A summary dismissal (fristlose Kündigung) ends the employment relationship immediately – without a notice period and often with a suspension of unemployment benefit. The hurdles for it are high. Many extraordinary dismissals therefore do not stand up to judicial review, or can at least be converted into an ordinary termination with an employment reference and severance pay.
Key points at a glance
- A summary dismissal requires good cause that makes it unreasonable to continue the employment until the end of the notice period (§ 626 Abs. 1 BGB).
- The employer must dismiss within two weeks of becoming aware of the relevant facts (§ 626 Abs. 2 BGB).
- The three-week deadline for filing a claim also applies to a summary dismissal.
- In the case of a conduct-related summary dismissal, there is a risk of a suspension of unemployment benefit of up to twelve weeks.
- A prior warning is usually required – except in the case of particularly serious breaches of duty.
What is “good cause”?
The Federal Labour Court (Bundesarbeitsgericht) applies a two-stage test. First, it asks whether the facts are “in themselves” capable of constituting good cause. This is followed by a comprehensive balancing of interests in the individual case: length of service, previous trouble-free employment, degree of fault, risk of repetition and whether milder measures such as a warning or an ordinary dismissal would have sufficed.
Typical categories of cases in which a summary dismissal may be considered:
- Theft or embezzlement, even of items of low value – although here the balancing of interests is decisive
- Working time fraud, such as manipulated time recording
- Physical assault, gross insults or sexual harassment
- Persistent refusal to work or taking holiday without authorisation
- Competing activities while the employment relationship is ongoing
- Feigned incapacity for work or the threat to “fall ill” if holiday is not granted
- Serious breaches of data protection or confidentiality obligations
Even in these cases, a summary dismissal is not automatically valid. This is shown by the well-known decision of the Federal Labour Court in the case of a cashier who had redeemed bottle deposit receipts worth 1.30 euros: after more than 30 years of trouble-free employment, the trust she had built up prevailed, and the dismissal was invalid (BAG, judgment of 10 June 2010 – 2 AZR 541/09).
The employer’s two-week deadline
The employer must dismiss within two weeks after the person authorised to dismiss has obtained reliable and comprehensive knowledge of the relevant facts. The employer may investigate the facts promptly and hear the employee; however, if it drags out the investigation unnecessarily, the deadline is missed and the summary dismissal is invalid. In practice, it is therefore worth examining closely who in the company knew what and when.
Where there is a works council (Betriebsrat), it must be consulted beforehand. It has three days to raise concerns about an extraordinary dismissal (§ 102 Abs. 2 BetrVG).
Dismissal on suspicion
A special case is dismissal on the basis of a strong suspicion of a serious breach of duty, such as theft. It is only valid if strong grounds for suspicion are based on objective facts, the employer has done everything reasonable to clarify the matter and, in particular, has heard the employee on the allegations before the dismissal. Without this hearing, the dismissal on suspicion is invalid. If innocence is later proven, there may be a right to re-employment.
Alternative ordinary dismissal and reinterpretation
Employers often dismiss “without notice, alternatively with notice”. If the summary dismissal does not hold, the court examines the ordinary dismissal. The standards of the Dismissal Protection Act (Kündigungsschutzgesetz) then apply, in particular the requirement of a prior warning. Even if the ordinary dismissal should be valid, you recover your pay for the notice period – and often avoid the benefit suspension.
Consequences for unemployment benefit
If the employee gave cause for the dismissal through conduct in breach of contract, the Federal Employment Agency (Agentur für Arbeit) will generally impose a twelve-week suspension of benefits (Sperrzeit) (§ 159 Abs. 1 Nr. 1 SGB III). The entitlement period is reduced accordingly, by at least a quarter. Converting the dismissal by agreement in the proceedings into an ordinary termination for operational or personal reasons can avert this consequence – however, the settlement must accurately reflect the facts.
Summary dismissal by the employee
Employees can also resign without notice, for example if the employer fails to pay substantial parts of the salary over a longer period, if serious insults or harassment occur, or if the employer violates occupational health and safety regulations. Here, too, a prior warning to the employer is usually necessary. Because of the consequences in terms of benefit suspension and possible claims for damages (§ 628 Abs. 2 BGB), this step should be well prepared.
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.
Manipulated time recording
Situation: A clerk repeatedly clocks in for a colleague who arrives later. The employer finds out through an analysis of video footage and issues a summary dismissal three weeks later.
Legal assessment and approach: Working time fraud can justify a summary dismissal even without a warning. In this case, however, the two-week deadline had been exceeded because the HR department had already known about the matter earlier. The summary dismissal was invalid; the parties agreed on an ordinary termination with a neutral employment reference.
Suspected till discrepancies
Situation: Money repeatedly goes missing at a branch. The employer dismisses a cashier on suspicion without hearing her first.
Legal assessment and approach: Without a prior hearing, a dismissal on suspicion is invalid. The claim was successful; it also emerged that other employees had access to the till as well.
“Then I’ll just be ill”
Situation: After his holiday request is refused, an employee threatens to get a sick note and then actually reports unfit for work.
Legal assessment and approach: Threatening illness if a request is not granted can justify a summary dismissal – regardless of whether an illness actually exists later. For the employee, the exact wording and context were decisive; an ordinary termination was achieved by way of settlement.
Wages unpaid for three months
Situation: For three months, an employee has only been receiving partial payments. She wants to resign without notice and start a new job immediately.
Legal assessment and approach: After a warning setting a deadline, she was able to resign without notice. The outstanding amounts were claimed in court; in addition, damages for the lost remuneration up to the end of the ordinary notice period came into consideration. Because of the risk of a benefit suspension, the approach was agreed with the Federal Employment Agency in advance.
Frequently asked questions
Does the employer have to state the reason for the summary dismissal?
On request, the employer must inform you of the reason for dismissal in writing without undue delay (§ 626 Abs. 2 Satz 3 BGB). However, the validity of the dismissal does not depend on this notification.
Will I still receive an employment reference after a summary dismissal?
Yes. The right to a qualified employment reference exists regardless of how the employment ended. The reference may not simply mention the dismissal.
What happens to my remaining holiday?
Holiday not taken must be paid in lieu when the employment relationship ends – even in the case of a summary dismissal.
Is a summary dismissal possible during the probationary period?
Yes, but here too only for good cause. During the probationary period, an ordinary dismissal with two weeks’ notice is usually sufficient anyway.
Can I prevent a suspension of unemployment benefit?
This is possible if the summary dismissal is invalid or if a termination for other reasons is agreed in the proceedings. An accurately worded settlement is crucial.
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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