Labour law: Despite Section 13 (1) sentence 3 BUrlG, a court-recorded termination clause can also include compensation for statutory holiday leave.

Cancellation and court settlement

On 26 November 2008, the defendant terminated the employment relationship with the plaintiff, who had been unable to work since January 2006, with effect from 30 June 2009. As part of the subsequent dismissal protection proceedings, the parties reached a settlement on 29 June 2010. It was agreed that the employment relationship would be terminated as a result of the dismissal on 30 June 2009 and that the defendant would pay the plaintiff a severance payment of EUR 11,500. Upon fulfilment of the settlement, all financial claims arising from the employment relationship were deemed to have been settled, regardless of whether they were known to the parties or on what legal grounds they arose.

Demand for holiday pay in lieu

Despite the settlement, the plaintiff demanded financial compensation from the defendant on 29 July 2010 for his outstanding holiday from the years 2006 to 2008, claiming an amount of EUR 10,656.72. The defendant refused this payment with reference to the settlement clause in the settlement, according to which all claims arising from the employment relationship had already been settled. The plaintiff then brought an action before the labour court.

Decisions of the lower courts

The labour court dismissed the plaintiff's claim in its entirety. The plaintiff then appealed to the Regional Labour Court, which ruled partly in his favour. It ordered the defendant to pay the plaintiff holiday pay in the amount of 6,543.60 euros. The court considered it proven that the settlement did not sufficiently cover the plaintiff's holiday entitlement.

Decision of the Federal Labour Court (BAG)

The defendant lodged an appeal with the Federal Labour Court (BAG). The BAG overturned the judgement of the regional labour court and restored the judgement of the labour court. The BAG argued that the settlement of 29 June 2010, in which all financial claims were declared settled, also included the plaintiff's claim to compensation for his statutory leave. Thus, no further claims of the plaintiff, including the holiday entitlement, were outstanding.

Conclusion: lawsuit dismissed

The comprehensive settlement clause in the court settlement settled all claims arising from the employment relationship, including holiday pay. The BAG therefore finally dismissed the plaintiff's claim.