Exclusion Clauses in Standard Employment Contracts Soon Ineffective?
The German law on general terms and conditions will change with effect from 1 October 2016. This new law has impact also on exclusion of claims provisions in employment agreements. Such clauses commonly require the parties to raise claims in writing within a certain period of time after they become due (in most cases within three months); otherwise they are forfeited. In employment contracts that will be concluded on or after 1 October 2016, exclusion of claims clauses will only be enforceable if the employee can raise claims in simple text form (i.e., no ink signature required). Requirements for written form in exclusion of claims provisions will no longer be enforceable. Employment agreements concluded on or before 30 September 2016 remain unaffected as long as they are not amended. In case of an amendment on or after 1 October 2016, traditional exclusion of claims provisions, if any, should be updated to the new standard.