Germany: Unfair/ Wrongful Dismissal

The German Federal Labour Court examines whether minor errors in mass dismissal notifications automatically invalidate terminations, providing crucial guidance for employers navigating collective redundancy procedures. This commentary analyzes the court's June 25, 2026 ruling and its implications for employment law practice.

Germany's proposed employment law reform would allow employers to terminate high earners earning above EUR 177,450 annually in exchange for court-determined severance, even after losing unfair dismissal litigation.

Germany's coalition government has proposed sweeping reforms to employment law that could fundamentally reshape fixed-term contracts, dismissal protection, co-determination rights, and sick leave reporting. The measures aim to strengthen Germany's competitiveness amid technological change, demographic pressure, and international competition, offering employers significantly expanded flexibility while tightening certain compliance requirements.

In our last issue of this year's Focus on Labour Law you will find the usual overview of the most important labour court decisions of recent months...

Dismissals due to plant closure may remain effective even if the plant is sold later – the importance of a list of impacted employees ("Namensliste").

Professional e-sports players are usually employees - but what protection do they have? Do forms of ordinary and extraordinary dismissals also exist in e-sports? What rules apply here?

The requirements and objectives of short-time work and redundancies for operational reasons are divergent.

For many companies, staff cuts are unavoidable during the Corona crisis, when short-time work and government protective shielding measures are no longer sufficient.

Employers generally have no control over their employees' compliance with health measures outside of work. Does this hold true during the ongoing pandemic?