Employment law · October 2026

Discrimination in recruitment: damages without a cap – but not without an end

Anyone who suffers discrimination in a job application can claim compensation for material damage in addition to an indemnity. The Federal Labour Court has clarified how far this liability extends.

The case

An applicant had been rejected in 2009 because of his age. For the years 2020 to 2023 he claimed around EUR 236,000 in damages – the earnings he would have achieved had he been hired. However, he had already taken up a suitable public-sector position years earlier and held it for several years.

The decision

The Federal Labour Court dismissed the claim (judgment of 10 September 2026 – 8 AZR 153/25). Compensation for material damage under § 15(1) AGG is not capped in advance. However, the link between the discrimination and a loss of earnings can end – for example when the applicant has found a new, suitable job and that employment has become stable. The further career path is then part of the general risk of life.

What this means in practice

  • For employers: Non-discriminatory job advertisements and clear documentation of the selection decision remain important. The liability risk is not capped, even if it is limited in time.
  • For applicants: Claims must be asserted in writing within two months of receiving the rejection (§ 15(4) AGG). In addition to an indemnity, lost earnings can also be claimed – but not without limit.

This article provides a general overview and is no substitute for advice in individual cases. As of: October 2026.

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