'Termination of an Employee by an Employer in Germany: Grounds,

Termination initiated by the employer in Germany is called “Kündigung.” It must be issued in writing, delivered to the employee, and comply with the notice periods, the employment contract, the law, and, in many cases, the provisions of the Kündigungsschutzgesetz (Employment Protection Act). If an employee believes the termination is unlawful, the main deadline for taking action is short: typically three weeks from the date of receiving the written “Kündigung” to file a lawsuit with the labor court.

For foreign nationals, termination often affects not only their income but also their residence permit. Therefore, after receiving the letter, it is important not to sign any additional agreements in a hurry, to check the deadlines, to register with the Agentur für Arbeit, and, if necessary, to promptly seek advice on labor law and immigration status.

What Laws Apply in the Event of Termination

An employee’s termination is governed not by a single law, but by a set of rules:

• Civil Code (BGB): written form, standard notice periods (Kündigungsfrist), termination without notice (fristlose Kündigung);
• Kündigungsschutzgesetz (KSchG): protection against unfair dismissal;
• Works Constitution Act (BetrVG): involvement of the works council, if one exists;
• Social Code (SGB): obligations toward the Employment Agency and benefits;
• Special laws protect pregnant women, people with disabilities, parents on parental leave, apprentices, and other groups.

The termination notice must be in writing and signed. A verbal notification, a message via a messaging app, or an email does not, in and of itself, constitute a valid written termination notice. However, even if the document appears to be improperly drafted, it is best not to delay: the deadlines for seeking legal recourse may begin from the moment you receive the letter.

When General Protection Against Dismissal Applies

General protection against dismissal under the KSchG (German Employment Protection Act) generally applies if two conditions are met:

• the employee has been working for the employer for more than six months;
• The company is not considered a “small business” under the KSchG, meaning it generally has more than 10 employees, taking into account the rules for calculating headcount.

If employment protection applies, the termination must be socially justified. In practice, the employer must rely on one of three types of grounds: operational (betriebsbedingt), personal (personenbedingt), or behavioral (verhaltensbedingt).

In small companies or during the first six months of employment with an employer, protections are weaker, but the termination must still comply with prohibitions against discrimination, the principle of good faith, the written form requirement, special protections, and contractual provisions.

Who Cannot Be Dismissed Without Special Conditions

Some employees have special protection against dismissal (Sonderkündigungsschutz). This does not mean dismissal is absolutely impossible, but the employer must meet additional requirements or obtain approval from the relevant authority.

Protected groups often include:

• For pregnant women and women who have recently given birth, see and protection during pregnancy and childbirth at;
• employees on parental leave;
• People with a recognized severe disability, where the consent of the Integrationsamt is usually required; see and the rights of people with disabilities at;
• members of the works council;
• Trainees after the probationary period; see Ausbildung;
• Employees protected by special provisions in their employment contract, a collective bargaining agreement, or the law.

Dismissal due to pregnancy, disability, origin, religion, gender, or other protected characteristics may be unlawful. If there are indications of such a reason in the letter or the employer’s actions, this should be documented in writing.

Probationary Period

The probationary period (Probezeit) can last up to six months if the parties have agreed to it. During this time, the statutory notice period (Kündigungsfrist) is often two weeks. The employer is generally not required to provide a detailed justification for the termination if general protection against dismissal (Kündigungsschutz) has not yet taken effect.

However, certain restrictions remain: the termination must be in writing and must not violate special protection against dismissal, anti-discrimination laws, maternity protection, or other special regulations.

Fixed-Term Contract

A fixed-term employment contract (Befristeter Arbeitsvertrag) usually ends on the agreed-upon date without a separate notice of termination (Kündigung). Early termination is generally possible only if permitted by the contract, a collective bargaining agreement (Tarifvertrag), or the law.

The rules governing fixed-term contracts are regulated by the Teilzeit- und Befristungsgesetz. If a fixed-term contract was drawn up incorrectly or renewed in violation of the law, an employee can challenge not only the termination but also the validity of the fixed-term status itself. See also and the terms of the employment contract at.

Betriebsbedingte Kündigung: Dismissal for Business Reasons

“Betriebsbedingte Kündigung” is used when an employer states that a position is no longer needed due to a decline in orders, the closure of a department, restructuring, the transfer of functions, or staff reductions.

Under the current KSchG, a mere reference to “economic difficulties” is not sufficient. The following are typically examined:

• Is there a genuine business decision?
• whether this specific need for labor is disappearing;
• Is it possible to transfer the employee to another suitable position?
• Was the Sozialauswahl properly conducted among comparable employees?
• Was the works council consulted, if one exists?

If a company implements Kurzarbeit, this does not always rule out future layoffs, but it can serve as an argument in a dispute over whether the job has actually been eliminated. See Kurzarbeitergeld.

Insolvency and Termination

If a company goes bankrupt, the employment contract does not automatically terminate. The insolvency administrator or the employer may dismiss employees, but must comply with specific regulations. In insolvency proceedings, a special rule regarding the notice period applies under § 113 InsO: a maximum of three months to the end of the month, unless a shorter period applies.

It is important for employees to promptly request their pay stubs and verify their eligibility for insolvency benefits through the Agentur für Arbeit.

Termination for Personal Reasons: Grounds Related to the Ability to Perform Work

Termination for personal reasons is not related to misconduct, but rather to the fact that the employee is objectively unable to perform their job. The most common example is a long-term or recurring illness.

Dismissal due to illness is not automatically lawful. Typically, the following factors are assessed: the prognosis, the duration of absences, the burden on the employer, the possibility of alternative work, and whether a Company Reintegration Management (BEM) process was conducted if the employee was ill for more than six weeks within a year.

Being on sick leave does not in itself protect against termination in all cases: it is possible to receive a termination notice while on sick leave. However, the grounds and procedure may be disputable. Practical issues regarding sick leave are described in the article “” (Sick Leave in Germany) at.

Dismissal for Conduct-Related Reasons and Written Warnings

Dismissal for cause applies when an employer believes that an employee has breached their duties: absenteeism, systematic tardiness, refusal to perform work, gross violation of rules, conflict of interest, theft, insults, or disclosure of confidential information.

In many cases, a written warning (Abmahnung) is required before a standard termination: a written notice describing the violation, a demand to cease the behavior, and the possible consequences. An Abmahnung is not always mandatory, but in cases of correctable violations, its absence can be a significant argument in the employee’s favor.

If a written warning (Abmahnung) seems unjustified:

1. Do not sign an admission of guilt if you do not agree with the text.
2. Keep the document and evidence: schedules, correspondence, and witnesses.
3. You can submit a counterstatement to be included in your personnel file.
4. In disputed cases, it is advisable to seek advice on whether to demand the removal of a warning.

Related risks may also involve criminal law if the employer alleges theft, fraud, or document forgery. General overview: Criminal law in Germany:.

Termination without notice

Termination without notice (Fristlose Kündigung) under § 626 BGB is dismissal without the usual notice period for good cause. The employer must act quickly: once they become aware of the relevant circumstances, they typically have two weeks to decide on termination without notice.

This type of termination is used only in cases of serious violations, when it is not possible to continue the employment relationship until the end of the regular term. Employees should check:

• Was there truly a valid reason?
• Whether the employer complied with the two-week response period;
• Was a prior written warning (Abmahnung) required?
• Was the works council properly consulted?
• Whether the termination is disproportionate.

Termination without notice is particularly risky in terms of unemployment benefits and one’s reputation, so it’s usually worth reviewing it promptly.

Termination Agreement and Severance Pay

An Aufhebungsvertrag is not a termination by the employer, but rather an agreement between the parties to terminate the employment contract. You should sign it with caution: it may deprive you of the opportunity to contest the Kündigung and lead to a Sperrzeit for Arbeitslosengeld if the Agentur für Arbeit determines that the employee contributed to the loss of their job.

Severance pay in Germany is not automatically paid out with every termination. It may be provided for in a social plan, an offer under Section 1a of the German Employment Protection Act (KSchG), an agreement between the parties, or a court settlement. The amount and tax implications depend on the specific situation.

The tax relief under the “Fünftelregelung” for severance pay has changed in recent years and depends on the rules in effect for the year of payment. Therefore, it is best to have the calculation reviewed by a tax specialist before signing any agreement. General tax questions: ; tax return in Germany:.

Notice Periods (Kündigungsfrist)

Unless otherwise specified in the employment contract or collective bargaining agreement, the basic notice periods are set forth in § 622 of the German Civil Code (BGB). For an employee, the standard notice period is usually four weeks, effective by the 15th of the month or by the end of the calendar month. For an employer, the notice period increases with the length of service with that employer.

Length of service with the employer	Minimum notice period for termination by the employer under § 622 BGB
less than 2 years	4 weeks by the 15th or by the end of the month
2 years or more	1 month before the end of the month
5 years or more	2 months before the end of the month
8 years	3 months until the end of the month
10 years	4 months until the end of the month
12 years	5 months until the end of the month
15 years or more	6 months by the end of the month
20 years	7 months by the end of the month

During an agreed-upon probationary period, the deadline may be two weeks. A collective bargaining agreement may specify different deadlines, sometimes shorter or longer. Therefore, you should always compare the law, your employment contract, the company agreement, and the collective bargaining agreement.

Original provision: https://www.gesetze-im-internet.de/bgb/__622.html

What to Do After Receiving a Termination Notice

Once you receive the letter, follow this brief checklist:

1. Record the date you received the termination notice: deadlines are often calculated from this date.
2. Do not sign anything other than an acknowledgment of receipt unless you understand the consequences.
3. Check whether there is a works council (Betriebsrat), special protection against dismissal (Sonderkündigungsschutz), pregnancy, severe disability, parental leave, or sick leave involved.
4. Register immediately as a job seeker (arbeitssuchend) with the Agentur für Arbeit: usually no later than three months before the end of your employment, or—if you find out later—within three days of learning about the termination of your contract.
5. File a separate unemployment registration (Arbeitslosmeldung) when you become unemployed or in advance within the permitted timeframe.
6. Check the deadline for filing a Kündigungsschutzklage: typically three weeks from receipt of the written Kündigung.
7. Request a work reference, final pay statement, vacation pay, employment certificate, and other documents.

For Arbeitslosengeld I, your insurance history, timely registration, and the reason for termination are usually important factors. The amount is often 60% of your estimated net income, or 67% if you have a child, but the actual calculation is made by the Agentur für Arbeit. See Arbeitslosengeld I.

Documents You Should Request

Upon termination of employment, an employee usually needs:

• Notice of termination;
• latest pay stub, see ; pay stub;
• Lohnsteuerbescheinigung, see Lohnsteuerbescheinigung;
• Employment certificate for the Agentur für Arbeit;
• Vacation certificate;
• Arbeitszeugnis, see ; reference from the employer;
• Confirmation of the return of company property.

If part of your salary, vacation pay, bonuses, or overtime pay has not been paid, check the limitation periods in your employment contract or collective bargaining agreement. These deadlines may be short.

Labor Court

A claim for protection against dismissal (Kündigungsschutzklage) is filed with the labor court (Arbeitsgericht). In the first instance for labor disputes, a lawyer is not always required, but one is often necessary for complex cases. A labor union (Gewerkschaft) can also help if the employee is a union member, or legal expenses insurance (Rechtsschutzversicherung) if it was taken out in advance.

The main goal of the lawsuit is to establish that the employment relationship has not been terminated by the dismissal. In practice, many cases end in a settlement (Vergleich): the parties agree on a termination date, severance pay (Abfindung), a reference (Zeugnis), and other terms. However, there is no guarantee of severance pay.

People with low incomes can check their eligibility for legal aid (Prozesskostenhilfe). It is best to assess legal costs and the prospects of the case before filing a lawsuit. See for legal insurance, and for legal advice, and.

Dismissal of a Foreign National and Residence Permit

If your residence permit is work-related, termination may affect your right to stay. You usually need to notify the Ausländerbehörde of a significant change in your employment status and quickly find a new basis for your residence: a new job, a job search period, studies, family-based grounds, or another status.

Deadlines and options depend on the specific residence permit. The rules differ for the Blue Card, the skilled worker visa (Fachkraft), and other permits. Useful related resources:

• residence permit in Germany;
• Blue Card;
• work visa for skilled workers (Fachkraft);
• Niederlassungserlaubnis.

If you already have a permanent residence permit (Niederlassungserlaubnis), losing your job generally does not require an extension of your residence permit, but it may affect your income, benefits, and naturalization plans.

Common Mistakes After Being Laid Off

• wait for “clarification” from the employer and miss the three-week deadline for filing a lawsuit;
• Signing a termination agreement (Aufhebungsvertrag) without verifying the waiting period (Sperrzeit) and severance pay (Abfindung);
• failing to register with the Agentur für Arbeit on time;
• arguing verbally and failing to preserve evidence;
• ignoring the works council, the union, or legal expense insurance;
• failing to check how the termination affects your residence permit;
• Don’t forget to request a reference (Zeugnis) and the documents needed for unemployment benefits (Arbeitslosengeld).

Brief Conclusion

After receiving a termination notice in Germany, deadlines—not emotions—are what matter. Check the written form, the grounds for termination, the notice period, special protections, the relevant documents, and your registration with the Agentur für Arbeit. If you wish to challenge the termination, keep in mind the three-week deadline for filing a claim with the labor court. Foreign nationals with a work residence permit should simultaneously verify the immigration implications and report any changes to the Ausländerbehörde in a timely manner.