German employment law offers strong protection against dismissal to ensure fair treatment in the workplace. While many international professionals working in Germany are employed under fixed or open-ended contracts, few are fully aware of their rights when facing termination.
Unlike “at-will” employment systems in other countries, employers in Germany must justify every termination and comply with strict procedural requirements—especially for long-term employees.
This guide explains the general legal framework for protection against dismissal in Germany, including who is protected, how terminations must be carried out, and how employees can respond.
Content
- Overview of Protection Against Dismissal
- When Does the Dismissal Protection Act Apply?
- Types of Termination in Germany
- Notice Periods
- Fair Dismissal Process
- Social Selection Process
- Extraordinary Termination
- Special Protections against Dismissal and Exemptions
- Challenging a Dismissal
- Practical Tips for Expats
- Real-Life Scenarios
- Conclusion
1. Legal Basis: General Protection Against Dismissal
General protection against dismissal is governed by the Protection Against Dismissal Act (in German: Kündigungsschutzgesetz or KSchG).
It applies when:
- The employee has been working in the same company for more than 6 consecutive months, and
- The company regularly employs more than 10 employees
If these conditions are met, the employer must provide a valid reason for any termination. Otherwise, the dismissal may be considered unlawful.
2. Types of Dismissal Covered
The law applies to the following types of terminations:
- Ordinary dismissal with notice (based on business, personal, or conduct reasons)
- Extraordinary dismissal without notice (only in exceptional cases)
- Fixed-term contracts may end without dismissal, unless prematurely terminated
- Mutual termination agreements (Aufhebungsvertrag) are outside this scope but should be handled with caution
📌 The law does not cover dismissals during probation periods (first 6 months), which are subject to fewer restrictions.
3. Valid Grounds for Termination
Under German law, employers may only terminate employment for socially justified reasons. These fall into three categories:
1. Operational reasons
- Business closures
- Departmental restructuring
- Economic downturn
➡ The employer must prove that the employee’s position is no longer needed and that no suitable alternative role exists.
2. Conduct-based reasons
- Repeated unexcused absences
- Serious breach of trust
- Misuse of company resources
➡ Usually requires prior written warnings (Abmahnung).
3. Personal reasons
- Long-term illness affecting performance
- Loss of work permit or driving license (if essential)
- Inability to fulfill job duties permanently
➡ Must be supported by documentation and medical assessments.
4. Procedural Requirements for a Valid Dismissal
A dismissal must follow several key steps to be legally valid:
| Requirement | Explanation |
|---|---|
| Written notice | Termination must be delivered in writing—not via email or orally |
| Signature | The letter must be personally signed by an authorized company representative |
| Notice period | Must comply with statutory or contractual notice terms |
| Social justification | The reason must be appropriate under the Protection Against Dismissal Act |
| Consultation (if applicable) | Works council must be consulted in companies with employee representation |
Failure to comply may render the termination invalid.
5. Notice Periods in Germany
The standard statutory notice periods for ordinary dismissal are:
| Length of Employment | Notice Period (by employer) |
|---|---|
| Less than 2 years | 4 weeks (to the 15th or end of a month) |
| 2–5 years | 1 month |
| 5–8 years | 2 months |
| 8–10 years | 3 months |
| Over 10 years | Up to 7 months |
Employees may terminate with 4 weeks’ notice unless otherwise agreed in the contract.
6. When Are Terminations Invalid?
Common reasons for invalid dismissals include:
- No valid justification under one of the three permitted categories
- Improper or missing written notice
- Employer failed to observe the notice period
- Termination was discriminatory (e.g. based on nationality, gender, religion)
- Employer did not consult the works council (if applicable)
- Dismissal occurred during special protection periods (e.g. pregnancy, parental leave)
In such cases, the employee may file an unfair dismissal claim to challenge the termination.
7. Filing a Dismissal Claim: Deadlines and Process
Employees have the right to file an unfair dismissal claim (Kündigungsschutzklage) if they believe the termination is invalid.
Key rules:
- The claim must be filed within 3 weeks of receiving the termination letter
- It must be filed with the labor court (Arbeitsgericht)
- If successful, the court may:
- Reinstate the employee, or
- Confirm a settlement with severance
Employees are not required to pay court fees, even if they lose.
8. Severance Pay and Settlements
There is no automatic right to severance pay in Germany.
However, severance is frequently agreed upon:
- In out-of-court settlements
- During the court conciliation hearing
- As part of a mutual termination agreement
Severance is typically calculated using this rule of thumb:
0.5 monthly salaries × years of service
📌 The actual amount is negotiable and depends on the case specifics.
9. Protection During Probation
During the first 6 months of employment, employees are not covered by the general protection against dismissal. However:
- The termination must still be in writing
- Discrimination or bad faith dismissals are still prohibited
- Notice periods during probation are typically 2 weeks
10. What Expats Should Know
- German law does not allow “at-will” dismissal—every termination must be justified
- Even without a union, most employees are protected after 6 months
- Residence permits tied to employment may be affected by job loss—consult immigration law
- Never sign a termination or settlement agreement without legal review
- If in doubt, contact a labor law attorney and act within 3 weeks of dismissal
Conclusion
Germany’s system of protection against dismissal offers employees robust legal safeguards—but only if they act quickly and understand the process.
For expats, this protection ensures that termination is never arbitrary, and any job loss must be justified and properly executed. By knowing your rights and deadlines, you can defend your position, negotiate severance, or even return to your job.
