In its judgment of 12 February 2025, case 5 AZR 127/24, the Federal Labour Court considered alternative earnings during employer-imposed release from work. An employee is not generally required merely because of that release to start another job before the notice period ends.
Legal context and practical consequences
The decision concerns the circumstances in which earnings deliberately not obtained can be credited against pay. It does not remove every duty to seek work in all situations or periods. The employer had chosen not to provide work during the continuing notice period. Actual earnings, allegedly forgone earnings and the position after notice expires must be examined separately. Holiday treatment also requires its own effective arrangement.
Preparing the review
A departure arrangement should address salary, variable remuneration, holiday, release from duties, references and return of property. Tax and social security consequences require their own review. Gather all contract amendments, recent payslips, relevant correspondence and evidence of receipt. Other contractual exclusion periods may run independently of dismissal proceedings.
Four practical examples
Example 1
An employer releases an employee during notice. Review salary obligations and any lawful income offset.
Example 2
A release letter mentions holiday only generally. Check whether it can actually fulfil holiday entitlement.
Example 3
An employee starts work elsewhere. Assess contractual duties and the treatment of earnings.
Example 4
A revocable release is ended suddenly. Review return obligations and the terms originally agreed.
Source and further information
Official source · Related employment-law topic
Archive allocation: February 2026. Written and reviewed retrospectively on 13 November 2026. Court decisions retain their actual decision dates.