A contract, a promise - and a big price increase
What reads like a story from a tech startup thriller is a real legal case: Viktoria Z. (25) from Karlsruhe is suing her ex-employer for outstanding commission - not in euros, but in Ether (ETH), the Ethereum cryptocurrency. The trick: at the time of her work in 2020, the promised 19 ETH were worth around 3,779 euros. Today? Over 53,000 euros. And that's exactly what makes it so explosive.
From 2019 to 2021, Viktoria worked at Paranoid Internet GmbH, an online marketing company specializing in blockchain technologies. Her contract stipulated that she was to receive part of her commission in cryptocurrency. But that is exactly what did not happen - at least not in full. Instead of the promised 19 ETH, she has so far only received a partial payment in euros. That's not enough for Viktoria - and so the case ended up before Germany's highest labor court.
Employers on the defensive - "No crypto bank"
The other side, represented by Paranoid Internet GmbH, argues: They have now paid over 15,000 euros, so the issue is settled. Moreover, it is unreasonable to pay out cryptocurrencies in this amount years later - after all, they are "not a crypto bank".
The Federal Labor Court takes a different view: anyone who accepts payments in cryptocurrency must also bear the exchange rate risk. Period. Presiding judge Waldemar Reinfelder made it clear: "If the employer had procured ETH at the time, there would be no problem at all." And that is precisely the crux of the matter: a contract is a contract - even when it comes to digital currencies.
Crypto counts - but not without limits
Even though there has not yet been a final ruling (a calculation error in the previous proceedings forced the BAG to refer the case back), the court has sent a clear signal: cryptocurrencies are generally permissible as remuneration in kind in an employment relationship. However, like any other remuneration, they are subject to certain limits, such as protection against seizure (currently EUR 1,491.75).
This means that employers can generally pay employees in ETH, Bitcoin or similar - but they have to do it properly. And if they promise it, they have to deliver it.
Employer must also deliver legally
This case is more than just a curious foray into the world of cryptocurrencies. It is a litmus test for digital labor law. If you want to be innovative and throw crypto around, you also have to deliver legally - and shouldn't be surprised if playing with the blockchain becomes expensive years later.
Anyone who brags about "crypto extras" in a job interview must also be prepared to transfer the coins later - and not close the wallet again when they are suddenly worth ten times as much. Otherwise, the whole thing looks like a bonus promise with an expiration date. And that's not progress - it's deception.
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