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Lapse clauses / limitation periods explained simply

Definition

Limitation periods require claims arising from the employment relationship to be made in writing within a specified timeframe – otherwise they are lost for good. Two-stage clauses are common: first, the claim must be notified to the employer in writing; if rejected, it must then be brought before the courts within a further timeframe. The minimum period is three months. Limitation periods do not apply to claims for the statutory minimum wage or to claims arising from intentional breaches of duty. Unclear or excessively short clauses are invalid.

Dr Nils Bronhofer

Specialist solicitor in employment law
Over 15 years’ experience in employment law

Reading time:  minutes • Last updated: January 2026

Classification under employment law

Limitation periods (also known as expiry clauses) require claims arising from the employment relationship to be asserted in writing within a specified period – otherwise they lapse. Single-stage periods relate to the assertion of claims; two-stage periods additionally cover their enforcement in court. The minimum period is 3 months (Section 309(13) of the German Civil Code (BGB); Federal Labour Court (BAG) case law).


Distinction from related terms

Limitation period: Expiry clauses result in claims becoming definitively extinguished after a short period of time. The statutory limitation period takes effect much later and must generally be actively invoked. 

Due date: Limitation periods often commence upon the due date of a claim. The due date therefore determines the starting point of the period, but is not to be equated with it.

Practical tip

Limitation periods do not apply to claims for the statutory minimum wage (Section 3 of the Minimum Wage Act) or to claims arising from a deliberate breach of duty or liability under Section 826 of the Civil Code. Many employees lose legitimate claims because they are unaware of limitation periods. Check your contract – and, if in doubt, act quickly and in writing. 

Unless they are raised within the agreed time limits. These time limits are often short.

Yes, otherwise they will be lost regardless of whether they are authorised or not.

No. Unclear or unreasonable terms may be invalid.

Limitation periods cause claims to lapse more quickly. The statutory limitation period does not come into effect until much later.

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