Last Update on 09.08.2026 state: 9.8.2026, reading time approx. 2 min

BAG: US contract can’t waive German severance rights

The Federal Labor Court ruled that a US employment contract cannot override German wage claims during wrongful termination disputes. Employees based in Germany may still claim unpaid wages for the notice period, even if their contract specifies foreign law. Case 2 AZR 96/24, decided July 30, 2026.

Rechtsanwalt Thomas Meier-Bading

Court blocks foreign-law loophole

Airplane cabin crew in uniform — Image: AI, Prompt: Thomas Meier-Bading

The Federal Labor Court ruled that a US airline cannot use its contract to avoid paying German wages during a wrongful termination dispute. A flight attendant based in Frankfurt will now get her unpaid wages for October 2020 through April 2021, despite the contract stating US law applies. The decision came on July 30, 2026 (case 2 AZR 96/24).

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Why the court stepped in

German law protects employees from losing all pay if a termination is later ruled invalid. The airline argued its US contract let it skip this rule, but the court said that would let employers bypass German termination protections entirely. A foreign contract can’t erase core German labor rights.

What happened in this case

A French flight attendant worked for a US airline out of Frankfurt. The airline fired her in September 2020, but a court later ruled the termination only took effect in April 2021. The airline refused to pay her wages for those seven months, citing its US contract. She sued for the money.

This summary is based on publicly available information as of the date of publication.

Key points of this ruling

You can find more information on the topic of pay on the Pay Main Page. Deadlines usually apply here.

You can find more information on the topic of termination on the Termination Main Page. Be sure to note the 3-week notice period.

IMPORTANT Unlike in the UK or the US, under German law, a court ruling does not mean that any judge is automatically bound by the decision. Judges are bound by the law, not by case law, not even by their own. Nevertheless, lower courts generally take the decisions of higher courts into account.

Overview: All About Employment Law

This article addresses only a single issue. On the employment law overview page, you will find a systematic breakdown of topics such as severance pay, termination, wages, and employment references.