UNFULFILLED EXPECTATION OF CONSIDERATION

Individual who, because of their personal relationship to another (e.g. relatives, affianced), perform work without any remuneration being agreed for it may nevertheless be entitled to remuneration or deferred payment of remuneration. Although there are no statutory provisions on the matter, by the process of judicial further development of the law the Federal Labour Court has established such an entitlement, subject to the following conditions. Firstly, either no remuneration must have been paid for the work performed or only modest remuneration that is in obvious disproportion to the performance provided. Secondly, there must be or have been an expectation that the work performance provided would be recompensed in the future by the handover of property or assets. Lastly, there must be a factual connection between these conditions. If the expected handover of assets then fails to materialize, the entitlement to remuneration or entitlement to deferred payment corresponds to the usual level of pay for the type of work concerned.