specific questions arise from the case law presented or from individual contractual arrangements, the team at MTR Legal Rechtsanwalt is available with extensive practical experience in labor and commercial law and reliably assists clients in all matters relating to employment relationships. A tailored legal review can help create legal certainty in an increasingly complex legal environment and achieve business objectives.

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