Dismissal Protection in Germany 2025

The Kuendigungsschutzgesetz (KSchG) protects employees from socially unjustified dismissals. It requires the employer, when issuing an ordinary termination, to demonstrate a recognised ground for dismissal — either related to the person, to conduct, or to operational requirements (section 1(2) KSchG). Without such grounds, the dismissal is socially unjustified and therefore invalid.

Important: The KSchG does not automatically apply to all employment relationships. Two basic prerequisites must be met: the establishment must regularly employ more than 10 employees (section 23 KSchG), and the employment relationship must have existed for at least 6 months without interruption (section 1(1) KSchG). In small businesses and during the waiting period, employees enjoy only limited protection.

Both requirements must be met simultaneously for the Dismissal Protection Act to apply:

• Establishment size (section 23(1) KSchG): The establishment must regularly employ more than 10 employees. Part-time employees are counted proportionally: up to 20 hours/week = 0.5; up to 30 hours/week = 0.75; over 30 hours/week = 1.0. Trainees (Auszubildende) are not counted.
• Waiting period (section 1(1) KSchG): The employment relationship must have existed for at least 6 months without interruption at the time the notice of termination is given.
• Note on small businesses: In establishments with 10 or fewer employees, the KSchG does not apply. The employer may in principle terminate freely — but must observe the minimum level of social consideration (sections 242 and 138 of the Civil Code, BGB).

The KSchG distinguishes three recognised categories of grounds for termination:

• Person-related dismissal (personenbedingte Kuendigung): The employee can no longer perform their work due to personal characteristics — typically in cases of prolonged or frequent illness. A negative health prognosis and significant operational impairment are required. A prior warning is generally not necessary.
• Conduct-related dismissal (verhaltensbedingte Kuendigung): The employee culpably breaches their contractual duties. As a rule, a relevant prior warning must have been issued.
• Operationally-required dismissal (betriebsbedingte Kuendigung): Urgent operational needs necessitate the elimination of the position. The employer must carry out a social selection process (section 1(3) KSchG), taking into account length of service, age, maintenance obligations and severe disability.

Certain groups of individuals enjoy protection that goes beyond the general KSchG:

• Pregnancy and maternity protection (section 17 MuSchG): During pregnancy and up to four months after delivery, dismissal is generally prohibited.
• Parental leave (section 18 BEEG): During parental leave, special dismissal protection applies. Termination is only possible with the approval of the competent authority.
• Works council members (section 15 KSchG): During the term of office and for one year afterwards, ordinary dismissal is excluded.
• Severely disabled persons (section 168 SGB IX): Before issuing a termination, the employer must obtain the approval of the Integration Office (Integrationsamt).
• Data protection officers (section 38(2) in conjunction with section 6(4) BDSG): Special dismissal protection comparable to that of works council members.
• Military and voluntary service personnel: During service, dismissal is generally prohibited.

This is arguably the most important deadline in dismissal protection law: anyone wishing to challenge a dismissal must file an unfair dismissal claim (Kuendigungsschutzklage) with the labour court within three weeks of receiving the notice of termination. This deadline applies to both ordinary and extraordinary dismissals.

There is generally no statutory entitlement to severance pay. In practice, severance payments typically arise through: (1) an offer under section 1a KSchG in the case of an operationally-required dismissal with waiver of legal action, (2) a settlement in unfair dismissal proceedings, (3) judicial dissolution under sections 9 and 10 KSchG.

If you have received a notice of termination, the following steps may be helpful:

1. 1Stay calm and document receipt: Note the date you received the notice. The 3-week deadline starts from this date.
2. 2Review the termination: Check the written form (section 623 BGB), whether the signatory was authorised, and whether the works council was consulted (section 102 BetrVG).
3. 3Register as a job seeker immediately: Register with the Federal Employment Agency (Bundesagentur fuer Arbeit) as a job seeker within three days (section 38 SGB III).
4. 4Observe deadlines: The 3-week deadline is a preclusive period that cannot be extended.
5. 5Seek advice: Contact a specialist employment lawyer or a trade union's legal advice service.
6. 6Secure your documents: Keep your employment contract, termination notice, payslips and any prior warnings in a safe place.
7. 7Weigh your options: Unfair dismissal claim, negotiation or acceptance — the right option depends on the individual circumstances. RechtGuide does not provide legal advice under the Legal Services Act (RDG).

Frequently Asked Questions about Dismissal Protection

The 15 most important questions — answered clearly and concisely

Sources and Further Information

• Dismissal Protection Act (KSchG) — sections 1-25 (gesetze-im-internet.de)
• Section 622 BGB — Notice periods for employment relationships (gesetze-im-internet.de)
• Section 626 BGB — Extraordinary termination for serious cause (gesetze-im-internet.de)
• Section 102 BetrVG — Co-determination in dismissals (gesetze-im-internet.de)
• Federal Ministry of Justice — Information on employment law (bmj.de)
• Federal Employment Agency — Information sheet for employees (arbeitsagentur.de)