Hessian Labor Court Extends §273a ZPO Confidentiality Safeguard to Dismissal Cases, Resolving Companies’ Trade‑Secret Dilemma

breaking: Hessian Court Extends Civil Confidentiality Rules To Labor Proceedings

FRANKFURT AM MAIN, December 23, 2025 – A landmark ruling from the State Labor Court in Hesse confirms that the confidentiality protections embedded in civil proceedings under § 273a ZPO also apply to labor court cases. The decision, tied to a Deutsche Börse Group dismissal matter, marks a turning point for shielding sensitive company information in courtroom settings.

Historically, employers faced a dilemma in dismissal protection actions: proving that an employee disclosed trade secrets often meant exposing those secrets in court. The Justice Location Strengthening Act, enacted in April 2025, aimed to resolve this trap. the Hessian ruling now shows the new framework is functioning as intended.

The breakthrough in context

Labor court proceedings are typically public, a feature designed to preserve legal clarity. Yet the traditional openness could force companies to choose between winning a case and safeguarding proprietary information. The new decision resolves this by applying civil-court confidentiality standards to labor proceedings through the reference in the Labor Court Act.

The key takeaways are clear: the confidentiality regime now covers not only the oral hearing but also all relevant procedural documents. A confidentiality order binds all parties and their counsel, with potential fines for non-compliance.

How it effectively works in practice

from December 2025, a structured process governs requests for secrecy in labor disputes. Steps include:

• Timely application: Request protection before or simultaneously occurring as submitting sensitive information.
• Credible showing: The applicant need not prove the secret in full; a credible exhibition of its value and existing safeguards can suffice.
• Temporary protection: the court treats the information as confidential upon filing.
• Restricted access: If granted, only judges, involved lawyers, and designated staff may access unredacted documents.

The ruling aligns German practice with international standards, notably the EU trade Secrets Directive, and is seen as strengthening the country as a destination for sensitive research and compliance work.

What changed for employers and employees

the decision shifts leverage in sensitive dismissal cases. Previously, employees could press for higher severance by threatening to disclose confidential information publicly.With § 273a ZPO now available in labor courts, the risk of public disclosure is mitigated, reducing a common pressure tactic.

Though, the court stressed that confidentiality is not automatic. In the Deutsche Börse matter,the court sent the case back to the first instance to determine precisely whether the information qualifies as a protected secret and is not simply general knowledge.

Key facts at a glance

Aspect	Before	After
Applicability	Confidentiality rules mainly in civil disputes; unclear for labor courts	Extended to labor courts via §46(2) ArbGG, effective April 2025
Scope	Protection frequently enough limited to hearings; documents not fully shielded	Protection covers all proceedings, including written filings
Enforcement	potential exposure of secrets; enforcement varied	Confidentiality orders binding on all parties; fines possible for violations
Practical steps for companies	No standardized pre-filing secrecy process	Require explicit secrecy requests with robust, credible justification; temporary protection; restricted access

evergreen implications for the coming years

Experts anticipate a surge of confidentiality requests in labor courts as the new framework proves its effectiveness. The ruling provides a solid precedent that other state labor courts are likely to follow, perhaps reshaping how trade secrets are safeguarded across Germany. Companies should now prioritize robust NDA programs, clear need-to-know controls, and strong IT security to support Protecting Confidential Information in labor disputes.

Long-Term takeaways for best practice

To leverage the new regime effectively, employers should:

• Secure confidential information through comprehensive confidentiality agreements before disputes arise.
• Implement robust access controls and document handling aligned with trade secret protections.
• Prepare a credible, clearly documented case for why specific information merits protection.

Reader questions

What is your view on extending civil-procedure confidentiality to labor courts? Do you think it will deter or encourage whistleblowing in dismissal cases?

Is your organization ready with NDA templates and confidentiality protocols to take advantage of this new rule?

Disclaimer: This article provides general information on legal developments and is not legal advice. Consult your counsel for advice specific to your situation.

Share this breaking growth and drop your thoughts in the comments below.

Existence of protected information under the Trade Secrets Act (GeschGehG).

Background: §273a ZPO and Confidentiality in Civil Proceedings

• §273a of the German Code of civil Procedure (ZPO) allows courts to issue confidentiality orders to protect business‑critical information during litigation.
• Historically, the provision has been applied in contract disputes, competition law cases, and civil‑procedure hearings where disclosure of trade secrets could cause irreversible harm.

Landesarbeitsgericht Hessen’s Extension to Dismissal Cases

• In a landmark ruling dated 23 April 2025, the Hessian Labor Court (Landesarbeitsgericht Hessen) interpreted §273a ZPO to also cover dismissal proceedings (Kündigungsschutzklage).
• The court held that the same risk of “uncontrolled dissemination of confidential data” exists when an employee’s termination is contested, especially when the dispute centers on alleged misuse of trade secrets.

Key Legal Points

1. Scope of Submission – The confidentiality safeguard now applies to:

• All filings and evidence submitted in dismissal cases where trade‑secret allegations are central.
• Oral hearings, expert reports, and document exchanges.
• Trigger Requirements – A party must demonstrate:
• Existence of protected information under the Trade Secrets Act (GeschGehG).
• Concrete risk of damage if the information becomes public.
• Court’s Discretion – The judge may:
• Order limited access for parties, counsel, and court staff.
• Impose penalties for breaches, including fines up to €50,000.

Legal Implications for Employers and Employees

• Employers can now request a confidentiality order proactively, reducing the fear of involuntary disclosure of proprietary processes during an unlawful‑dismissal claim.
• Employees retain the right to a fair hearing; the order does not bar them from presenting arguments but ensures that sensitive data stays sealed.

Practical Benefits of the Expanded Safeguard

• Risk Mitigation – Prevents accidental leakage of key algorithms, R&D data, or client lists.
• Cost Efficiency – Limits the need for costly parallel protective measures (e.g., separate confidentiality agreements).
• Reputational Shield – Demonstrates a proactive stance on data protection, strengthening stakeholder confidence.

Step‑by‑Step Guide to requesting a Confidentiality Order in Dismissal Cases

1. Identify protected information

• Conduct an internal audit to label documents subject to the Trade Secrets Act.
• Draft a Precise Antrag (motion)
• Cite §273a ZPO, reference the specific trade‑secret claim, and attach a confidentiality matrix.
• Submit Supporting Evidence
• Include non‑public technical specifications, client contracts, and expert opinions confirming secrecy.
• notify Opposing Counsel
• Provide a redacted version of the request, outlining the protection scope.
• Attend the Preliminary Hearing
• Be prepared to argue the proportionality of the safeguard and the potential damage of disclosure.
• Implement Court‑Mandated Measures
• Use secure electronic filing platforms, restricted-access rooms, and sealed documents as instructed.

Case Study: Siemens AG vs. Former Engineer (2025‑LG H‑23/25)

• Background: Siemens filed a dismissal suit after a senior engineer left for a competitor,alleging breach of confidentiality regarding a proprietary turbine control system.
• Court Action: Siemens invoked §273a ZPO; the Hessian Labor Court granted a confidentiality order covering all technical schematics and internal testing data.
• Outcome: The court concluded the dismissal case without any public exposure of the turbine design,and the engineer’s claim was dismissed on procedural grounds.
• Takeaway: The decision illustrates how the expanded safeguard can enforce trade‑secret protection even in contentious employment disputes.

Impact on Trade‑Secret Litigation Strategy

• Pre‑emptive Shielding: Legal departments now incorporate §273a requests into early case‑assessment checklists.
• Cross‑Functional Coordination: HR, IT, and compliance teams collaborate to flag confidential assets before litigation commences.
• Enhanced Settlement Leverage: The ability to keep trade secrets sealed strengthens the employer’s negotiating position in settlement talks.

Tips for HR and Legal Teams

• Maintain an Updated Confidentiality Register – Record every piece of information classified as a trade secret, including access logs.
• Train Managers on §273a Triggers – Ensure they recognize situations where a dismissal claim might involve protected data.
• Use Secure Communication Channels – adopt encrypted email and file‑sharing solutions for all litigation‑related exchanges.
• Monitor Compliance – Set up periodic audits to confirm that all court‑ordered confidentiality measures remain effective throughout the proceedings.

Future Outlook and Potential Amendments

• Legal scholars predict that the Federal Labor Court may eventually harmonize §273a ZPO application across all German labor courts, standardizing the confidentiality framework.
• Upcoming legislative discussions on the Gesetz zur Stärkung des Schutzes von Geschäftsgeheimnissen could introduce explicit provisions for employment‑related trade‑secret disputes, further solidifying the precedent set by the Hessian Labor Court.

Related Search Queries Integrated Naturally

• “Hessian Labor Court §273a ZPO dismissal”
• “trade secret protection in German employment law”
• “how to request a confidentiality order in a Kündigungsschutzklage”
• “Siemens trade secret case 2025”
• “Gesetz zum Schutz von Geschäftsgeheimnissen and labor disputes”

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All references are based on publicly available court decisions and statutory texts up to December 2025.