Labour Court Proceedings in Germany: From Claim to Settlement

German labour courts (Arbeitsgerichte) handle disputes between employees and employers: dismissals, unpaid salary, references, holiday and much more. They are designed to be accessible. You can file a claim without a lawyer, court fees are low, and the first hearing usually takes place within a few weeks.

For expats, the procedure can still feel unfamiliar. It is in German, it starts with a hearing aimed at agreement rather than judgment, and each side pays its own lawyer. This guide walks you through it.

Which Court?

You file at the labour court where your employer has its seat, or where you usually work. For remote workers, this can be the court for your home office.

Managing directors of companies usually go to the civil courts instead. See executives and managing directors.

Step 1: Filing the Claim

The claim can be filed by a lawyer or by you personally, either as a signed letter or at the court's legal application office (Rechtsantragsstelle), where staff help you write it down. A normal email is not enough. Make sure you name the correct employer, meaning the company that employs you under your contract.

For a claim against a dismissal, the deadline is three weeks from the day you received it. This applies to almost all reasons why a dismissal could be invalid, also in small businesses. If you miss it, the dismissal is treated as valid in most cases. Only in exceptional cases can a late claim be admitted. See unfair dismissal claims.

Step 2: The Conciliation Hearing

The first hearing is the conciliation hearing (Gütetermin). In dismissal cases, it should take place within two weeks; in practice, it usually takes place within two to six weeks after filing. If you do not attend and are not represented, the court can decide against you by default.

• Only the presiding judge attends, without the two lay judges.
• The hearing is short, often 15 to 30 minutes.
• The judge discusses the case openly, gives a first view of the chances and suggests a settlement.
• The court may order you to attend in person, even if you have a lawyer.

Many cases end here. A typical settlement turns the dismissal into an agreed end of employment, sets the end date and the severance, and settles holiday, bonus, garden leave and the reference.

Step 3: The Main Hearing

If there is no settlement, the court sets a date for the main hearing (Kammertermin), often several months later. Before that, both sides submit written arguments and evidence.

The court consists of the professional judge and two lay judges, one from the employee side and one from the employer side. The court hears witnesses if needed and decides. Even at this stage, many cases still settle.

Duration

Costs

Lawyer fees. In the first instance, each side pays its own lawyer, regardless of the outcome. This is different from most other German courts and from many other countries. Legal expenses insurance often covers these costs. See legal expenses insurance.

Court fees. They are lower than in other courts, and there is no advance payment. If the whole case ends with a settlement, there are no court fees, although expenses such as witness costs can still arise. If the court decides, the losing side pays them, or both sides share them according to the outcome.

Legal aid. If you cannot afford a lawyer, you can apply for legal aid (Prozesskostenhilfe). Trade union members usually receive legal representation through their union.

From the second instance onwards, the losing side pays both sides' costs, or they are shared according to the outcome. You must be represented there, by a lawyer or a union representative.

Language and Interpreters

The court language is German. If you do not speak German well enough, the court must call an interpreter for the hearing, unless everyone involved speaks your language. Interpreter costs can be charged as court expenses. Written submissions must be in German, and documents in other languages may need to be translated. In practice, your lawyer handles this.

Your Role

• Prepare your facts. Dates, emails, the contract, the dismissal letter, payslips and witnesses.
• Be clear about your goal. Do you want to keep your job or leave with severance? This shapes the strategy.
• Stay calm at the hearing. The judge's comments on your chances are a first assessment, not a verdict.
• Do not agree to a settlement you do not understand. You can ask for a short break or a revocation period, which gives you time to think.

Points for Expats

• Leaving Germany during the case. You can continue the case from abroad through your lawyer. If the court orders you to attend in person, discuss whether you can be excused or join by video. The court decides whether video is allowed.
• Residence permit. A pending claim does not automatically extend a permit tied to your job. Inform the immigration office and ask about your options. See losing your job and your residence permit.
• Expectations. Judges in Germany are actively involved and openly push for settlements. This is normal and usually works in employees' favour.
• Other deadlines. Claims against a fixed term must also be filed within three weeks of the end date. Discrimination claims must be made in writing within two months and filed within three months after that. Register as a jobseeker and, if you hold a permit for employment, inform the immigration office within two weeks.

Frequently Asked Questions