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Employment law · Protection against dismissal

Dismissed? You have three weeks.

Under German law, this deadline decides whether you can challenge your dismissal – with the aim of keeping your job or obtaining fair severance pay. We review your dismissal at short notice and represent you in negotiations and before the labour court. We advise you in English.

Book an initial assessment What to do now

Phone +49 89 55 26 26 0 · Email info@copyroth.de

Deadline calculator

When must the claim be filed?

A claim for unfair dismissal must reach the labour court within three weeks of receiving the written notice of dismissal (Section 4 of the German Protection Against Unfair Dismissal Act, KSchG). Enter the date on which you received the notice.

Last day of the deadline –

Non-binding calculation for a claim before a Bavarian labour court. It takes into account weekends and the public holidays that apply throughout Bavaria; local holidays such as Assumption Day are deliberately ignored. Other holidays may apply at labour courts outside Bavaria. What counts is the date you actually received the notice, which may differ from the date of the letter. Do not wait until the last day – the claim must have reached the court by then. Special cases requiring official approval, for example for severely disabled employees or during maternity protection, are not covered (Section 4 sentence 4 KSchG). If in doubt, have us check the deadline.

Legal basics

The key points at a glance

Does the Protection Against Unfair Dismissal Act apply?

General protection against dismissal applies if you have been employed for more than six months and the business regularly employs more than ten employees. Part-time staff count proportionately – 0.5 for up to 20 and 0.75 for up to 30 hours a week. The three-week deadline for filing a claim applies in every case, however.

Written form

A dismissal must be given in writing with a handwritten signature (Section 623 of the German Civil Code). A dismissal by email, text message or WhatsApp is invalid. If there is a works council, it must be consulted before every dismissal.

Grounds for dismissal and social selection

Where the Act applies, the employer needs a reason relating to your person or your conduct, or urgent operational requirements. For redundancies, the employer must also carry out a proper social selection among comparable employees. Pregnant employees, employees on parental leave and severely disabled employees enjoy special protection.

Summary dismissal

Dismissal without notice requires good cause that makes continuing the employment unreasonable. The employer must give it within two weeks of learning the relevant facts. The three-week deadline for filing a claim applies here too.

First steps

What to do now

Do not sign anything in a hurry

Put aside any termination or settlement agreement or waiver receipt you are asked to sign. A signature generally cannot be revoked.

Gather your documents

The notice of dismissal with its envelope, your employment contract and any amendments, your latest payslips and any agreements on bonus, company car or equity programmes.

Register as a jobseeker

Register with the Federal Employment Agency (Agentur für Arbeit) no later than three months before your employment ends or, if less time remains, within three days of receiving the notice. This applies even if you file a claim.

Arrange a consultation

Call or email us. We review your dismissal and discuss with you which course of action best serves your goals.

More than the dismissal

What else needs to be settled

A dismissal often raises further questions: what happens to your bonus, holiday and company car? Does a non-compete clause apply? What will your reference say? We look at your situation as a whole and negotiate a solution that also keeps your next career steps in mind.

Variable pay

Bonus and target agreements, profit shares and equity programmes often contain their own rules for termination. They should be part of any solution.

Garden leave and company car

Whether and on what terms you are released from work, whether you keep the company car and how remaining holiday is treated are often part of the negotiation.

Non-compete clause

A post-contractual non-compete clause can significantly restrict your next steps. Whether it is valid and whether you want to keep it should be clarified early on.

Senior executives

Special rules apply to senior executives (leitende Angestellte), for example to an application to terminate the employment against severance pay. How you are classified therefore matters.

Reference and communication

A good written reference (Arbeitszeugnis), agreed wording on your departure and an orderly handover are often just as important for your future as the severance pay.

Tax treatment

Under certain conditions, severance pay may be taxed at a reduced rate. Genuine severance payments for the loss of a job are currently exempt from social security contributions. We do not provide tax advice, but on request we coordinate timing and structure with your tax adviser.

The procedure

How an unfair dismissal claim proceeds

Review and filing

within the three-week deadline

We check form, deadlines, works council consultation, special protection and the stated reasons. We then file the claim with the labour court.

Conciliation hearing

usually a few weeks after filing

The presiding judge explores whether an amicable solution is possible. Many cases already end here with a settlement.

Main hearing and judgment

if no agreement is reached

Without an agreement, the court – including lay judges – decides after a further exchange of written submissions. A settlement remains possible at any time.

Severance and costs

A realistic assessment

Severance calculator

What severance can you expect?

A common starting point for negotiations is the rule of thumb of half a gross monthly salary per year of service. It corresponds to the statutory severance under Section 1a KSchG. The actual outcome depends above all on the employer's litigation risk and may be considerably higher or lower.

Standard severance (0.5 salaries per year of service) –

Non-binding guidance, not a forecast for your case. There is a statutory right to severance pay only in exceptional cases, for example under Section 1a KSchG where the employer offers it with a dismissal for operational reasons. The monthly salary includes everything you are entitled to in cash and in kind in the last month (Section 10(3) KSchG), such as a company car. Length of service is counted in full months; incomplete months are not included. Amounts are gross. Severance pay is subject to income tax but, as genuine compensation for the loss of a job, is currently exempt from social security contributions. The calculator does not replace tax advice.

Severance pay

There is a statutory right to severance pay only in exceptional cases. In practice, it is negotiated. The amount depends above all on how robust the dismissal is and what financial risk the employer bears in the proceedings.

  • If the employer loses, it must pay your salary for the entire duration of the proceedings (back pay for default of acceptance) and continue to employ you.
  • Anything you earn elsewhere during this period, or wilfully fail to earn, is deducted (Section 11 KSchG). You must therefore make genuine efforts to find a new job and consider reasonable offers.
  • The less likely it is that you will soon find a new job despite these efforts, the higher the employer's risk – and the stronger your negotiating position.
  • Half a monthly salary per year of service is a common benchmark. Depending on the litigation risk, the result may be higher or lower.
  • Without a claim filed in time, the dismissal is deemed valid – and there is nothing left to negotiate.

Costs

In first-instance labour court proceedings, each party bears its own legal fees regardless of the outcome (Section 12a of the Labour Courts Act). We inform you about this before we start work.

  • Legal expenses insurance covering employment matters usually pays the costs.
  • We request cover from your insurer free of charge.
  • On request, we agree a transparent fee arrangement.

More on costs and legal expenses insurance →

Your contacts

Personal support – from the first conversation

Your case is handled by an experienced lawyer who supports you throughout the entire process – in English if you wish.

Dr. Gerd Wiedemann

Dr. Gerd Wiedemann

Partner · Certified specialist in employment law · with the firm since 1988

wiedemann@copyroth.de
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Dr. Kristian Horn

Dr. Kristian Horn

Partner · Certified specialist in employment law and in commercial and corporate law

horn@copyroth.de
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Dr. Stefan Rieger

Dr. Stefan Rieger

Lawyer · Employment law

rieger@copyroth.de
View profile →
Since 1898Law firm in Munich
Employees and employersExperience from both sides
Gewürzmühlstraße 5München-Lehel
FAQ

Questions clients often ask

Am I entitled to severance pay?

As a rule, no. There is an entitlement only in special cases, for example under a social plan agreed between employer and works council, under a collective agreement, or where the employer offers severance under Section 1a KSchG. For senior executives, the employer can have the court terminate the employment against severance pay without giving reasons (Section 14(2) KSchG). The reason most separations still end with severance pay is economic: if a dismissal is open to challenge, the employer bears a litigation risk. If it loses, it must pay your salary for the whole duration of the proceedings and continue to employ you. Anything you earn elsewhere in that time, or wilfully fail to earn, is deducted. The more doubtful the dismissal and the less likely you are to find a new job soon despite genuine efforts, the greater this risk. In essence, severance pay is the price the employer pays to remove it.

Do I have to sue to get severance pay?

In most cases, yes. If no claim is filed within three weeks, the dismissal is deemed valid from the outset under Section 7 KSchG – even if it was flawed. The employer then has no reason to pay severance. Without a timely claim, you have practically no basis for negotiation.

What if I am offered a termination agreement?

Have it reviewed before you sign. A termination agreement can trigger a suspension of unemployment benefit and cut off claims. Careful drafting can often reduce this risk considerably. More on termination agreements (German) →

Do I have to attend court in person?

That depends on the court and the stage of the proceedings. The Munich Labour Court often does not order personal attendance at the conciliation hearing, but frequently does for the main hearing. Proceedings are conducted in German; we prepare you for every hearing and accompany you.

Do I keep working during the proceedings?

Your employment continues until the notice period expires. After that, whether you continue to be employed depends on the individual case. A settlement often also includes garden leave.

How quickly can I get an appointment?

Because of the short deadline, we aim to provide a prompt initial assessment in dismissal cases. It is best to call us directly and have your notice of dismissal to hand.

Contact

Have your dismissal reviewed

The sooner you get in touch, the more options remain. We take time for your concerns and tell you frankly how we assess your prospects.

Phone +49 89 55 26 26 0

Email: info@copyroth.de
Dr. Roth & Kollegen Rechtsanwälte Partnerschaft mbB
Gewürzmühlstraße 5 · 80538 Munich, Germany

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