Cancellation received - what to do?
Received a notice of termination – what should you do? Your rights and next steps
Most employees are caught off guard by a notice of termination. In this situation, one thing matters above all else: acting quickly and correctly. This is because German employment law sets strict deadlines – in particular the three-week deadline for bringing an action for unfair dismissal. As specialist employment lawyers in Augsburg, we see every day how employees lose valuable rights because they react too late. On this page, you will find a step-by-step guide on what you should do after receiving a notice of dismissal, what rights you are entitled to, and when it makes sense to take legal action.
The first 48 hours after being made redundant – what matters now
The period immediately following receipt of a notice of termination is crucial. Many employees react emotionally – understandably so. But it is precisely at this point that a cool head and swift action are required.
Immediately: Check the notice of termination, do not sign anything
Read the notice of termination carefully. Check whether it bears the handwritten signature of the employer or an authorised representative. Under Section 623 of the German Civil Code (BGB), a notice of dismissal is only valid in writing – emails, text messages or verbal dismissals are legally invalid. Do not sign any further documents such as termination agreements, settlement receipts or leave-of-absence agreements before a solicitor has reviewed them.
Within 3 days: Register with the Jobcentre
You are legally obliged to register as a jobseeker with the Jobcentre within three working days of receiving your notice of dismissal. You can also register online or by telephone. If you miss this deadline, you risk a one-week waiting period for unemployment benefit. This registration has no bearing on any potential legal action against the dismissal.
Within 3 weeks: Consider bringing an action for unfair dismissal
The most important deadline in the entire field of unfair dismissal law: an unfair dismissal claim must be filed with the relevant employment tribunal within three weeks of receiving the notice of dismissal (Section 4 of the Unfair Dismissal Protection Act). If this deadline is missed, the dismissal is deemed to have been valid from the outset – even if it was clearly unlawful. In Augsburg, the Augsburg Employment Tribunal at Frohsinnstraße 2 has jurisdiction.
When is a notice of termination invalid?
Not every dismissal issued by an employer is legally valid. German employment law sets high standards for the validity of a dismissal. In our practice, we find that a significant proportion of dismissals are open to challenge.
Does the Unfair Dismissal Protection Act apply to you?
The Unfair Dismissal Protection Act (KSchG) offers the strongest protection for employees in Germany – but it does not apply to everyone. Two conditions must be met: the employment relationship must have existed for more than six months at the time of dismissal (Section 1(1) KSchG), and the business must regularly employ more than ten staff (Section 23(1) KSchG). Part-time staff are counted on a pro rata basis – those working up to 20 hours per week count as 0.5 employees, and up to 30 hours as 0.75. If both conditions are met, the employer must have a valid reason for dismissal.
Formal errors leading to invalidity
A notice of termination is invalid if the statutory requirement for written form under Section 623 of the German Civil Code (BGB) has not been met. The notice of termination must be signed by hand – a facsimile, a scanned signature or a stamp is not sufficient. Furthermore, a notice of termination issued by an unauthorised person may be invalid under Section 174 of the German Civil Code (BGB) if no power of attorney was attached.
Missing or insufficient grounds for termination
If the German Employment Protection Act (KSchG) applies, the dismissal must be socially justified. This means that the employer needs a recognised reason – operational, personal or behavioural. In the case of operational dismissals, a correct social selection process must also be carried out, taking into account criteria such as length of service, age, maintenance obligations and severe disability.
Special protection against dismissal
Certain groups of employees enjoy special protection against dismissal – regardless of the size of the business. Pregnant women and mothers are protected under the Maternity Protection Act (Section 17 MuSchG). Severely disabled employees may only be dismissed with the consent of the Integration Office. Works council members cannot be dismissed under ordinary procedure. Employees on parental leave also enjoy special protection. Dismissal without observing these protective provisions is generally void.
Protection even without the Protection Against Dismissal Act
Even if the KSchG does not apply, you are not without protection. The dismissal must not breach the principle of good faith (Section 242 BGB), must not be contrary to public policy (Section 138 BGB) and must not be discriminatory within the meaning of the General Equal Treatment Act (AGG). Furthermore, the notice period under Section 622 BGB must always be observed.
Failure to consult the works council
If there is a works council in the company, it must be duly consulted prior to any dismissal in accordance with Section 102 of the Works Constitution Act (BetrVG). If the consultation is omitted or carried out incorrectly, the dismissal is invalid for that reason alone – regardless of whether there were grounds for dismissal.
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Employment Protection Check: Are you entitled to protection?
Answer five short questions to find out whether you are protected against unfair dismissal and how urgently you need to act. This assessment is not a substitute for legal advice, but it will give you an initial idea of the situation.
When did you receive the cancellation?
This is important in order to calculate the time limit for a complaint.
Action for unfair dismissal – procedure, costs and chances of success
An action for unfair dismissal is the key legal remedy available to employees to challenge an unlawful dismissal. It is brought before the relevant employment tribunal with the aim of having the dismissal declared invalid.
How does a dismissal protection case proceed?
Once the claim has been filed, the Employment Court will promptly schedule a conciliation hearing – usually within two to three weeks. At this hearing, the court attempts to reach an amicable settlement between the parties. The majority of cases are resolved at this stage through a settlement, which often involves a severance payment.
If no agreement is reached, a hearing before the full bench follows. Here, three judges – one professional judge and two lay judges – hear the case. At the Augsburg Labour Court, the time taken until the hearing before the full bench is usually three to six months. An appeal to the Munich Regional Labour Court is possible, but this significantly prolongs the proceedings.
How much does an unfair dismissal claim cost?
In first-instance labour court proceedings, each party bears its own legal costs – even if it wins. Legal fees are determined in accordance with the Lawyers’ Fees Act (RVG) and the so-called value of the claim, which is generally three gross monthly salaries. For a gross salary of €3,500, the costs typically range between €1,500 and €2,500.
If you have legal expenses insurance that covers employment law, this will usually cover the full costs after deduction of any excess. Employees on low incomes may be eligible to apply for legal aid. We will be happy to clarify the cost coverage with you during our initial consultation.
Severance pay upon redundancy – what are you entitled to?
One of the most common questions we hear as employment lawyers is: “Am I entitled to a severance payment?” The answer requires a nuanced assessment, as there is no general legal entitlement to a severance payment in Germany.
When is severance pay paid?
In practice, severance payments are typically made in three main scenarios: firstly, as part of a court-mediated settlement in a claim for unfair dismissal – this is the most common scenario. Secondly, when the employer offers a severance payment under Section 1a of the German Unfair Dismissal Protection Act (KSchG) as an alternative to legal action. Thirdly, as part of a redundancy plan during large-scale redundancies.
The employee’s negotiating position is a key factor in determining the amount of the severance payment. The weaker the employer’s grounds for dismissal, the higher the severance payment is usually. This is precisely why professional legal representation is crucial.
How much is a severance payment typically worth?
As a rule of thumb, the figure is 0.5 to 1.0 times the gross monthly salary per year of service. For a gross monthly salary of €4,000 and ten years’ service, the range is therefore between €20,000 and €40,000. The actual amount depends on numerous factors – including the prospects of success of the claim, the employer’s financial situation and the employee’s personal circumstances. With a well-founded legal strategy, the chances of securing a fair severance payment can be significantly improved.
Frequently asked questions about termination
This information does not constitute legal advice in individual cases.
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