Involved parties: The case originated from an employee (regional manager in field sales since January 2022) who resigned and was placed on paid leave by his unnamed employer, who then withdrew the company car (provided for private use). Litigation progressed through Oldenburg Labor Court (ArbG, Ref. No. 5 Ca 370/24, dismissed claim), Lower Saxony Regional Labor Court (LAG, Ref. No. 5 SLa 249/25, awarded compensation), to BAG's Fifth Senate. No specific companies named; decision impacts employers using such clauses.[1][6]
Context and timeline: Employers commonly use paid leave post-termination to isolate ex-employees for data protection, customer relations, or workplace harmony, often tying it to revoking company car private use (a remuneration benefit).[1][6] Employee resigned; employer invoked clause, demanded car return. Employee sought €510/month loss-of-use compensation. Lower courts split; BAG ruled employee's interest in working until notice end outweighs employer's unless case-specific justification exists (no contract needed then).[1] Builds on remuneration rules where company cars count as in-kind pay, non-unilaterally revocable without clause.[4][6][8]
Newsworthy now: Fresh March 25, 2026, BAG decision (published ~April 8, 2026) voids widespread standard clauses, shifting to case-by-case assessments and risking disputes over paid leave, car use, and remuneration—prompting contract reviews amid Germany's strict employee protections.[1][6]