The German Federal Labor Court (Bundesarbeitsgericht (BAG)) recently ruled that a blanket release clause entitling the employer to exempt the employee from work “upon or following the issuance of a notice of termination—regardless of which party issued it”—while continuing to pay wages, constitutes an unreasonable disadvantage and is therefore invalid (Judgment of March 25, 2026, Ref. No. 5 AZR 108/25).
