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Cut-off periods in the employment contract: when claims expire quickly

Many employment contracts contain cut-off or forfeiture clauses: claims must be asserted in writing within a few months, otherwise they expire, faster than the normal statute of limitations. Such clauses, however, are only valid under certain conditions.

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Your chances of getting your money back

Valid cut-off periods often let claims expire after just three months. Therefore always assert open claims (wages, overtime, holiday compensation) quickly and in writing.
A cut-off period of less than three months per stage is invalid, as are clauses that cover the statutory minimum wage or liability for intent or that do not exclude the minimum wage.

What you should do now

  1. 1

    1. Find the clause in the contract

    Look for 'Ausschlussfrist', 'Verfallklausel' or 'Geltendmachung'. Note the deadline (often 3 months) and whether there are two stages.

  2. 2

    2. Quantify claims immediately

    List open claims specifically (period, amount) and assert them in writing, which preserves the first stage.

  3. 3

    3. Watch the second stage

    If the employer refuses, a second deadline for asserting the claim in court often begins. Do not let that one lapse either.

  4. 4

    4. Check validity

    If the clause is too short, non-transparent or covers the minimum wage, it may be invalid, in which case the normal statute of limitations of three years applies.

How to spot the scam

  • The clause requires assertion in less than three months.
  • It does not expressly exclude the minimum wage.
  • You wait to assert claims until the employment relationship has ended.

Frequently asked questions

What is a cut-off period?

A contractual clause under which claims from the employment relationship must be asserted within a short period (often three months), otherwise they expire. It effectively shortens the statute of limitations.

Are such clauses always valid?

No. A period under three months per stage is invalid, as are clauses that include the statutory minimum wage or liability for intent or that are unclearly worded. Then the statutory limitation period applies.

How do I save my claims?

Assert open claims early, specifically and in writing, ideally while the employment relationship is still ongoing. Note any second stage (assertion in court).

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.