SNP scores stage victory for employees: Federal Labor Court rules on remuneration in cryptocurrency

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Stuttgart, April 17, 2025 – In its ruling of April 16, 2025 (Ref. 10 AZR 80/24), the Federal Labor Court (BAG) in Erfurt clarified key legal issues regarding the payment of commissions and remuneration in cryptocurrency. In the proceedings, SNP represented an employee who claimed agreed commissions for the period from June 2019 to March 2020. Although the remuneration was calculated in euros, it was to be converted into the cryptocurrency Ethereum (ETH) at the time of payment. Due to the significant increase in the value of ETH since the relevant period, it was particularly disputed whether such a contractual provision was legally permissible in an employment relationship.

In its oral reasoning, the BAG clarified that paying wages in crypto units is legally possible and can be considered a payment in kind under the Trade Regulation Act. But, this is only if it’s in the employee’s best interest. In the present case, the court affirmed this – among other things because of the company’s purpose and the plaintiff’s strong affinity for the subject matter. The BAG thus upheld the plaintiff’s argument and confirmed that the plaintiff is entitled to a commission, to be fulfilled by transferring the determined cryptocurrency to the plaintiff.

At the same time, the court pointed out a decisive limit: the minimum subsistence level, defined by the garnishment exemption limits, must be paid in euros. During the period in dispute, the plaintiff was working part-time as a student trainee and only earned a basic salary below this limit. It therefore had to be examined whether the commissions exceeded the exemption limit. The excess amount should have been paid in ETH – and must be paid in ETH.

Since the lower court ruling of the Baden-Württemberg Regional Labor Court was incorrect in determining the lower limit, the Federal Labor Court referred the case back for further clarification of the facts. However, the fundamental legal assessment of the Federal Labor Court remains decisive and is likely to be upheld in the new proceedings.

Employee representative
SNP Schlawien, Stuttgart: Oliver Truckenmüller (Labour law)

Press contact
Oliver Truckenmüller
Attorney
Certified specialist in labour law
Partner

Telephone: +49 711 244441-11
Email:   oliver.truckenmueller@snp.law

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