Termination Protection in Germany — Rights and Obligations

What is termination protection?

Termination protection protects employees from arbitrary dismissal by their employer. The most important law for this is the Kündigungsschutzgesetz (KSchG). It ensures that a dismissal is only permitted on specific grounds.

When does the Kündigungsschutzgesetz apply?

The KSchG applies when both conditions are met:

1. The business has more than 10 employees (full-time positions; part-time counted proportionally)
2. You have been employed for more than 6 months (probationary period over)

Important: In small businesses (10 or fewer employees), the KSchG does not apply — the employer can dismiss more easily (but not discriminatorily!).

Which termination grounds are permissible?

The KSchG allows three types of termination grounds:

1. Termination on operational grounds

The employer must reduce positions due to:

• Decline in orders — less work available
• Restructuring — department is closed or merged
• Location closure
• Outsourcing — tasks are transferred to external companies

Social selection: The employer must determine which employees have the least need for protection:

2. Termination on personal grounds

The employee can no longer perform their work duties, e.g.:

• Long-term illness — if improvement is not expected in the foreseeable future
• Frequent short-term absences — if absences are permanently too high (more than 6 weeks/year over 3+ years)
• Loss of work permit — for foreigners, if residence status is not renewed
• Loss of driver's license — if the position requires a license

Note: Dismissal due to illness is very difficult for the employer. They must conduct occupational reintegration management (BEM) before dismissal is allowed.

3. Termination for cause

The employee violates their contractual obligations, e.g.:

• Unexcused absence
• Refusal to work
• Theft (even minor!)
• Insult of supervisors or colleagues
• Alcohol/drugs in the workplace
• Sexual harassment
• Data misuse

Warning: Generally, the employer must warn the employee before dismissal for cause — i.e., formally reproach the misconduct in writing and point out the consequences. Only upon repetition may dismissal occur.

Exception: For serious violations (e.g., theft, violence), summary dismissal without prior warning is possible.

Special termination protection

Certain groups of employees enjoy special protection:

Warning — the yellow card

What is a warning?

A warning is a formal reprimand from the employer. It must contain:

1. Specific misconduct — what, when, where (not: "You're always late")
2. Demand for improvement — what the employee should change
3. Threat of consequences — "In case of repetition, dismissal will follow"

Your rights

• You can write a response statement (placed in personnel file)
• You can contest the warning (if unjustified)
• After 2–3 years without further incidents, the warning should be removed from your file

Notice period

Statutory notice periods (§ 622 BGB)

Collective agreement or employment contract may provide for longer periods — but never shorter (except during probation).

Summary dismissal (§ 626 BGB)

In serious cases, the employment relationship can be terminated immediately (without notice):

• Important reason required (e.g., theft, violence, serious insult)
• Must be made within 2 weeks of learning of the reason
• Applies to both parties — the employee can also terminate immediately (e.g., for mobbing, unpaid wages)

What to do if dismissed

Act immediately!

1. Review the dismissal — Is it in writing? Is the notice period correct? Was the works council consulted?
2. Remember the 3-week deadline — File suit at the labor court within 3 weeks of receipt!
3. Notify the employment agency — Within 3 days of receiving dismissal, register as a job seeker!
4. Contact a lawyer — labor law attorney, union, or immigration counselor
5. Request a work certificate — Your right to a qualified reference

Lawsuit at labor court

• Costs: Each party pays their own lawyer (no cost recovery, even if you win)
• Legal aid: If you have low income, the state covers costs
• Settlement hearing: About 60% of cases settle (often with severance)
• Duration: First instance approx. 3–6 months

Works council — your shield

The works council must be consulted before every dismissal (§ 102 BetrVG). A dismissal without works council consultation is void!

The works council can:

• Consent — dismissal is executed
• Express concerns — dismissal can be executed despite concerns
• Object — employee has a right to continued employment until the labor court decides

Tips for foreigners

1. 3-week deadline — the most important deadline! File suit, otherwise the dismissal is valid
2. Check your residence status — dismissal may affect your status
3. Join a union — free legal protection in employment law
4. Keep documents — employment contract, warnings, emails, meeting notes
5. Don't sign hastily — never immediately sign a severance agreement or dismissal

Editorial hamboorg.city · As of: April 2026 · Carefully prepared, regularly updated. Content is informational and does not replace legal advice.