Termination of Contract Law of Germany

Written by adelaide damoah
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Termination of Contract Law of Germany
Termination laws in Germany provide employees with protection from unfair dismissal. (contract 20309 image by pablo from Fotolia.com)

According to the Wilmerhale law firm, labour laws in Germany are intensely regulated. The firm goes on to state that labour laws in Germany are heavily "biased in favour of employees." The code which governs termination of contracts in Germany provides employees with optimal protection from unfair dismissal.

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The German Termination Protection Act details how and why an employer may dismiss an employee. The act only applies if the company employs more than five people. The employer may only dismiss an employee for a particular reason. Particular reasons include the personal situation of an employee, the behaviour of an employee or the situation of the business.


Notice periods must be observed according to the law and are usually between four weeks and seven months depending on how long you have been employed. Notice must be given in writing. Oral dismissal is void and must be put into writing. Dismissal can only begin at the end of any given calendar month, so this must be taken into consideration when giving notice to the employee. Retirement age is currently 65-years-old.


Special protection from dismissal laws apply to those who are pregnant, on three years maternity leave or who are legally recognised as disabled. Special permission must be granted by German authorities in exceptional and unusual cases.

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