Dismissal of German Employees

The German Employment Act

Employment falls under the regulations of the German Employment Act and is based on a private contract agreed upon by an employer and an employee. The German law also contains provisions about the termination of employment and protects employees from unfair dismissal. The provisions on the protection of employees are stipulated in the Termination Protection Act. Based on the Termination Protection Act, German companies must follow proper procedures when dismissing an employee. The types of termination of employment in Germany are categorized into:

• - dismissal for personal reasons,
• - dismissal for conduct-related motives,
• - dismissal for business motives,
• - extraordinary or immediate termination

Dismissal in Germany

A German company may dismiss an employee for personal reasons if the individual is not mentally or physically fit for the job. Other personal reasons include an extended period of illness, alcohol or drug addiction. Before termination, the company must take all measures that might prevent dismissal.

The misbehavior of an employee is a justifiable cause for dismissal in Germany. However, like in the dismissal for personal reasons situation, conduct-related dismissal must occur only when all measures to prevent it have been taken. In case of dismissal for conduct-related motives the main termination grounds are:

• - consecutive lateness for work,
• - refusal to work,
• - absence from work without a good cause,
• - criminal and violent acts at the workplace.

You can contact our law firm in Germany for details about the Employment Protection Act.

Dismissal for business reasons in Germany

A German company may dismiss an employee for business reasons in the occupied position has been removed from the company’s organizational chart due to certain changes. Among the reasons for termination for business-related reasons are:

• - company restructuration,
• - the German company will be liquidated,
• - insufficient work.

German labor courts may review a company’s decision to terminate an employee’s contract under the three motives above.

Extraordinary termination in Germany

Extraordinary or immediate dismissal of an employee may only occur in cases of serious misbehavior that would make the continuance of work relations impossible for both employer and employee. The decision for extraordinary dismissal in Germany must be immediately and imperative. Among the accepted reasons for extraordinary dismissal are:

• - theft,
• - disclosure of confidential information,
• - disruption of the work environment.

Immediate termination in Germany is valid provided that it takes place within 2 weeks after the reason for termination is communicated.

Our lawyers in Germany also offer legal assistance in case of unfair dismissal.