Dismissing an employee in Germany after the probation period is very difficult. German employment law protects employees through the Protection Against Dismissal Act (Kündigungsschutzgesetz, KSchG), which requires strict procedures and justification.

Scope of the KSchG and small businesses (Kleinbetrieb)

The KSchG protects employees who have worked for the company for more than six months if it regularly employs more than 10 permanent staff (part-time employees are counted pro rata). In small businesses with up to 10 employees, KSchG protection does not apply, but a dismissal must not be discriminatory or contrary to public policy.

The three lawful grounds for dismissal

Where the KSchG applies, an employer may only dismiss for three socially justified reasons: operational reasons (betriebsbedingt – closing a department or a fall in orders, with a social selection, Sozialauswahl); personal reasons (personenbedingt – long-term illness with no prospect of recovery); and conduct-related reasons (verhaltensbedingt – repeated breaches of duty).

The role of the written warning (Abmahnung)

A dismissal for misconduct must generally be preceded by a warning (Abmahnung); it can only be skipped for particularly serious breaches. It is given in writing so that it can be proven. In it, the employer records the specific misconduct (date, time, details), states that such behaviour is unacceptable and explicitly says that a repetition will lead to termination of the employment contract.

Paper form only and a three-week deadline for legal action

A notice of dismissal (Kündigung) is only valid on paper with an original signature (Section 623 BGB); dismissal by email, fax or messenger is legally void. The employee can challenge the dismissal at the labour court (Arbeitsgericht) within three weeks of receiving the letter.

What to check

  • Check whether the KSchG applies based on your actual headcount.
  • Issue a reasoned written warning (Abmahnung) for misconduct.
  • Hand over the notice of dismissal on paper against a signature or by courier with a record of delivery.
  • Observe the statutory or contractual notice period (Kündigungsfrist).

Example situation

A manager gave an employee two written warnings for missing project deadlines, which allowed the company to prove that the dismissal was justified in later proceedings.

Next step

Dismissing an employee in Germany requires careful documentation, written form and respect for every stage of the employee's protection.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.