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  • Glossary
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Discretionary & Revocation Reservations (Freiwilligkeits-/Widerrufsvorbehalt)

Voluntary benefits such as bonuses, allowances, Christmas pay, or perks can become a lasting legal entitlement even without an express clause in the contract, for example through repeated unconditional grants (betriebliche Übung). With a Freiwilligkeitsvorbehalt (discretionary reservation) the employer tries to stop a claim arising; with a Widerrufsvorbehalt (revocation reservation) it reserves the right to withdraw a granted benefit on objective grounds. The Federal Labour Court (Bundesarbeitsgericht) reviews both strictly.

Jonas Stoffel
General Counsel

At a glance

  • Discretionary reservation (Freiwilligkeitsvorbehalt): aims to stop a claim arising; void on ongoing pay, permitted only for genuine special payments
  • Revocation reservation (Widerrufsvorbehalt): presupposes a claim and reserves withdrawal on objective grounds named at least in direction (§ 308 no. 4 BGB)
  • The revocable portion may be at most 25 to 30 percent of total remuneration
  • Combining discretion and revocation in one clause is contradictory and usually void

FAQ

Can benefits become an entitlement without a contract clause?

Yes. If benefits are granted repeatedly and unconditionally, an established company practice (betriebliche Übung) and thus a lasting entitlement can arise, even without a clause (see Betriebliche Übung).

What happens if the reservation is void?

The benefit becomes a binding entitlement: the employer can no longer withdraw it unilaterally and owes it on a lasting basis.

Why do reservations often fail?

Because they cover ongoing pay, are drafted unclearly, exceed the 25-to-30-percent limit, or mix discretion and revocation. A clause limited clearly to genuine extra benefits is safer.

Last updated: August 2026

This article provides general information and is not a substitute for legal advice in individual cases.

Written By

Jonas Stoffel

Jonas is the General Counsel at Leapsome advising the internal team on all legal matters including Employment. On this blog, he is frequently writing about German Employment law and how HR Teams can use Leapsome to support Compliance. ‍