If you’re an expat working in Germany and have been dismissed—or fear losing your job—understanding your rights is essential. German labor law provides strong protection against unfair or unjustified terminations. Taking action against unfair dismissal may be your best option to defend your rights, negotiate severance, or even stay employed.
However, strict deadlines apply. Legal action must be taken within three weeks of receiving the termination notice. Our article explains your options, the legal process, and key strategic considerations for expats facing dismissal or a mutual termination agreement (Aufhebungsvertrag).
Content
- 1. How Termination Works in Germany
- 2. Who Can File an Unfair Dismissal Claim?
- 3. Common Grounds for Unfair Dismissal
- 4. What Is an Action for unfair dismissal?
- 5. Deadline: Three Weeks to File
- 6. Legal Proceedings: What to Expect
- 7. Severance Pay in Germany
- 8. Risks of Signing a Mutual Termination Agreement
- 9. Residence Permit Considerations
- 10. Key Takeaways for Expats
- Conclusion
1. How Termination Works in Germany
In Germany, employment can be ended in the following three ways:
- Ordinary termination with notice (e.g. termination due to company restructuring)
- Extraordinary termination without notice (e.g. dismissal for serious misconduct)
- Mutual termination agreement (a voluntary arrangement between employer and employee)
Enhanced protection against unfair dismissal (under the “Protection Against Unfair Dismissal Act”) applies if:
- You have been employed for more than six continuous months, and
- Your employer has more than 10 employees
If these 2 conditions are met, termination must be “legally justified”, based on one of the following reasons:
- Operational reasons (e.g. position eliminated due to business needs)
- Conduct-related reasons (e.g. significant breach of duties or misconduct)
- Personal reasons (e.g. extended illness impacting ability to perform work)
Other reasons for termination do not apply.
2. Who Can File an Unfair Dismissal Claim?
You can take legal action against unfair dismissal if you:
- Are employed in Germany
- Have received a formal written termination, and
- File a claim with the labor court (Arbeitsgericht) within three weeks
This applies to:
- Employees with standard or Blue Card residence permits
- Both full-time and part-time workers
- Expats and foreign professionals with legal work authorization
3. Common Grounds for Unfair Dismissal
Many dismissals are legally invalid due to formal or procedural errors. Examples include:
- Termination not provided in writing
- Lack of a valid reason under employment law
- Insufficient notice period
- Failure to consult the works council (Betriebsrat) if applicable
- Dismissal based on discrimination or retaliation
- Dismissal during protected periods (e.g. pregnancy, parental leave, disability)
Even if the employer claims justification, it must be proven in court. You may be entitled to reinstatement or compensation.
4. What Is an Action for unfair dismissal?
An unfair dismissal claim (known in German as Kündigungsschutzklage) is a lawsuit filed before a German labor court challenging the legality of the termination.
Your objectives may include:
- Being reinstated in your job
- Negotiating a severance package
- Preserving your legal residence status (in the case of non-EU nationals)
These claims are time-sensitive and must be filed within three weeks after receiving the dismissal in writing.
5. Deadline: Three Weeks to File
⚠️ You have exactly three weeks from the date you receive your written notice of dismissal to file an unfair dismissal claim. This is a strict deadline.
After this period:
- The termination becomes legally valid—even if it was unfair
- You lose the right to challenge the dismissal
- Severance or reinstatement is no longer possible
📌 Always consult a labor law attorney immediately upon dismissal.
6. Legal Proceedings: What to Expect
Here’s what typically happens once you file an unfair dismissal claim:
- You or your lawyer file a claim with the local labor court (Arbeitsgericht)
- The court schedules a conciliation hearing (Gütetermin) within 2–6 weeks
- Many cases settle here with a severance agreement
- If no agreement is reached, a full hearing will follow
- The court may rule the dismissal invalid or confirm its legality
The process is:
- Fast and relatively informal
- Free of court fees for employees
- Usually resolved within 2 to 6 months
7. Severance Pay in Germany
There is no automatic, legal right to severance pay under German law. However, severance is often negotiated during dismissal disputes.
A common formula for settlement:
0.5 monthly salaries × years of service
Example:
A 4-year employee earning €4,000/month may receive €8,000 as severance.
Severance amounts can increase if:
- The termination is clearly unlawful
- The employer wants to avoid court
- The employee waives further claims in return
8. Risks of Signing a Mutual Termination Agreement
A mutual termination agreement (Aufhebungsvertrag) is a voluntary agreement between employer and employee to end the contract.
🚨 Risks include:
- Loss of protection under dismissal law
- No severance guarantee unless agreed in writing
- Possible 12-week suspension of unemployment benefits (called Sperrzeit)
- Impact on residence permits for non-EU citizens
- Waiver of your right to file an unfair dismissal claim
📌 Never sign such an agreement without consulting an employment law expert.
9. Residence Permit Considerations
For non-EU expats, job loss can impact your residence and work authorization:
- Blue Card holders may stay in Germany for up to 3 months to find a new job
- Other work permit holders may be subject to stricter time limits
- You must notify the immigration authority (Ausländerbehörde) of your dismissal
- Filing an unfair dismissal claim can help you maintain legal residence during the court process
10. Key Takeaways for Expats
✔️ Act quickly: File your claim within three weeks
✔️ Consult a lawyer before signing any separation document
✔️ Document everything: Employment contract, termination notice, communications
✔️ Register for unemployment benefits if eligible
✔️ Communicate with immigration authorities if your residence depends on employment
✔️ Don’t assume your dismissal is valid—most can be challenged
Conclusion
Taking legal action against unfair dismissal in Germany is a powerful tool for expats to protect their rights, negotiate severance, and maintain residency.
German labor law offers strong safeguards—but only if you act quickly and follow the correct legal procedures. Don’t wait. Seek professional advice and protect your future in Germany.
