Navigating Termination and Notice Periods in Germany: An HR Perspective

German employment law presents a structured framework for termination procedures that balances employer flexibility with robust employee protections. The German Civil Code (BGB) and Dismissal Protection Act (Kündigungsschutzgesetz) establish clear guidelines that international HR professionals must understand when managing German workforce transitions.

Legal Grounds for Termination in Germany

Terminations in Germany require valid justification under three primary categories: personal reasons (such as prolonged illness or capability issues), behavioral concerns (including performance deficiencies or misconduct), and operational necessities (like restructuring or economic challenges). Following the initial six-month employment period, employees gain enhanced protection under German dismissal laws, requiring employers to demonstrate proper cause and procedural compliance.

Understanding German Notice Period Requirements

Notice periods in Germany follow a graduated system based on employment duration, with specific calendar-based timing requirements. The statutory framework ensures predictability while accommodating both employer and employee needs during workforce transitions.

Employment Duration	Notice Period	Effective Date
First 6 months (probation)	2 weeks	2 weeks after notice delivery
Up to 2 years	4 weeks	15th or end of calendar month
2-5 years	1 month	End of calendar month
5-8 years	2 months	End of calendar month
8-10 years	3 months	End of calendar month
10-12 years	4 months	End of calendar month
12-15 years	5 months	End of calendar month
15-20 years	6 months	End of calendar month
20+ years	7 months	End of calendar month

Severance Pay Considerations

While German law doesn't mandate severance payments for standard terminations, practical considerations often lead to negotiated settlements. Common industry practice suggests approximately half a month's salary per year of service, though this can vary significantly based on circumstances. For executive-level terminations, statutory caps apply—typically 12 months' salary, increasing to 15 months for employees over 50 with 15 years' service, and up to 18 months for those over 55 with 20 years' tenure.

Protected Employee Categories

German law provides enhanced protection for specific employee groups, including pregnant employees, new mothers (within four months post-delivery), parental leave takers, severely disabled workers, works council members, and data protection officers. Terminating these employees requires particularly careful adherence to procedural requirements and often necessitates prior approval from relevant authorities.

Termination Process Overview

The German termination process involves several critical steps:

Establish valid termination grounds with documented evidence
Provide written notice following statutory timing requirements
Consult with works council where applicable
Continue salary payments during notice period
Consider severance negotiations for mutually agreeable separations

Unemployment Benefits Framework

Germany's unemployment insurance system (Arbeitslosengeld) provides support for eligible workers transitioning between positions. Qualification requires registration as a job seeker and at least 12 months of insurance contributions within the preceding 30 months. Both German nationals and legally resident foreigners may access these benefits under equal conditions, though application timing requirements are strict—employees must register within three months of learning about impending unemployment.

Practical HR Considerations

International companies operating in Germany should establish clear termination protocols that respect local legal requirements while maintaining operational flexibility. SailGlobal's expertise in German employment law can help organizations navigate complex termination scenarios, ensuring compliance while minimizing legal risks. Proper documentation, timely communication, and understanding cultural expectations around employment transitions are essential for successful HR management in the German market.

German Termination Laws: Notice Periods, Severance & Employment Compliance