Does the reason for termination have to be stated in the termination letter?

Many employees are irritated when they receive a termination letter without any explanation. But is this permissible? The answer depends on who is issuing the termination and the type of termination.

Ordinary termination under employment law – What employers should know

In German labor law, the following applies to ordinary termination:
Employers can terminate an employment relationship by observing the statutory or contractually agreed notice period – and do not have to state a reason for termination in the letter itself.

It must be distinguished from extraordinary (immediate) termination, which is only considered in the case of serious breaches of duty and terminates the employment relationship immediately.

Important: Even ordinary terminations are subject to legal limitations. The Dismissal Protection Act (KSchG) protects many employees from socially unjustified dismissals – for example, if there is no comprehensible reason for termination or if formal errors have been made.

Our experienced employment law attorneys can provide expert support with questions regarding ordinary termination, protection against dismissal, severance pay, and continued employment. Get a free initial assessment now – we'll enforce your rights.

Protection against dismissal and social justification – When a dismissal can be ineffective

Even though a letter of termination in Germany does not have to contain a reason, this does not mean that every termination is legally effective.

The Dismissal Protection Act (KSchG) protects employees from unjustified dismissals – provided the employment relationship lasts longer than six months and the employer regularly employs more than ten employees.

In these cases, dismissal is only permissible if it is socially justified. The employer must provide plausible evidence that one of the following reasons applies:

• Dismissal for operational reasons: e.g. due to job cuts, restructuring or relocation of tasks
• Termination for personal reasons: for example, in the case of permanent illness or lack of qualifications
• Dismissal for misconduct: in the event of repeated misconduct or breaches of contractual obligations

If such a reason for termination is missing – or the justification is insufficient – the termination may be ineffective.

Our employment lawyers will carefully examine whether your dismissal is socially justified and represent you in unfair dismissal claims, severance pay negotiations, or disputes over continued employment. Get your free initial assessment now – we'll fight for your rights.

Extraordinary (immediate) termination – What employers and employees should consider

Extraordinary termination—often referred to as termination without notice—is only permitted under labor law in exceptional cases. Unlike ordinary termination, the employment relationship ends immediately, without observing a notice period.

The prerequisite is an important reason within the meaning of Section 626 of the German Civil Code (BGB). This means that the person terminating the employment contract—whether employer or employee—cannot reasonably be expected to continue the employment relationship until the end of the regular notice period.

Typical reasons for termination without notice include:

• Grand theft or fraud
• Gross breaches of duty (e.g. persistent refusal to work, physical attacks, serious insults)
• Breach of trust or disclosure of secrets
• Significant disruption of industrial peace
  

Dismissal without notice is legally tricky – and often contestable. Our employment lawyers will examine whether there is a valid reason, whether all formal requirements have been met, and whether a wrongful termination lawsuit has a chance of success. Let us assess your situation now.

Dismissal before the Labour Court – How the reason for dismissal is examined

If you have doubts about the legality of a termination, you can have it reviewed by a court.

In the context of a wrongful termination lawsuit, the labor court examines whether the termination complies with legal requirements—in particular, whether, in the case of a regular termination, there is a socially justified reason under the Protection Against Dismissal Act (KSchG) or, in the case of a termination without notice, whether there is good cause. If the employer cannot convincingly explain or prove the reason for termination, the court will declare the termination invalid. In this case, the employment relationship will continue—or a severance payment will be negotiated.

Our experienced employment law attorneys will represent you in unfair dismissal proceedings – with the goal of securing your continued employment or obtaining a fair severance package. Contact us now and receive a free initial assessment.

Termination of collective agreements and special regulations – What you should know

Not every termination is based exclusively on general legal requirements. Often, additional Collective agreements, works agreements or special employment contractswhich provide their own regulations.

These may include, for example, special notice periods, extended termination rights or additional protection against dismissal – for example in public service, in care, in crafts or in industry.

Before making a legal assessment, it is therefore essential to to carefully examine the contractual and collective bargaining basesThis is particularly relevant for:

• Dismissals in collective bargaining companies
• Industry-specific special regulations
• Contractual clauses with different notice periods or reasons

Our employment law attorneys analyze your contract and collective agreement terms in detail and represent you competently in terminations, unfair dismissal claims, or severance pay negotiations.

Request an initial legal assessment now – we will examine whether your termination is legally valid.