Severance pay claim in employment termination agreement: validity of consent and enforceability of waiver clauses under German labor law

The Federal Labour Court (BAG) rejected the employer’s revision, thereby upholding the Lower Saxony Regional Labour Court’s judgment and ordering the employer to bear the costs of the appeal proceedings. The dispute concerned a claim for severance pay in an employment termination agreement, challenging the validity of the agreement or the amount of compensation due following the end of the employment relationship. The court’s decision rests on the principles governing the validity of termination agreements (Aufhebungsverträge) under German labour law, specifically addressing the requirements for effective consent and the enforceability of waiver clauses, thereby affirming the plaintiff's entitlement to the claimed severance.