The inflation bonus partial retirement is a frequent point of contention – especially for employees already in the release phase. The Higher Labor Court (LAG) Cologne ruled on July 21, 2026 (7 SLa 678/25) that a tariff-based claim to the inflation compensation bonus in the passive phase of partial retirement generally does not exist if the collective agreement requires an “active employment relationship.”
The Ruling at a Glance: LAG Cologne, 7 SLa 678/25
The LAG Cologne dismissed the appeal of an engineer in aircraft maintenance who was in the passive phase of his partial retirement and demanded the tariff-based inflation compensation bonus for ground staff. The tariff parties had concluded the “Collective Agreement on Payment of an Inflation Compensation Bonus Ground” (TV IAP Boden) in April 2024. Under its terms, only employees who were in an un-terminated and active employment relationship on the cut-off date of April 1, 2024, and met the six-month waiting period were eligible.
The plaintiff had been employed at the aviation company since 1983 and agreed to partial retirement in 2020. From April 2023, he was fully released from work duties (passive phase). The court found that the passive phase did not constitute an “active” employment relationship within the meaning of the collective agreement and denied the claim.
The Case: Engineer in Passive Phase of Partial Retirement Sues for Inflation Compensation Bonus
The plaintiff, an engineer in aircraft maintenance, had concluded a partial retirement agreement with his employer running from April 2020 to March 2026. From April 2023, he was in the release phase – he no longer performed any work but continued to receive his agreed remuneration plus top-up payments. When the tariff parties agreed on the inflation compensation bonus for the ground sector in April 2024, he demanded payment for himself as well. However, the collective agreement required an “active employment relationship” – and that, in the court’s view, was precisely what was missing.
Who Is Eligible Under the TV IAP Boden Collective Agreement? – Active Employment Relationship and Waiting Period
Section 3 TV IAP Boden defines the eligible group. Accordingly, employees are entitled who, on the cut-off date of April 1, 2024, were in an un-terminated and active employment relationship and had already belonged to the company for six uninterrupted months. There is also a provision for employees who meet the waiting period by October 1, 2024. Temporary agency workers and trainees may also be included under certain conditions.
Employees in the passive phase of partial retirement remain contractually bound and receive their agreed remuneration but no longer perform work. The LAG Cologne clarified that they therefore do not count as “actively” employed. This interpretation is not surprising. Many collective agreements link special payments to actual work performance. Those who are released fall outside the circle of beneficiaries – provided the wording regulates this unambiguously.
Why the Exclusion of the Passive Phase Is Permissible According to the Court
The plaintiff objected to unequal treatment compared to active colleagues and invoked Article 3 GG, Section 4 TzBfG, and Section 7 AGG. The LAG Cologne did not follow this argument. The tariff parties enjoy a wide margin of discretion in shaping collective agreements, protected by tariff autonomy (Article 9(3) GG).
Moreover, the inflation compensation bonus pursues two legitimate purposes in the court’s view: offsetting increased living costs and creating an incentive for future company loyalty. Employees in the passive phase will leave the company in the foreseeable future; an incentive for future loyalty is no longer necessary for them. Age discrimination is also not present, as partial retirement is not necessarily linked to a specific age.
Inflation Bonus Partial Retirement: What This Means for Released Employees
For employees already in the release phase, the inflation bonus partial retirement situation is clear after this ruling: A tariff-based claim exists only if the collective agreement explicitly includes released employees. Check the exact wording of your collective agreement. Sometimes it speaks only of the “employment relationship” without the qualifier “active” – in that case, the bonus might also be due in the passive phase.
If you are still in the active phase or have only just planned partial retirement, you can try to reach an individual agreement with your employer. Some companies pay the bonus voluntarily to avoid dissatisfaction. An open conversation is often worthwhile. Partial retirement also plays a role in operational changes – as our article on Schaeffler job cuts and partial retirement shows.
If you are unsure whether you have a claim, have the specific wording of your collective agreement reviewed by a specialist attorney for labor law. RechtStark, as a litigation funder, can cover the costs of potential proceedings – but legal advice remains with the attorney.
Non-Admission Appeal: Will It Go to the Federal Labor Court?
The LAG Cologne did not admit the revision. The plaintiff has, however, filed a non-admission appeal with the Federal Labor Court (9 AZN 547/26). The BAG must now decide whether the case has fundamental significance. Whether a supreme court clarification will occur remains open. For affected employees, this means: The final word has not yet been spoken. Anyone considering proceedings should await developments and seek legal advice.
Also relevant in this context is another LAG Cologne ruling on the tariff-based age limit – there, too, the validity of tariff-based exclusions was at issue.
Conclusion: Inflation Compensation Bonus in the Release Phase – What Employees Should Know
The inflation compensation bonus is not automatically due but depends decisively on the wording of the collective agreement. Those in the passive phase generally have no claim if the collective agreement requires an active employment relationship. Employees should therefore review their collective agreement and seek legal advice if in doubt.
Tariff autonomy protects such regulations as long as objective reasons exist – here, the incentive for future company loyalty. Even though the non-admission appeal is still pending, you should maintain realistic expectations. Anyone wanting to receive an inflation bonus partial retirement should seek an early conversation with the employer or pursue an individual agreement.
If you are affected, a structured approach helps: Read your collective agreement, clarify whether your employer is willing to pay voluntarily, and consult a specialist attorney for labor law if necessary. Should you consider legal action, RechtStark can assess whether litigation funding is possible.
Note: This article is for general information purposes only and does not replace individual legal advice. For a free initial assessment of whether litigation funding may be an option for your case, you can contact RechtStark.