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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.

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.