Fixed-term employment contract of a licensed player in the Bundesliga is regularly justified due to the nature of the work. BAG 16.01.2018 - 7 AZR 312/16

The legal dispute recently decided by the Federal Labor Court concerned a licensed player in the 1st Bundesliga who had been employed by the defendant club since July 1, 2009. The employment relationship was ultimately based on an employment contract that was limited until June 30, 2014 and provided for the option to extend the contract until June 30, 2015 if the plaintiff played in at least 23 Bundesliga matches in the 2013/2014 season. In addition, the plaintiff was to receive a points bonus and a success points bonus for league matches in which he played from the start or for at least 45 minutes. In the 2013/2014 season, the plaintiff was removed from the professional squad due to injuries and assigned to the second team. As a result of his injuries, he made fewer than 23 Bundesliga appearances. As a result, he was unable to unilaterally extend his contract by one year via a continuation option. In the opinion of the defendant club, the employment relationship ended at the end of 30.06.2014. The plaintiff contested this and wanted the labor court to determine that the time limit was invalid. In addition, he claimed payment of points and success point bonuses for the games in the second half of the 2013/2014 season in the amount of EUR 261,000.00.

The labor court ruled in favor of the plaintiff with regard to the time limit, but dismissed the claim for payment. The LAG dismissed the claim in its entirety.

The BAG confirmed the judgment of the LAG in full and dismissed the plaintiff's appeal. The fixed term of the employment contract was justified due to the nature of the work in accordance with Section 14 (1) sentence 2 no. 4 TzBfG. According to the BAG, in the commercialized and publicity-driven sport of top-level football, top sporting performance is expected and owed from a licensed player in interaction with the team, which he can only provide for a limited period of time. This special feature generally justifies a legitimate interest on the part of the employer in limiting the employment relationship. The requirements for the extension option and the bonus entitlement are therefore not fulfilled.

Conclusion: With its landmark ruling, the BAG has legally confirmed the fixed-term employment relationships that are common in professional soccer, thereby safeguarding the transfer system of German professional soccer. The BAG's decision could also have an impact on employers outside of professional sport, as the BAG's decision has given life to the "specific nature of the work" reason for fixed-term contracts, which means that the application of this reason for fixed-term contracts is more likely to be considered in other areas.