Employment termination and damages: Reversal of appellate denial of plaintiff’s claim on substantive labor law grounds

The Federal Labour Court (BAG) reversed the Saxon Labour Court of Appeal and dismissed the defendant's appeal, thereby upholding the Lower Labour Court's judgment in favor of the plaintiff and ordering the defendant to bear the costs of the second and third instances. The dispute concerned a claim for damages or specific performance arising from an employment contract, where the plaintiff challenged the legality and effectiveness of the termination or a related contractual provision. The decisive legal basis involved the interpretation of statutory labor protection laws and contract terms, specifically determining that the lower court correctly applied the substantive rights governing the termination or contractual obligation, finding that the defendant's defenses lacked the requisite legal merit under German labor law.