You receive a termination letter and immediately wonder whether the employer can simply end the relationship. In Germany the answer depends heavily on the Kündigungsschutzgesetz (KSchG). When its conditions are met, an ordinary dismissal is valid only if it is socially justified. Understanding the thresholds, the three accepted grounds, and the tight lawsuit deadline gives both employees and employers a realistic picture of their position.

When the General Dismissal Protection Applies

Two requirements must be fulfilled at the moment the notice reaches the employee. First, the employment relationship must have existed without interruption for more than six months in the same establishment or company. Exactly six months is not enough. Second, the establishment must regularly employ more than ten employees. Part-time staff are counted proportionally: up to 20 hours per week count as 0.5, more than 20 up to 30 hours count as 0.75, and more than 30 hours count as 1.0. Apprentices are excluded from this calculation.

If either condition is missing, the general protection of the KSchG does not apply and the employer may terminate with ordinary notice without needing a specific social justification (subject still to other limits such as discrimination law or special protection).

The Three Grounds for Socially Justified Dismissal

Once the KSchG applies, an ordinary dismissal must rest on one of three reasons.

Person-related reasons concern the employee’s person without culpable conduct—most often long-term or frequent illness that creates a serious operational disruption and cannot be reasonably accommodated. Conduct-related reasons require a breach of contractual duties. In most cases a prior written warning is necessary so the employee has a chance to change the behavior. Operational reasons arise when the job itself disappears because of internal or external business decisions, such as restructuring or loss of orders. In that situation the employer must also carry out a proper social selection among comparable employees, taking into account length of service, age, maintenance obligations, and severe disability.

Special Protection for Certain Groups

Independent of the general KSchG thresholds, several groups enjoy stronger protection. Pregnant employees and those on parental leave, severely disabled employees (and those with equivalent status), works-council members, and certain other office holders can be dismissed only under narrow conditions and often only with prior approval from a public authority. These special regimes can make an otherwise possible dismissal invalid.

The Three-Week Deadline for a Dismissal Protection Lawsuit

If you want to challenge an ordinary dismissal under the KSchG, you must file a lawsuit at the labor court within three weeks of receiving the written notice. Missing this deadline usually makes the dismissal final, even if it would otherwise have been socially unjustified. The short period is one of the most important practical rules in German employment law. Employees who receive a termination should therefore seek advice immediately and calendar the three-week limit.

Notice Periods and Formal Requirements

Even when the KSchG applies, the employer must still observe the statutory or contractual notice period and the written-form requirement. Oral or email terminations are invalid. The notice period under the Civil Code starts at four weeks and lengthens with the employee’s length of service; collective agreements or individual contracts may set different periods.

Practical Steps for Employees and Employers

Employees who receive a termination should check the six-month and ten-employee thresholds, examine whether a social justification is stated or apparent, and contact a lawyer or trade union quickly enough to meet the three-week filing deadline. Collecting the employment contract, any warnings, performance records, and the termination letter itself helps the assessment.

Employers should verify the headcount calculation carefully, document the social justification thoroughly, and, in operational dismissals, perform and record a proper social selection. When special protection may apply, the required approvals must be obtained before the notice is issued. Hypothetical example: a company with twelve full-time equivalent employees terminates a worker after seven months of service for alleged repeated lateness. Without a prior warning and clear documentation, a labor court is likely to find the dismissal socially unjustified if a timely lawsuit is filed.

The Kündigungsschutzgesetz does not make dismissal impossible, yet it raises the bar significantly once the six-month and more-than-ten-employee thresholds are crossed. Ordinary termination then requires a recognized social justification, and employees have only three weeks to challenge the notice in court. Both sides benefit from knowing these rules in advance. Employees protect their position by acting within the deadline; employers reduce risk by documenting reasons carefully and respecting special protection regimes. If a termination has been issued or is under consideration, review the exact thresholds, the stated grounds, and the calendar immediately so that rights and obligations are handled while there is still time to act.

FAQ

When does the Kündigungsschutzgesetz apply?
When the employment has lasted more than six months and the establishment regularly employs more than ten employees (part-time staff counted proportionally).

What reasons can justify an ordinary dismissal under the KSchG?
Person-related, conduct-related, or operational reasons. The dismissal must be socially justified in the individual case.

How long do I have to file a dismissal protection lawsuit?
Three weeks from receipt of the written termination notice. Missing the deadline usually makes the dismissal final.

Do small businesses have to follow the KSchG?
Not the general protection if they regularly employ ten or fewer employees. Special protection rules for certain groups can still apply.

Is a prior warning always required?
For most conduct-related dismissals, yes. The employee must normally have been warned and given a chance to change the behavior.