German labor law offers strong protection against unfair dismissal—but there is one exception: extraordinary termination, also known as immediate termination or in German, fristlose Kündigung. This allows an employer (or employee) to end an employment relationship without notice, but only under exceptional circumstances.
An extraordinary termination is a serious legal measure that requires a justified and urgent reason. Employers who misuse it risk legal claims, reputational damage, or reinstatement orders. Likewise, employees facing such termination may be entitled to challenge it in court.
This article explains when extraordinary termination is allowed in Germany, what legal requirements apply, and how employees—especially expats—can protect themselves.
1. What Is Extraordinary Termination?
Extraordinary termination refers to the immediate and notice-free termination of an employment contract due to serious misconduct or breach of trust that makes further collaboration unreasonable.
Key features:
- No advance notice period
- Requires a strong and proven reason
- Must be declared within 2 weeks of learning about the incident
- Usually used as a last resort if no other remedy is possible
📌 It applies to both employers and employees. Either party may initiate it.
2. Legal Basis in German Law
The legal foundation for extraordinary termination is Section 626 of the German Civil Code (BGB).
The law states:
“The employment relationship can be terminated for a compelling reason, if facts exist on the basis of which the terminating party cannot reasonably be expected to continue the employment relationship until the expiration of the notice period.”
In other words: there must be a compelling reason that makes continued employment unreasonable—even for just a few more weeks.
3. Typical Reasons for Extraordinary Termination
Here are examples where extraordinary termination may be justified:
✅ For employers:
- Theft or fraud (even of low-value items)
- Physical violence or threats at work
- Gross insubordination
- Intentional data breaches
- Sexual harassment
- Repeated, unexcused absences (especially after warnings)
- Serious violations of safety rules
✅ For employees:
- Non-payment of wages
- Severe verbal abuse or harassment by employer
- Illegal behavior by employer (e.g. discrimination, coercion)
- Unsafe working conditions despite prior complaints
📌 Each case is fact-specific—courts will examine context, history, and proportionality.
4. Warning Requirement: Is One Always Needed?
In most cases, a prior written warning (Abmahnung) is required before extraordinary termination—especially for behavior that could be corrected (e.g. repeated tardiness).
No warning is needed if:
- The misconduct is so serious that it’s clearly unacceptable
- It would be unreasonable to expect any further cooperation
📌 Employers who terminate without prior warning must be able to prove that a warning would have been useless.
5. Deadline: Two Weeks Rule
The terminating party must issue the extraordinary termination within 2 weeks of becoming aware of the facts justifying the dismissal.
If this deadline is missed, the termination becomes invalid.
6. Required Format and Procedure
An extraordinary termination must:
✅ Be in writing (emails or verbal terminations are invalid)
✅ Be signed by an authorized representative
✅ Be delivered to the employee in person or by registered mail
✅ State the termination date (immediate effect)
✅ Be preceded by works council consultation, if applicable
📌 The reason does not need to be detailed in the letter, but the employee may request written justification afterward.
7. What Employees Can Do After Extraordinary Termination
If you receive an extraordinary termination, you should:
📅 Act Quickly:
You have 3 weeks to file a dismissal protection claim (Kündigungsschutzklage) with the local labor court.
⚖️ Challenge the Termination:
You can argue that:
- The reason was not serious enough
- The employer failed to issue a warning
- The 2-week deadline was not observed
- The behavior was misrepresented or provoked
💶 Claim Damages or Severance:
If the court finds the dismissal unlawful, you may be:
- Reinstated in your role
- Awarded severance pay
- Entitled to back pay and social security coverage
8. Impact on Unemployment Benefits
Receiving an extraordinary termination may trigger a 12-week suspension (Sperrzeit) of unemployment benefits if the employment agency believes you were at fault.
To reduce this risk:
- Challenge the termination legally
- Request that the employer downgrades the dismissal to ordinary
- Document your version of the events in writing
📌 The suspension does not apply automatically, but the burden of proof is on the employee.
9. Special Considerations for Expats
For non-EU employees, extraordinary termination can have immigration consequences:
- Your residence permit may be tied to your employer
- You may lose the right to stay unless a new job is found quickly
- You must inform the immigration office (Ausländerbehörde) promptly
💡 Tip: Some residence permits allow a 3-month job-seeking period. Check with your local authority.
10. Can an Extraordinary Termination Be Avoided?
Yes—through proactive measures:
- Communicate early and resolve conflicts internally
- If you’re warned, acknowledge and correct the behavior
- In uncertain cases, request clarification in writing
- Avoid signing mutual agreements under pressure
📌 If the employer offers a mutual termination agreement (Aufhebungsvertrag) instead, always consult a lawyer before signing—it may waive your rights.
Conclusion
Extraordinary termination is a powerful tool under German labor law—but also a legally risky one. For employers, it requires strict compliance with deadlines, justification, and procedure. For employees, it can mean immediate job loss, blocked benefits, and immigration issues.
If you are affected, act within 3 weeks to assert your rights. Many extraordinary terminations are overturned in court or converted into settlements. Knowing your rights is your best defense.
