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Interesting decision of the LAG Hessen on the entitlement to a special bonus. Caution when drafting compensation clauses

20. December 2021
From Probandt
Reading time: ca. 1 Minute

The LAG Hessen has published on 25.06.2021 an interesting decision (LAG Hessen judgment of 25.06.2021 - AZ: 14 Sa 1403/20), which could play a role for so many just at the end of the year.
When employment contracts are terminated, it is very common for termination agreements to be concluded. In these it is regulated, when the employer-employee relationship ends, how much wage is still to be paid, whether is released under crediting on vacation or a vacation compensation is paid, as well as the height of the compensation. Usually, a settlement clause is agreed at the end of the termination agreement, according to which all mutual claims, whether known or unknown, are settled upon fulfillment of the agreement. In most cases, termination agreements are concluded before the actual termination of the employment relationship. This means that claims arising after the settlement clause are no longer covered by the termination agreement and thus the settlement clause. Thus, if the employment relationship does not end until 2022, but the termination agreement was already concluded in December 2021, the employee is entitled to the special bonus, provided that it is paid to all employees in 2021.
If the parties, especially the employer, do not want to pay certain payments, special payments, bonuses or Christmas bonuses to the employee leaving the company next year, this must be agreed separately in the termination agreement.
Care should also be taken when concluding a judicial termination agreement.
If you have any questions on this topic, please contact attorney Claudia Frank.

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