(In-)Validity of contractual garden leave clauses in employment contracts
The Bundesarbeitsgericht has significantly tightened the limits on contractual garden leave clauses in a decision of considerable practical relevance. A standard-form contractual clause allowing the employer to unilaterally place an employee on garden leave, with continued remuneration, from the time notice of termination is given until the expiry of the notice period, places the employee at an unreasonable disadvantage and is therefore invalid.
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