For most people, a dismissal comes as a shock. Many dismissals, however, can be challenged – because of formal defects, the lack of a valid reason for dismissal, a flawed social selection or because the works council (Betriebsrat) was not properly consulted. What matters is that you act quickly: an unfair dismissal claim (Kündigungsschutzklage) must be filed within just three weeks.
Key points at a glance
- An unfair dismissal claim must be filed within three weeks of receipt of the notice of dismissal (§ 4 KSchG).
- A dismissal is only valid in writing with an original handwritten signature – email, fax or WhatsApp are not sufficient (§ 623 BGB).
- The Dismissal Protection Act (Kündigungsschutzgesetz) applies if your employment has lasted more than six months and the establishment regularly employs more than ten employees.
- Register as a jobseeker with the Federal Employment Agency (Agentur für Arbeit) without delay, at the latest within three days.
- Severance pay is rarely granted automatically – it is usually negotiated in unfair dismissal proceedings.
First steps after receiving notice of dismissal
Stay calm, but act promptly. The first few days after receiving the notice often determine which options remain open to you later. We recommend the following order:
- Record the date of receipt: Note when and how you received the notice of dismissal (handed over in person, letterbox, registered post). Keep the envelope and the original letter.
- Register as a jobseeker: Under § 38 SGB III, you must register as a jobseeker no later than three months before your employment ends; if there are less than three months between learning of the termination and the end of employment, within three days. Late registration can result in a one-week suspension of benefits (Sperrzeit).
- Do not sign anything: Do not sign an acknowledgement of receipt containing a waiver, a settlement receipt (Ausgleichsquittung) or a termination settlement agreement (Abwicklungsvertrag) before you have received advice.
- Gather documents: Your employment contract, amendments, payslips, warnings, references and relevant emails help with the assessment.
- Have a lawyer review the dismissal: The sooner the better – ideally in the first week, so that there is enough time for negotiations before a claim is filed.
Is the dismissal formally valid?
Before looking at the reason for dismissal, we check the formal requirements. Formal defects are surprisingly common in practice and automatically render a dismissal invalid.
Written form and signature
Under § 623 BGB, a dismissal must be in writing and signed by hand. A dismissal by email, text message, messenger, fax or as a scanned PDF is void. Even a qualified electronic signature is not sufficient. A mere initial (abbreviated signature) is not enough either.
Authority to dismiss and power of attorney
If the notice is signed not by the managing director or owner but, for example, by an HR officer or a team leader, that person must be authorised to dismiss. If the notice is not accompanied by an original power of attorney and you were not otherwise informed of the authorisation, you can reject the dismissal under § 174 BGB. The rejection must be made without undue delay – generally within about one week.
Consultation of the works council
Where a works council exists, it must be consulted before every dismissal (§ 102 BetrVG). A dismissal without proper consultation is invalid. Whether the employer informed the works council fully and accurately is often only clarified in court proceedings.
Notice period
A notice period that is too short does not usually make the dismissal invalid as a whole; it then takes effect on the next permissible date. However, the correct termination date can be very important for unemployment benefit, salary and severance pay. We explain the details on our page Notice periods.
Does the Dismissal Protection Act apply?
The strongest protection is provided by the Dismissal Protection Act (KSchG). It applies if two conditions are met:
- Qualifying period: The employment relationship has existed without interruption for more than six months (§ 1 Abs. 1 KSchG).
- Size of establishment: The establishment regularly employs more than ten employees (§ 23 KSchG). Part-time staff count proportionally: up to 20 hours a week as 0.5, up to 30 hours a week as 0.75. Trainees are not counted.
If the KSchG applies, the employer needs a reason that makes the dismissal “socially justified”. In a small business or during the first six months, on the other hand, a dismissal is generally possible even without a particular reason. Even there, however, it is invalid if it is discriminatory (AGG), constitutes victimisation for exercising rights (§ 612a BGB) or violates the principle of good faith.
The three grounds for dismissal
The law distinguishes between dismissals for personal reasons, for conduct-related reasons and for operational reasons. Each category has its own requirements – and its own typical sources of error.
Dismissal for personal reasons
This relates to characteristics or abilities that the employee cannot control – in practice, mainly illness. A dismissal on grounds of illness requires a negative health prognosis, a significant impairment of the employer’s operational interests and a balancing of interests in the employer’s favour. If you were unfit for work for more than six weeks within one year, the employer must first offer occupational integration management (betriebliches Eingliederungsmanagement, BEM) (§ 167 Abs. 2 SGB IX). If no BEM is carried out, the employer’s position in court becomes considerably more difficult.
Dismissal for conduct-related reasons
Here the employer alleges a breach of duty, such as lack of punctuality, refusal to work or failure to follow instructions. As a rule, a prior relevant warning is required. It may only be dispensable in the case of serious breaches of duty.
Dismissal for operational reasons
This requires a business decision that permanently eliminates the need for the work – for example, the closure of a department or the outsourcing of tasks. In addition, there must be no vacant comparable position, and the employer must carry out a correct social selection. Length of service, age, maintenance obligations and any severe disability must be taken into account (§ 1 Abs. 3 KSchG). The social selection in particular can be challenged in many cases.
Special protection against dismissal
Certain groups of people enjoy special protection, which may apply regardless of the size of the establishment and the qualifying period:
- Pregnant women and mothers up to four months after giving birth (§ 17 MuSchG) – dismissal only with the consent of the competent supervisory authority.
- Employees on parental leave from the time parental leave is requested (at the earliest eight weeks before it begins; for parental leave between the child’s third and eighth birthday, at the earliest 14 weeks before) and during parental leave (§ 18 BEEG).
- Severely disabled persons and persons with equivalent status after more than six months of employment – dismissal only with the consent of the Integration Office (Integrationsamt) (§ 168 SGB IX).
- Works council members, election candidates and members of election committees (§ 15 KSchG) – ordinary dismissal is generally excluded.
- Employees on care leave or family care leave (§ 5 PflegeZG) as well as company data protection officers.
Did you know that you can still inform your employer of your pregnancy within two weeks of receiving the notice of dismissal? The special protection against dismissal then applies retroactively (§ 17 Abs. 1 MuSchG).
Severance pay instead of continued employment?
Many of those affected do not want to return to their old job at all, but rather want a fair separation. A statutory entitlement to severance pay exists only in exceptional cases. In practice, however, severance pay is very often agreed in unfair dismissal proceedings: the greater the employer’s risk of losing the case and having to pay back salary, the greater its willingness to pay. A common benchmark is half a gross monthly salary per year of service. Find out more on our page Severance pay.
A strong negotiating position almost always requires that the three-week deadline has been met. Once the deadline has passed, the employer has little reason to make concessions.
What we do for you
- Review of the dismissal for form, deadline, reason for dismissal, social selection and works council consultation
- Filing an unfair dismissal claim within the deadline and representation at the conciliation hearing (Gütetermin) and the main hearing (Kammertermin)
- Negotiation of severance pay, garden leave, employment reference and outstanding claims
- Liaising with your legal expenses insurance
- For employers: preparation and support for legally sound dismissals
Practical examples
The following cases are simplified, typical scenarios from employment law practice. They are for illustration only; each individual case must be assessed separately.
Dismissal in a “small business” with 10.5 employees
Situation: A trade business dismisses a fitter after four years without giving reasons, claiming to be a small business. It employs eight full-time staff, two part-time staff working 25 hours a week each and one mini-jobber.
Legal assessment and approach: Mathematically, this gives 8 + 2 × 0.75 + 0.5 = 10.0 – which is not enough. If, however, it turns out that a further fitter is regularly employed, there are more than ten employees: the KSchG applies, and the employer must set out a reason for dismissal. An exact headcount is therefore worthwhile.
Signed by an HR officer without power of attorney
Situation: An employee receives a notice of dismissal signed “i. A.” (on behalf of) by an HR officer. No power of attorney is enclosed, and it has not been announced within the company that the HR officer is authorised to dismiss.
Legal assessment and approach: The dismissal can be rejected without undue delay under § 174 BGB. The employer must then issue a new dismissal – with the result that the termination date is postponed. At the same time, the deadline for filing a claim continues to run; both routes should be secured in parallel.
Pregnancy discovered only after the dismissal
Situation: A team assistant is dismissed during her probationary period. A week later she learns that she was already pregnant when she received the notice of dismissal.
Legal assessment and approach: If she informs the employer of the pregnancy within two weeks of receipt, the dismissal is impermissible without official consent – even during the probationary period. In addition, a claim should be filed within the deadline.
Dismissal on grounds of illness without BEM
Situation: A warehouse worker was ill for around eight weeks in each of the last two years. The employer dismisses him without having offered occupational integration management.
Legal assessment and approach: In court, the employer must show that a BEM would not have revealed any possibility of continued employment either. This rarely succeeds. The starting position for continued employment or appropriate severance pay is correspondingly good.
Frequently asked questions
Can I be dismissed while I am ill?
Yes. Being unfit for work does not protect you from dismissal. However, the illness itself can only be a reason for dismissal under strict conditions. The deadline for filing a claim also runs during an illness.
Does the notice of dismissal have to state a reason?
Generally not. An exception applies, for example, to trainees after the probationary period (§ 22 BBiG) and in some cases under collective agreements. However, if the KSchG applies, the employer must set out and prove the reason in court.
When is a notice of dismissal deemed to have been received?
Immediately if handed over in person. If it is put in your letterbox, it is deemed received at the time when the letterbox would normally be emptied – often on the same day. Whether you have actually read the letter is irrelevant, for example while you are on holiday.
May I still take holiday after being dismissed?
Your holiday entitlement continues until the end of the employment relationship. If the holiday can no longer be taken, it must be paid in lieu (§ 7 Abs. 4 BUrlG).
What happens if I miss the three-week deadline?
The dismissal is then deemed valid from the outset (§ 7 KSchG). Only in exceptional cases – for example, if you were prevented from filing through no fault of your own – can the claim be admitted late (§ 5 KSchG).
Would you like us to review your case? Send us your documents – we usually respond within 24 hours and tell you the expected costs in advance.
Note: This information provides a general overview of the legal situation (as of November 2026) and does not replace legal advice in an individual case.
This page is a translation of the German original. It is for general information only and does not replace legal advice on your individual case. German version