S as in Settlement

What can I achieve with a court settlement?

A settlement ends the legal dispute and usually has greater recognition because the settlement was reached with the participation of a labor court judge.

In employment law, the judge is required at all times to work towards an amicable end to the legal dispute. This is due to the fact that the continuation of the employment relationship is always paramount and the employment relationship should not be burdened by a court decision. It is therefore rather the exception to see judgements in german labor courts.

Many actions for protection against dismissal end by concluding an agreement because this allows the legal dispute to end more quickly and without further complications. Frequently, the payment of severance pay is agreed upon in termination settlements. In contrast to termination agreements, settlements do not lead to a blocking period for benefits from the Federal Employment Agency.


Please note: This is a very general overview on the subject of settlements under german labor law. If you need help in your particular case, please do not hestitate to contact me or book your appointment. I’m happy to help.

Employer and employee shake hands in court, concluding their settlement