Dismissal Protection in Germany: KSchG, Filing Deadlines, and Severance

Receiving a termination notice is often a shock. But German employment law provides extensive protection. The Protection Against Unfair Dismissal Act (Kündigungsschutzgesetz - KSchG) ensures that terminations are only effective under specific conditions.

When Does Dismissal Protection Apply?

The KSchG applies when:

• The company has more than 10 employees (Section 23 KSchG)
• The employment has existed for more than 6 months (Section 1(1) KSchG)

Counting the 10-Employee Threshold

Employment Type	Count
Full-time (> 30 hrs/week)	1.0
Part-time (20–30 hrs/week)	0.75
Part-time (≤ 20 hrs/week)	0.5
Apprentices	Not counted

Grounds for Dismissal Under KSchG

1. Person-Related Dismissal

Reasons inherent to the employee: long-term illness (with negative prognosis), loss of work permit, lack of qualifications.

2. Conduct-Related Dismissal

Employee misconduct: refusal to work, workplace theft, repeated lateness. Prior written warning usually required.

3. Operational Dismissal

Urgent business needs: decline in orders, business closure, restructuring. Social selection must be performed.

The 3-Week Filing Deadline

The most critical deadline: within 3 weeks of receiving the written termination, an unfair dismissal claim must be filed with the labor court (Section 4 KSchG).

Missing the Deadline

If missed, the termination is deemed legally effective from the start — regardless of whether it was actually unlawful. Exceptions are extremely rare (Section 5 KSchG).

Severance Pay

Legal Entitlement?

There is no statutory right to severance pay. However, in practice, severance is frequently paid:

Typical Severance Formula

0.5 gross monthly salaries x years of service

Example	Calculation
10 years, 4,000 EUR/month	0.5 × 4,000 × 10 = 20,000 EUR
5 years, 3,000 EUR/month	0.5 × 3,000 × 5 = 7,500 EUR
20 years, 5,000 EUR/month	0.5 × 5,000 × 20 = 50,000 EUR

When Is Severance Paid?

• In unfair dismissal proceedings as a settlement
• For operational dismissals under Section 1a KSchG (if the employee waives the right to sue)
• In mutual termination agreements
• Under a social plan

Works Council Consultation

If a works council (Betriebsrat) exists, it must be consulted before every dismissal (Section 102 BetrVG). A dismissal without consultation is void.

Special Dismissal Protection

Certain groups enjoy enhanced protection: pregnant women, employees on parental leave, severely disabled employees (requires integration office approval), works council members, apprentices (after probation).

What to Do After Receiving Notice

1. Stay calm — do not sign anything hastily
2. Review the termination — written form, reasoning, delivery
3. Note the 3-week deadline — mark your calendar
4. Consult a lawyer — ideally within one week
5. Register as job-seeking — within 3 days at the employment agency

Secure Your Documents

Termination letters and all relevant documents should be securely stored. With LOCK.PUB, you can store important documents with password protection and share them securely with your lawyer via iMessage or email — without third-party access.

Statutory Notice Periods

Length of Service	Notice Period
Probation	2 weeks
Up to 2 years	4 weeks
5 years	2 months to month-end
10 years	4 months to month-end
20 years	7 months to month-end

Conclusion

Dismissal protection in Germany is strong — but only effective if you observe the 3-week filing deadline. Review every termination carefully, consult a lawyer, and secure your documents.

Use LOCK.PUB to store sensitive termination documents with password protection and share them securely with your legal counsel.