German labor courts rule on dismissal and wage claims

German labor courts have issued rulings clarifying employee rights regarding wages and leave during dismissal protection proceedings.

The Higher Labor Court (LAG) Hamm ruled that an employee can lose their claim to wages during a period of employer default if they unreasonably refuse a reasonable offer of continued employment during a dismissal protection lawsuit. In this case, an employee who had been dismissed following an altercation involving a thrown hammer won the legal battle to overturn the dismissal. However, because the employee ignored the employer's specific offer to continue working in their previous capacity until the legal proceedings concluded, the court denied the claim for back pay.

Separately, the Higher Labor Court of Lower Saxony ruled on the irrevocability of garden leave. The court determined that if an employer issues an irrevocable release from work that includes the offsetting of remaining vacation days, this cannot be unilaterally revoked even if a dismissal protection lawsuit results in the continuation of the employment relationship. In the case reviewed, the employee was entitled to salary only until the original notice period expired, as the leave was considered effectively granted.