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Contractual Limitation Period (Ausschlussfrist)

An Ausschlussfrist (also Verfallklausel, a contractual limitation or forfeiture clause) requires claims from the employment relationship to be asserted within a set period, or they lapse. The Federal Labour Court (Bundesarbeitsgericht) sets strict requirements: each stage must be at least three months, the clause may require no stricter form than text form (Textform), and it must expressly exclude the statutory minimum wage (Mindestlohn). If that carve-out is missing in contracts from 2015 on, the whole clause is void.

At a glance

  • Clauses are typically one- or two-stage (written assertion, then court action); each stage must be at least three months (§ 307 BGB)
  • It may require no more than text form, not written form (§ 309 no. 13 BGB, contracts from 1 October 2016)
  • It must expressly exclude the statutory minimum wage; if missing in contracts from 2015 on, the whole clause is void (BAG, 9 AZR 162/18)
  • One of the most common clauses in employment contracts; because the case law keeps evolving, templates should be reviewed regularly

FAQ

Why are so many Ausschlussfristen void?

Usually because they fail to exclude the minimum wage, require written form, or set a stage shorter than three months. In newer contracts each of these flaws makes the clause void, often entirely.

What applies if the clause is void?

The statutory limitation periods apply instead, usually three years, so the employee has considerably longer to assert claims.

Which claims does a valid clause not cover?

The minimum-wage portion, and claims based on intent and on liability for life, body, and health (§§ 202, 309 no. 7 BGB).

Last updated: August 2026

This article provides general information and is not a substitute for legal advice in individual cases.