Principle Decision of the Federal Labor Court
The Federal Labor Court (BAG) decided on April 16, 2025, that commission payments in cryptocurrencies, such as Ether (ETH), are permissible. These can be agreed upon in the employment contract as non-cash benefits, provided they are in the objective interest of the employee. This ruling establishes a precedent for modern compensation models.
Cryptocurrencies as Non-Cash Benefits
According to § 107 Abs. 2 Satz 1 of the Trade Regulation Act (GewO), the transfer of cryptocurrencies constitutes a non-cash benefit. This means that payments do not have to be made solely in traditional money but can also be conducted through digital currencies.
Protection of Employee Interests
A prerequisite for crypto compensations is that the agreement corresponds to the objective interest of the employee. The BAG emphasizes the protection of employees in such innovative compensation forms.
Exemption Limit and Minimum Payment in Cash
According to § 107 Abs. 2 Satz 5 GewO, the value of non-cash benefits must not exceed the garnishable part of the salary. Therefore, an exempt portion must still be paid in cash to ensure the basic security of the employee.
Impact on Employees and Companies
This decision enables more flexible remuneration and creates legal clarity. Employees can benefit from innovative compensation models that include potential value increases through cryptocurrencies. At the same time, the ruling provides legal certainty in contract design.
Overall, this ruling integrates modern digital assets into German labor law without neglecting the protection of employees.