Labor law for employees

Your rights in the event of termination and protection against dismissal

Termination is a serious intervention in your employment relationship and always requires legal review. Not every termination is automatically lawful. German labour law distinguishes between ordinary and extraordinary terminations, both of which must meet different requirements. In the case of ordinary dismissals, the statutory or contractual notice periods must be observed, while extraordinary dismissals are only possible in the event of serious breaches of duty and must be pronounced within two weeks of becoming aware of the breach.

Employment protection applies in particular to employees who have been employed by the company for more than six months and work in companies with more than ten employees. In such cases, the employer must prove one of the three legal grounds for termination: operational, behavioural or personal reasons. Pregnant women, severely disabled persons, works council members and parents on parental leave are particularly protected. An action for unfair dismissal must be filed with the labour court within three weeks of receipt of the notice of termination.

Severance pay – your entitlements and options

Contrary to widespread belief, there is no automatic entitlement to severance pay in the event of termination. Severance pay is usually the result of negotiations between employer and employee, a termination agreement, a social plan or the provisions of Section 1a of the German Unfair Dismissal Protection Act (Kündigungsschutzgesetz). The latter applies if the employer terminates the employment relationship for operational reasons and the employee waives the right to bring an action for unfair dismissal.

The amount of the severance payment depends on various factors, in particular the length of service, the age of the employee and the amount of the salary. As a rule of thumb, 0.5 months' salary per year of employment applies. In practice, however, significantly higher severance payments can be negotiated, especially if the prospects of success in an action for unfair dismissal are good or if the employer wishes to terminate the employment relationship quickly.

Employment reference – your right to a fair assessment

Every employee is entitled to a reference upon termination of employment. A distinction is made between a simple reference, which only contains information on the type and duration of the employment, and a qualified reference, which also includes assessments of performance and conduct. The reference must be formulated in a favourable manner and must not impair the employee's future career prospects.

A poor or incorrect employment reference can have a significant impact on the employee's future career. Employees have the right to have their reference corrected if it contains incorrect facts or does not meet the legal requirements. The language used in references follows certain codes that are often difficult for laypeople to decipher. It is therefore advisable to have an employment reference checked by a legal expert before applying for other jobs.

Warning letter – Respond correctly and protect your rights

A warning letter is often the first step towards dismissal for misconduct and should therefore be taken seriously. It serves to document breaches of duty and is intended to give the employee the opportunity to change their behaviour. However, not every warning letter is lawful. It must be specific, justified and proportionate.

Employees have various options for taking action against an unjustified warning letter. They can write a counterstatement, which must be added to their personnel file, or demand that the warning letter be removed from the personnel file. In serious cases, legal clarification may also be necessary. A justified warning letter loses its effect after a certain period of time if the employee's behaviour has improved.

Termination agreement – weighing up the opportunities and risks

A termination agreement ends the employment relationship by mutual agreement between the employer and the employee. It offers various advantages: the employment relationship can be terminated immediately or at a specific point in time, lengthy dismissal protection proceedings are avoided, and a severance payment is often agreed upon. The employee saves face and can help shape the circumstances of the termination.

However, a termination agreement also carries considerable risks. The employment office usually imposes a twelve-week waiting period for unemployment benefits, as the employee has voluntarily terminated their employment relationship. In addition, the employee loses their protection against dismissal and can no longer take action against the termination. The contract is often complex and can be unfavourable for the employee. It is therefore essential to seek legal advice before signing.

Bullying in the workplace – your rights and options for action

Bullying in the workplace is a serious problem that can significantly affect the health and well-being of those affected. Legally, bullying is difficult to define, as it usually involves a variety of individual acts that, taken together, constitute bullying. It is important to carefully document all incidents, including the date, time, witnesses and a detailed description of what happened.

Those affected have various rights: they can complain to their employer, who is obliged to ensure a bullying-free working environment. If bullying is proven, claims for damages and compensation for pain and suffering may arise. In particularly serious cases, the bullied employee may even have the right to terminate their employment contract if continuing the employment relationship has become unreasonable. The employer may be liable for damages if they tolerate bullying or fail to take action against it.