The German Federal Labour Court (BAG) has decided that employees retain their rights to all options already exercised after resigning, in a ruling handed down on 19 March. Applicable retroactively to employment contracts that have already expired, the ruling represents a clear reversal of case law, with significant consequences for companies.
In a ruling dated 19 March 2025, Germany’s Federal Labour Court (BAG) ruled that clauses in employee participation programmes stipulating that virtual stock options that have become exercisable are immediately cancelled in the event of the employee’s resignation are invalid.
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Article authors
Thomas Schnee
Correspondent in Germany
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.