The unfair dismissal claim (Kündigungsschutzklage) is the key instrument for defending yourself against a dismissal – and at the same time the most effective lever for obtaining appropriate severance pay. Here you will learn how proceedings before the Labour Court (Arbeitsgericht) work, what they cost and what matters strategically.
Key points at a glance
- The claim must reach the Labour Court within three weeks of receipt of the written notice of dismissal (§ 4 KSchG).
- The first stage is the conciliation hearing (Gütetermin), often only a few weeks after the claim is filed; many cases end there with a settlement.
- At first instance, each party bears its own legal fees (§ 12a ArbGG).
- If you win the case, the employer generally has to pay the salary for the intervening period (default of acceptance, Annahmeverzug, § 615 BGB).
- If the proceedings end in a settlement, no court fees are charged.
Calculating the deadline correctly
The deadline begins when the notice of dismissal is received. It ends three weeks later on the same weekday as the day of receipt (§§ 187, 188 BGB). If the deadline ends on a Saturday, Sunday or public holiday, it is extended to the next working day (§ 193 BGB).
| Receipt of dismissal (examples for 2026) | End of deadline (receipt by the court) |
|---|---|
| Monday, 2 November | Monday, 23 November |
| Friday, 13 November | Friday, 4 December |
| Friday, 4 December | Monday, 28 December (25/26 December public holidays and weekend) |
What counts is receipt by the Labour Court, not the time of sending. We file claims electronically via the special electronic lawyers’ mailbox – this saves valuable days.
Missed the deadline – what now?
If, despite exercising all reasonable care, you were prevented from filing the claim in time – for example due to a hospital stay with no opportunity to instruct anyone – the court may admit the claim late (§ 5 KSchG). The application must be made within two weeks of the obstacle being removed, and no later than six months after the end of the missed deadline. A pregnant employee who only learns of her pregnancy after the deadline has expired can likewise apply for late admission of the claim.
Where is the claim filed?
The competent court is the Labour Court at the employer’s registered office or at the usual place of work (§ 48 Abs. 1a ArbGG). For Hanover, the Hanover Labour Court (Arbeitsgericht Hannover) has jurisdiction, and in appeal proceedings the Lower Saxony Regional Labour Court (Landesarbeitsgericht Niedersachsen). We represent clients before all Labour Courts in Germany – including by video hearing, where the court permits this.
How the proceedings work
1. Filing the claim
In the claim, we apply for a declaration that the employment relationship has not been terminated by the dismissal. We often combine this with a general application for a declaratory judgment (against further dismissals), an application for continued employment and – where appropriate – payment claims, for example for outstanding remuneration.
2. Conciliation hearing
The court first summons the parties to a conciliation hearing before the presiding judge (§ 54 ArbGG). The aim is an amicable solution. The court often gives an initial assessment at this stage. A large proportion of unfair dismissal proceedings are concluded at this stage by a settlement – often with severance pay, garden leave and a good employment reference.
3. Main hearing
If the conciliation hearing fails, written submissions from both sides are followed by the main hearing (Kammertermin) before the chamber, consisting of one professional judge and two lay judges. The employer must now set out and prove the reasons for dismissal. Settlements are still possible and common at this stage too.
4. Judgment and appeal
In disputes about the continued existence of an employment relationship, an appeal to the Regional Labour Court is always admissible against the judgment (§ 64 Abs. 2 c ArbGG). The deadline for appeal is one month from service of the judgment.
How much does an unfair dismissal claim cost?
The costs depend on the amount in dispute. In unfair dismissal proceedings, this is at most three months’ gross income (§ 42 Abs. 2 GKG). Special features of Labour Court proceedings:
- No reimbursement of costs at first instance: Each party bears its own legal fees, even if it wins (§ 12a ArbGG).
- Court costs: If the proceedings end in a settlement, court fees are waived entirely. No advance on costs is charged.
- Legal expenses insurance: If you have employment legal expenses cover and the waiting period has expired, the insurer will generally pay the costs minus the excess.
- Legal aid (Prozesskostenhilfe): If your income is low, the state may bear the costs in full or in part.
We will tell you the expected costs before we start work. If required, we agree transparent fees.
Salary during the proceedings: default of acceptance
If the court finds that the dismissal was invalid, the employment relationship continued to exist. The employer must then generally pay the salary for the period since the notice period expired (back pay due to default of acceptance, § 615 BGB). Other earnings, unemployment benefit and anything you have maliciously failed to earn are offset against it (§ 11 KSchG). According to the case law of the Federal Labour Court (Bundesarbeitsgericht), ignoring job offers from the Federal Employment Agency (Agentur für Arbeit) can be detrimental. You should therefore document your job application efforts.
The employer’s risk of having to pay back salary grows with every month. It is one of the most important reasons why employers are willing to agree to severance settlements.
Unemployment benefit during the claim
The claim does not prevent you from receiving unemployment benefit. If the employer does not pay after the notice period has expired, you receive unemployment benefit by way of what is known as “Gleichwohlgewährung” (provisional payment). If you win later, your claim to the back pay passes to the Federal Employment Agency to that extent.
Application for dissolution and court-ordered severance pay
If the dismissal is invalid but continuing the employment relationship is unreasonable, the court may, on application, dissolve the employment relationship against payment of severance (§§ 9, 10 KSchG). The severance amounts to up to twelve months’ earnings, or up to 15 or 18 months’ earnings for older employees with long service. The application for dissolution is a demanding instrument and should be well substantiated.
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.
Claim filed on the last day of the deadline
Situation: A sales representative contacts us on a Thursday about a notice of dismissal that he found in his letterbox on the Thursday three weeks earlier. He had been on holiday and only read his post later.
Legal assessment and approach: What counts is when the letter was delivered, not when it was read. The deadline therefore expires that same day. The claim is filed electronically that afternoon and is received in time. Had he only called the following day, the only remaining option would have been late admission – which regularly fails where the reason is a holiday.
Settlement at the conciliation hearing
Situation: A bookkeeper with nine years of service is dismissed for operational reasons. The social selection is obviously flawed, because a younger colleague without children is kept on.
Legal assessment and approach: At the conciliation hearing, the court points out its doubts about the social selection. The parties agree on termination at the end of the notice period, paid garden leave, severance pay above the rule of thumb and an employment reference with the grade “very good”.
Default of acceptance as negotiating pressure
Situation: An employer refuses to pay any severance. Due to postponed hearings, the proceedings drag on for over nine months. The claimant can prove that he is applying for jobs, but initially does not find a new position.
Legal assessment and approach: With every month, the employer’s risk of having to pay back salary increases. Shortly before the main hearing, the employer offers a settlement of its own accord that is significantly higher than its original offer.
Further dismissal during the proceedings
Situation: While a claim is pending, the employer issues a second, “precautionary” dismissal.
Legal assessment and approach: The second dismissal must also be challenged within three weeks. If a general application for a declaratory judgment was made, the new dismissal can be included in the pending proceedings. Nevertheless, it is advisable to challenge it expressly within the deadline.
Frequently asked questions
Do I need a lawyer for an unfair dismissal claim?
There is no requirement to be represented by a lawyer at first instance; you can also have the claim recorded at the Labour Court’s legal applications office (Rechtsantragstelle). Because of the deadlines, the allocation of the burden of proof and the negotiations on severance pay and employment reference, however, representation by a lawyer is almost always advisable. Before the Regional Labour Court, representation is mandatory.
How long does an unfair dismissal claim take?
The conciliation hearing usually takes place within a few weeks. If the case goes to a main hearing, the first-instance proceedings often take several months, depending on the court’s workload.
Do I have to attend the conciliation hearing in person?
The court often orders the parties to appear in person. If so, you should attend or have an application for exemption made in good time. We will prepare you for the hearing.
Can I continue working at the company after filing a claim?
Until the notice period expires, the employment relationship continues in any case. After that, continued employment is possible if the works council (Betriebsrat) objected to the dismissal (§ 102 Abs. 5 BetrVG) or if you win at first instance.
Do I automatically receive severance pay if I win the case?
No. If you win, your employment relationship continues. Severance pay is only available through a settlement or on an application for dissolution under §§ 9, 10 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