Termination of Employment in Germany: What Expats Need to Know

If you are an expat living or moving to Germany, understanding your rights and entitlements when it comes to termination of employment is important. German employment law provides significant protection for employees, including strict rules and regulations regarding dismissal. In this article, we'll take a closer look at termination of employment in Germany and what expats need to know.

Notice Periods

In Germany, both employers and employees are required to give notice before terminating a contract. The length of the notice period is determined by the length of employment, with a minimum notice period of four weeks for employees who have been employed for less than two years.

For employees who have been employed for longer than two years, the notice period increases gradually to a maximum of seven months for employees who have been employed for more than 20 years. Notice periods are an important aspect of termination of employment in Germany and must be adhered to by both parties.

Protection Against Unfair Dismissal

In Germany, employment protection laws regulate termination of employment. Employers are only allowed to terminate an employee's contract for specific reasons, such as conduct or performance issues or if the company is experiencing financial difficulties.

Additionally, pregnant women and women on maternity leave are protected against dismissal in Germany, except in cases of gross misconduct. Employees who are members of a works council or a trade union also have additional protection against dismissal.

If an employee believes that their dismissal was unfair, they can challenge the decision in court. Unfair dismissal claims can be made within three weeks of the termination of employment. If a court determines that the dismissal was unfair, the employee may be entitled to compensation or reinstatement.

Severance Payments

In some cases, employers may offer a severance payment as part of the termination of employment. Severance payments are not required by law but are often offered as a gesture of goodwill or to avoid legal disputes.

The amount of the severance payment is negotiable, but is usually based on the length of employment and the reason for termination. Severance payments in Germany are subject to income tax and social security contributions.

Protecting Yourself

As an expat living or moving to Germany, it's important to protect yourself in the event of termination of employment. Make sure that you understand your rights and entitlements under German employment law and seek advice from an experienced employment lawyer or consultant if you have any concerns.

Additionally, make sure that you have a good understanding of your employment contract, including any provisions related to notice periods and severance payments. If you have concerns about your contract, seek advice before signing.

Termination of Employment in Germany: Top 5 Questions Answered for Expats

1. Can my employer terminate my contract without a valid reason?

No, your employer must have a valid reason for terminating your contract in Germany, such as conduct or performance issues, or if the company is experiencing financial difficulties.

2. How much notice is required before terminating a contract in Germany?

The length of notice required is determined by the length of employment, with a minimum notice period of four weeks for employees who have been employed for less than two years.

3. Am I entitled to severance pay if my contract is terminated in Germany?

Severance pay is not required by law in Germany, but employers may offer it as a gesture of goodwill or to avoid legal disputes.

4. What protections do I have as a pregnant woman or a woman on maternity leave in Germany?

Pregnant women and women on maternity leave are protected against dismissal in Germany, except in cases of gross misconduct.

5. How can I challenge an unfair dismissal in Germany?

If you believe that your dismissal was unfair, you can challenge the decision in court within three weeks of the termination of employment. If the court determines that the dismissal was unfair, you may be entitled to compensation or reinstatement.

Conclusion

Termination of employment in Germany is regulated by strict laws and regulations, providing significant protection for employees. As an expat living or moving to Germany, it's important to understand your rights and entitlements when it comes to termination of employment.

By following this guide, expats can ensure that they receive the benefits and protections that they are entitled to. If you have any questions or concerns about termination of employment in Germany, it's recommended that you seek advice from an experienced employment lawyer or consultant.