If legal proceedings arise between an employee and employer, there may be a strong temptation to present the facts in a more favorable light than they actually are. If an employee makes false claims in legal proceedings against their employer, this may justify extraordinary termination of the employment. Such a case of (attempted) trial fraud was the subject of the decision of the Lower Saxony Regional Labor Court (LAG) of August 13, 2025 (2 SLa 735/24).

• On August 13, 2025, the Lower Saxony Regional Labor Court ruled that an employee’s false claims in legal proceedings against the employer justified extraordinary termination without notice.
• The court found that the employee’s submission of an alleged employment contract with misleading information constituted a misrepresentation of facts, amounting to attempted trial fraud.
• The ruling emphasizes the importance of distinguishing between legal opinions and factual assertions in court.

The employee had been employed by a retailer of e-bikes since January 2016,and had been a branch manager since July 2021. The employer issued the employee an ordinary notice of termination. The employee filed an action for unfair dismissal and also sued for payment of bonus claims. To substantiate these bonus claims, the employee submitted an (alleged) employment contract dated January 15, 2016. The employee argued that, in his view, this employment contract entitled him to the bonus payment he was seeking; according to the employee the...

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