# German Federal Labour Court rulings

> Live situation record from CLSTR: https://clstr.news/situations/german-federal-labour-court-rulings
> Updated: 2026-08-29T01:19:37.000Z. Sources: 2. Developments: 2.

The German Federal Labour Court (Bundesarbeitsgericht) has issued several rulings impacting employment contracts and labor rights.

In an earlier decision, the court invalidated blanket garden leave clauses, ruling that allowing employers to unilaterally release employees from duties while continuing compensation is invalid under § 307 Abs. 1 Satz 1 BGB. The court determined these clauses unfairly disadvantage employees by infringing upon their interest in maintaining active employment.

More recently, the court clarified the calculation of the ‘overload quota’ (Überlastquote) regarding partial retirement (Altersteilzeit) requests. The ruling strengthens the position of employers by specifying that companies must include all employees—including those not subject to specific collective agreements or union membership—when determining if a collectively bargained quota has been reached. This decision validates the use of such quotas for personnel and financial planning.

## Timeline

### 2026-08-29: Bundesarbeitsgericht clarifies partial retirement overload quotas

The German Federal Labour Court ruled that employers can calculate partial retirement overload quotas by including all employees, regardless of whether they are covered by collective bargaining agreements.

2 sources. https://clstr.news/cluster/bundesarbeitsgericht-clarifies-partial-retirement-overload-quotas

### 2026-08-14: German Federal Labour Court invalidates blanket garden leave clauses

Germany's Federal Labour Court has ruled that blanket garden leave clauses in employment contracts are invalid as they unfairly disadvantage employees.

3 sources. https://clstr.news/cluster/german-federal-labour-court-invalidates-blanket-garden-leave-clauses

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Cite as: German Federal Labour Court rulings. CLSTR, https://clstr.news/situations/german-federal-labour-court-rulings
