Change Notice in Germany: When Employers Can Modify Your Contract

Change Notice in Germany

In Germany, employers can’t simply change the terms of your employment contract at will. If they want to reduce your salary, reassign you to a different city, or change your working hours permanently, they usually need your consent. But what happens if you refuse? In such cases, German labor law allows the employer to issue a change notice (Änderungskündigung). This is a special type of termination—combined with an offer to continue the employment under new terms. It’s both a dismissal and a reemployment offer in one. This article explains how a change notice in Germany works, when it is allowed, and how employees—especially expats—can respond.

1. What Is a Change Notice?

A change notice is a legal instrument that allows an employer to:

  • Terminate your current employment contract, and
  • Offer continued employment under modified conditions

It is regulated by Section 2 of the Protection Against Dismissal Act (KSchG).

Key characteristics:

  • It’s a dismissal with reemployment offer
  • The offer must be made simultaneously with the termination
  • The employee can choose to accept or reject the new terms
  • A change notice is only valid with social justification

📌 A change notice is not the same as a simple request to amend your contract—it is a formal termination.


2. When Can Employers Issue a Change Notice?

Employers may use a change notice when they cannot change contract terms unilaterally and when:

  • Business needs have changed
  • The company is restructuring
  • They aim to cut costs or relocate jobs
  • Negotiations with the employee have failed

Common reasons include:

  • Reducing working hours or salary
  • Relocating the place of work
  • Reassigning job duties
  • Changing shift models

📌 The change must be reasonable and proportionate—and the employer must prove there is no alternative.


To be legally effective, a change notice must:

✅ Be in writing
✅ Include a clear reason for the change
✅ Provide a detailed and specific offer for continued employment
✅ Observe statutory or contractual notice periods
✅ Be socially justified under KSchG
✅ (If applicable) be preceded by works council consultation

📌 A vague or incomplete offer invalidates the entire notice.


4. What Are Your Options as an Employee?

You can respond in three ways:

✅ 1. Accept the Change

  • You accept the new terms and continue working
  • The dismissal part becomes irrelevant
  • No legal risk

⚖️ 2. Accept “with reservation” and challenge the dismissal

  • You temporarily accept the new terms to avoid unemployment
  • At the same time, you file a dismissal protection claim
  • If the court finds the change unjustified, you may revert to your original contract

📌 You must declare this “under reservation” (unter Vorbehalt) and file the lawsuit within 3 weeks.

❌ 3. Reject the Offer

  • The change notice becomes a full dismissal
  • You become unemployed
  • You can challenge the dismissal in court

💡 Most employees choose option 2 to stay employed while defending their rights.


5. Timing: Why 3 Weeks Matter

You must act quickly:

  • 3 weeks from receiving the change notice to file a legal challenge (Kündigungsschutzklage)
  • If you miss the deadline, the change is deemed accepted by law

📌 Even if you accept the change under protest, you must file the claim within this period to protect your rights.


The labor court examines:

  • Whether the original dismissal is socially justified
  • Whether the change was necessary
  • Whether the new conditions are reasonable

Outcomes may include:

  • Reinstatement under original contract
  • Court-approved termination with severance
  • Validation of the change notice if lawful

7. Risks for Employees

A change notice can:

  • Reduce your income
  • Move you to a less desirable location or role
  • Impose new obligations you didn’t agree to
  • Lead to job loss if you reject the offer

📌 Always read the new terms carefully—especially if you’re an expat whose residence permit is tied to employment type or income.


8. Special Considerations for Expats

As an international employee, a change notice can affect:

  • Your residence permit (e.g. Blue Card holders with salary thresholds)
  • Your eligibility to stay if your role changes
  • Your visa compliance if job description or salary are reduced

Before accepting or challenging a change notice, check: ✅ Whether the new terms comply with immigration law
✅ Whether you need to notify the immigration authority (Ausländerbehörde)
✅ Whether you will still meet salary or employment conditions of your permit


9. Severance in Change Notice Situations

Severance is not automatic, but may be:

  • Offered as part of a negotiated exit
  • Awarded by court if dismissal is invalid but reinstatement is impossible
  • Used as a settlement option in labor disputes

💡 Use our Severance Pay Calculator to estimate potential compensation.


10. Best Practices: What to Do If You Receive a Change Notice

✅ Don’t sign or respond immediately
✅ Request time to review (you are entitled to it)
✅ Consult a specialized employment lawyer
✅ Act within 3 weeks to protect your rights
✅ If unsure, accept under reservation and challenge it in court


Conclusion

A change notice in Germany is a complex legal tool that allows employers to modify contracts under strict conditions. While it can be legitimate, it must be clearly justified and fairly presented—and employees have the right to challenge it.

If you receive a change notice, especially as an expat or foreign employee, act quickly and seek legal advice. By using the right strategy, you can protect your contract, your salary—and potentially your right to stay in Germany.