Job Termination Notice Period: What You Need to Know About German Employment Law

Understanding Notice Periods in German Employment Law

Job termination notice periods represent one of the most crucial aspects of German employment law, affecting millions of workers and employers across the country. Whether you’re an employee facing termination or an employer planning workforce changes, understanding these legal requirements is essential for protecting your rights and avoiding costly legal disputes.

The concept of notice periods serves as a buffer period that provides both parties time to adjust to the upcoming termination. For employees, this time allows for job searching and financial planning, while employers can use this period to find suitable replacements and ensure business continuity.

Legal Framework and Statutory Notice Periods

German employment law establishes clear statutory notice periods under Section 622 of the Civil Code (Bürgerliches Gesetzbuch – BGB). These periods are designed to balance the interests of both employers and employees while providing predictability and fairness in the termination process.

Standard Notice Periods by Length of Employment

The statutory notice periods increase progressively based on the duration of employment:

For employment relationships lasting less than 2 years: The basic notice period is 4 weeks to the 15th or end of a calendar month. This means termination must be declared either 4 weeks before the 15th of a month or 4 weeks before the end of a month.

For employment lasting 2 years or more: Notice periods extend significantly. After 2 years of employment, the notice period becomes 1 month to the end of a calendar month. This period continues to increase: after 5 years of employment, the notice period extends to 2 months to the end of a calendar month; after 8 years, it becomes 3 months; after 10 years, 4 months; after 12 years, 5 months; after 15 years, 6 months; and after 20 years of employment, the maximum notice period of 7 months to the end of a calendar month applies.

Probationary Period Exceptions

During the probationary period, which can last up to 6 months, different rules apply. Both employer and employee can terminate the employment relationship with just 2 weeks‘ notice to any day, providing much greater flexibility during this initial employment phase.

Notice Period Calculation and Timing

Calculating notice periods correctly is crucial for legal compliance. The calculation begins on the day following the receipt of the termination notice. For example, if an employee receives a termination notice on March 15th and has worked for 6 years, the 2-month notice period would run until May 31st, as the notice must be given to the end of a calendar month.

The timing of notice delivery is equally important. The termination notice must be delivered in writing and received by the other party during the notice period. Electronic delivery or verbal notice is generally insufficient for meeting legal requirements.

Weekend and Holiday Considerations

When calculating notice periods, weekends and public holidays are included in the count. The employment relationship ends on the agreed calendar day (typically the 15th or end of the month), even if this falls on a weekend or public holiday. Only the delivery of the termination notice itself is affected by weekend and holiday regulations under Section 193 BGB, which extends deadlines to the next working day when necessary.

Different Types of Termination and Their Notice Requirements

Ordinary Termination (Ordentliche Kündigung)

Ordinary termination follows the standard notice periods outlined above and represents the most common form of employment termination. This type of termination must comply with all statutory notice requirements and, for employees with more than 6 months of service in establishments with more than 10 full-time equivalent employees, must meet the requirements of the Employment Protection Act (Kündigungsschutzgesetz – Section 1, Section 23 KSchG).

Extraordinary Termination (Außerordentliche Kündigung)

Extraordinary termination, also known as immediate termination for cause, allows for the immediate end of the employment relationship without observing notice periods. However, this option is only available when there are serious grounds that make it unreasonable to continue the employment relationship, such as theft, serious breach of duties, or criminal behavior.

Termination by Mutual Agreement (Aufhebungsvertrag)

When both parties agree to end the employment relationship through a mutual termination agreement, they can deviate from statutory notice periods. Such agreements must be in writing and carefully negotiated to ensure both parties‘ interests are protected.

Practical Implications for Employees and Employers

For Employees

Understanding your notice period rights helps in career planning and financial preparation. Employees should review their employment contracts to understand whether longer notice periods have been agreed upon and should be aware that accepting severance payments might affect unemployment benefit eligibility.

During the notice period, employees generally remain entitled to full salary and benefits and must continue fulfilling their work obligations unless released from this duty by the employer. Employees are entitled to reasonable time off for job interviews during the notice period (in line with Section 629 BGB), but this generally requires employer consent or an explicit release from work duties.

For Employers

Employers must carefully plan terminations to ensure compliance with notice period requirements. Failure to provide adequate notice can result in claims for continuation of salary payments until the proper notice period expires.

Garden leave arrangements, where employees are relieved of work duties during the notice period while remaining employed, are increasingly common and can help protect business interests while fulfilling legal obligations.

International Employees and Special Considerations

Foreign employees, particularly those holding Blue Cards or other residence permits, face additional considerations during termination. Changes in employment status can affect residence rights, and we provide specialized English-language consulting for international professionals navigating these complex situations.

The intersection of employment law with immigration law requires careful consideration, as premature termination or incorrect notice periods can have far-reaching consequences for an individual’s right to remain in Germany.

Avoiding Common Pitfalls and Legal Disputes

Many termination disputes arise from misunderstandings about notice periods. Common mistakes include calculating notice periods incorrectly, failing to provide written notice as required by Section 623 BGB, or attempting to circumvent notice requirements through agreements that don’t adequately protect employee rights. It’s important to note that reductions to statutory minimum notice periods are only permissible in narrow legal exceptions: for temporary help contracts (maximum 3 months) or in small businesses with no more than 20 employees (with a minimum of 4 weeks‘ notice). Otherwise, statutory minimum periods must be observed, and no employee may be given a longer notice period than the employer.

Employers should ensure their HR departments are well-trained in notice period calculations and should seek legal advice when dealing with complex cases involving senior employees, protected groups, or international staff.

Actionable Checklist for Notice Period Management

For Employees:

• Verify your employment start date and calculate your applicable notice period
• Review your employment contract for any extended notice periods
• Understand your rights during the notice period
• Document any improper termination procedures
• Consider the impact on unemployment benefits and residence status

For Employers:

• Maintain accurate employment records for notice period calculations
• Establish clear procedures for termination notice delivery
• Train HR staff on proper notice period calculations
• Consider garden leave arrangements for sensitive positions
• Seek legal advice for complex termination cases

For Both Parties:

• Ensure all termination communications are in writing
• Understand the difference between ordinary and extraordinary termination
• Be aware of special protection periods and circumstances
• Consider mediation for disputed terminations