{"id":5302,"date":"2026-10-04T21:52:34","date_gmt":"2026-10-04T19:52:34","guid":{"rendered":"https:\/\/bwlaw.de\/knowledge-base\/redundancy-in-germany\/"},"modified":"2026-10-22T17:28:41","modified_gmt":"2026-10-22T15:28:41","slug":"redundancy-in-germany","status":"publish","type":"page","link":"https:\/\/bwlaw.de\/en\/knowledge-base\/redundancy-in-germany\/","title":{"rendered":"Redundancy in Germany (betriebsbedingte K\u00fcndigung): when the dismissal is valid, severance pay and what to do"},"content":{"rendered":"\r\n<div id=\"progress\" aria-hidden=\"true\"><\/div>\r\n\r\n<header>\r\n  <div class=\"wrap\">\r\n    <a href=\"https:\/\/bwlaw.de\/en\/\" class=\"brand\" aria-label=\"BWLAW \u2013 home\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"BWLAW \u2013 law firm in Germany\" width=\"42\" height=\"28\"><\/a>\r\n    <nav aria-label=\"Main navigation\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Companies<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Employment law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/\">Cars<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\" class=\"active\">Knowledge base<\/a>\r\n    <\/nav>\r\n    <div class=\"lang\" role=\"group\" aria-label=\"Language\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/redundancy-in-germany\/\" class=\"active\" lang=\"en\" hreflang=\"en\" aria-current=\"true\">EN<\/a>\r\n      <a href=\"\/wissen\/betriebsbedingte-kuendigung-voraussetzungen\/\" lang=\"de\" hreflang=\"de\" aria-label=\"German version of this article\">DE<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/pl\/baza-wiedzy\/betriebsbedingte-kuendigung-w-niemczech\/\" lang=\"pl\" hreflang=\"pl\" aria-label=\"Polish version of this article\">PL<\/a>\r\n    <\/div>\r\n    <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/#kontakt\" class=\"btn\">Contact us <span class=\"arr\">\u2192<\/span><\/a>\r\n    <button class=\"burger\" aria-label=\"Menu\">\u2630<\/button>\r\n  <\/div>\r\n<\/header>\r\n\r\n<section class=\"shero\" style=\"padding-bottom:3.5rem\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\" style=\"grid-template-columns:1fr\">\r\n    <div>\r\n      <nav class=\"crumbs\" aria-label=\"Breadcrumb\"><a href=\"https:\/\/bwlaw.de\/en\/\">Home<\/a><span>\/<\/span><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><span>\/<\/span><b>Employment law<\/b><\/nav>\r\n      <a class=\"serie-pill serie-pill--kschg\" href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/dismissal-in-germany-what-to-do\/\" title=\"Go to the series guide\"><b>\u00a7<\/b><span>Series: Dismissal step by step<\/span><\/a>\r\n      <h1 style=\"max-width:34ch\">Redundancy in Germany (betriebsbedingte K\u00fcndigung): when the dismissal is valid, severance pay and what to do<\/h1>\r\n      <p class=\"lead\">A shortage of orders, a restructuring, a department closed down: in a redundancy dismissal (betriebsbedingte K\u00fcndigung) a German employer relies on \u201curgent operational requirements\u201d. The dismissal is only valid if the employer proves in the labour court that your job has genuinely and permanently disappeared, that no other vacant position in the company was available for you and that the choice of who to dismiss follows the rules on social selection. This article explains the requirements of section 1(2) and (3) of the Dismissal Protection Act (K\u00fcndigungsschutzgesetz, KSchG) under the case law of the Federal Labour Court (Bundesarbeitsgericht, BAG), the new 2026 rules on collective redundancy notifications, severance pay, unemployment benefit and what you must do within three weeks.<\/p>\r\n      <div class=\"art-meta\">\r\n        <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr Artur Barczewski\" width=\"46\" height=\"46\" loading=\"lazy\">\r\n        <div><b>Dr Artur Barczewski<\/b>niedergelassener europ\u00e4ischer Rechtsanwalt \/ Radca prawny<\/div>\r\n        <div style=\"margin-left:1rem;border-left:1px solid rgba(255,255,255,.25);padding-left:1rem\">\u2248 18 min read<br>updated: October 2026<\/div>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<article class=\"sec\">\r\n  <div class=\"wrap\">\r\n    <div class=\"prose rv\" 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span{display:block;font-size:.86rem;line-height:1.5;color:rgba(255,255,255,.8);hyphens:auto;overflow-wrap:break-word}.prose .bwprob__c--act{background:var(--terra,#C25531);border-color:var(--terra,#C25531)}.prose .bwprob__c--act span{color:#fff}.prose .bwprob__rule{margin:1rem 0 0;font-size:.84rem;color:rgba(255,255,255,.72);position:relative;z-index:1;line-height:1.5}.prose .bwprob__rule b{color:#fff}\r\n@media (max-width:640px){.prose .bwprob__cols,.prose .bwsum__steps{flex-direction:column}.prose .bwprob__cols li,.prose .bwsum__steps li{flex-direction:column}.prose .bwprob__cols li+li:before,.prose .bwsum__steps li+li:before{flex:0 0 18px;width:14px;height:18px;margin:4px auto;clip-path:polygon(35% 0,65% 0,65% 55%,100% 55%,50% 100%,0 55%,35% 55%)}}\r\n@media (max-width:560px){.prose .bwsum__grid,.prose .bwsum__grid--2,.prose .bwsum__cmp{grid-template-columns:1fr}.prose .bwsum__row{grid-template-columns:1fr}.prose .bwsum__bar{font-size:.66rem}.prose .bwprob__key{flex-direction:column;align-items:flex-start;gap:.4rem}.prose .bwsum__tbl thead{display:none}.prose .bwsum__tbl,.prose .bwsum__tbl tbody,.prose .bwsum__tbl tr,.prose .bwsum__tbl td{display:block;width:auto}.prose .bwsum__tbl tr{border-top:1px solid var(--line,#E5DED6);padding:.55rem .75rem}.prose .bwsum__tbl tr:first-child{border-top:0}.prose .bwsum__tbl td{border:0;padding:.08rem 0}.prose .bwsum__tbl td[data-l]:before{content:attr(data-l) \": \";font-weight:600;color:var(--ink-soft,#4A4642)}}\r\n<\/style>\r\n<figure class=\"bwprob\" aria-label=\"Redundancy dismissal: valid only if all four conditions are met\" style=\"margin-left:0;margin-right:0\"><p class=\"bwprob__eye\">The problem in one picture<\/p><p class=\"bwprob__t\">Redundancy dismissal: valid only if all four conditions are met<\/p><p class=\"bwprob__lead\">The employer must prove in the labour court that the job has permanently gone, no other position was vacant and the social selection is correct. The court only checks this if a claim is filed in time.<\/p><div class=\"bwprob__key\"><strong>3 weeks<\/strong><span>The time to file a dismissal protection claim, counted from receipt of the written dismissal (section 4 sentence 1 KSchG).<\/span><\/div><ol class=\"bwprob__cols\"><li><div class=\"bwprob__c\"><svg viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#E8946B\" stroke-width=\"1.8\" stroke-linecap=\"round\" stroke-linejoin=\"round\" aria-hidden=\"true\"><path d=\"M12 3 2.5 20h19z\"\/><path d=\"M12 10v4.5\"\/><circle cx=\"12\" cy=\"17.2\" r=\".6\" fill=\"#E8946B\"\/><\/svg><b>The risk<\/b><span>Once the deadline has passed, the dismissal is deemed valid from the outset, even if it was defective (section 7 KSchG).<\/span><\/div><\/li><li><div class=\"bwprob__c\"><svg viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#E8946B\" stroke-width=\"1.8\" stroke-linecap=\"round\" stroke-linejoin=\"round\" aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M15.5 8.6a4.2 4.2 0 1 0 0 6.8\"\/><path d=\"M7 10.8h6M7 13.2h6\"\/><\/svg><b>What it costs<\/b><span>A termination or settlement agreement without an important reason: generally a twelve-week suspension, and the benefit period shrinks by at least a quarter.<\/span><\/div><\/li><li><div class=\"bwprob__c bwprob__c--act\"><svg viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#fff\" stroke-width=\"1.9\" stroke-linecap=\"round\" stroke-linejoin=\"round\" aria-hidden=\"true\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"m7.8 12.3 2.8 2.8 5.6-5.8\"\/><\/svg><b>What to do<\/b><span>Note the deadline, check whether the letter offers severance under section 1a KSchG, secure rosters and job ads, sign nothing unchecked.<\/span><\/div><\/li><\/ol><p class=\"bwprob__rule\"><b>Rule of thumb:<\/b> if one condition is missing, the dismissal is void. But the court only checks this if the claim is filed in time.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What is a betriebsbedingte K\u00fcndigung (redundancy dismissal) in Germany?<\/h3>\r\n<p>A betriebsbedingte K\u00fcndigung is an ordinary dismissal by the employer based on urgent operational requirements that prevent the employee from being kept on (section 1(2) sentence 1 KSchG). The reason lies with the business, not with the employee: fewer orders, a department closed, work outsourced, automation or the closure of the whole establishment.<\/p>\r\n<p>German law recognises three grounds for an ordinary dismissal: reasons relating to the employee as a person (for example long-term illness), reasons relating to conduct (for example repeated breaches after a formal warning) and operational reasons. Only for operational reasons must the employer carry out a social selection, and only here can the dismissal letter offer the statutory severance payment under section 1a KSchG. Because the employee is not at fault, simply accepting a redundancy dismissal does not, as a rule, trigger a suspension of unemployment benefit.<\/p>\r\n<p>All requirements below apply only where the Dismissal Protection Act applies. That requires employment in the same establishment or company for more than six months (section 1(1) KSchG) in an establishment that regularly employs more than ten employees (section 23(1) KSchG). Part-timers count pro rata: up to 20 hours a week as 0.5, up to 30 hours as 0.75 (section 23(1) sentence 4 KSchG). The threshold of ten applies to employment that began after 31 December 2003. Employees hired earlier may already be protected in establishments with more than five employees if that many long-standing employees still work there (section 23(1) sentences 2 and 3 KSchG). Protection in small businesses is covered in a separate section below.<\/p>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">When is a redundancy dismissal in Germany valid?<\/h3>\r\n<p>A redundancy dismissal is valid only if four conditions are met at the same time: the employer has taken a business decision, implementing it removes the need for the employee\u2019s work permanently by the end of the notice period at the latest, there is no other vacant position for the employee in the company and the social selection is correct (section 1(2) and (3) KSchG). If one condition is missing, the dismissal is socially unjustified and void.<\/p>\r\n<p>The employer bears the burden of proving the operational requirements (section 1(2) sentence 4 KSchG). Buzzwords such as \u201cdrop in sales\u201d or \u201creorganisation\u201d are not enough. The employer has to explain, with figures and concrete measures, why precisely the claimant\u2019s job disappears. The employee can challenge each of the four conditions separately in court.<\/p>\r\n<p>The decisive moment is when the dismissal is received. At that point the forecast that the need for the employee\u2019s work will cease by the end of the notice period must already be objectively justified, and the developments leading to it must be settled (BAG, judgment of 31 July 2014, 2 AZR 422\/13, confirmed by BAG, judgment of 28 February 2023, 2 AZR 227\/22). A mere intention or a non-binding restructuring paper is not enough.<\/p>\r\n<p>Formal requirements that apply to every dismissal come on top: written form with a handwritten signature, so no e-mail or text message (section 623 of the Civil Code, BGB), consultation of the works council where one exists (section 102(1) of the Works Constitution Act, BetrVG), a collective redundancy notification where the thresholds of section 17 KSchG are reached and official approval where special protection applies, for example during pregnancy (section 17 of the Maternity Protection Act, MuSchG) or for severely disabled employees (section 168 of Social Code IX, SGB IX).<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Four conditions, all must be met\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Four conditions, all must be met<\/p><ol class=\"bwsum__steps\"><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">1<\/span><b>Business decision<\/b><span>The employer has actually decided, for example to close a department or outsource work.<\/span><span class=\"bwsum__p\">section 1(2) KSchG<\/span><\/div><\/li><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">2<\/span><b>Job disappears permanently<\/b><span>The need for the work ends by the end of the notice period at the latest. This must be settled when the dismissal is received.<\/span><\/div><\/li><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">3<\/span><b>No other vacant position<\/b><span>No vacant position anywhere in the company, including after retraining or on changed terms.<\/span><\/div><\/li><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">4<\/span><b>Correct social selection<\/b><span>The employee least in need of protection among comparable employees is dismissed.<\/span><span class=\"bwsum__p\">section 1(3) KSchG<\/span><\/div><\/li><\/ol><div class=\"bwsum__warn\"><b>Burden of proof on the employer:<\/b> buzzwords such as \u201cdrop in sales\u201d are not enough. It must explain with figures and concrete measures why precisely this job disappears (section 1(2) sentence 4 KSchG).<\/div><p class=\"bwsum__note\">Formal requirements come on top: written form with signature (section 623 BGB), consultation of the works council (section 102(1) BetrVG), collective redundancy notification (section 17 KSchG), official approval where special protection applies.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Does the labour court review the employer\u2019s decision to cut jobs?<\/h3>\r\n<p>The labour court does not review whether the decision to cut jobs made economic sense or was necessary. It only checks whether the decision was actually taken, whether implementing it really removes the need for the claimant\u2019s work and whether it is obviously unfounded, unreasonable or arbitrary (BAG, judgment of 28 February 2023, 2 AZR 227\/22). An employer may therefore cut jobs even when the business is not in crisis.<\/p>\r\n<p>This freedom follows from the freedom to conduct a business and the right to property under the German Basic Law (Article 12(1) and Article 14(1) GG). An employer may decide that an outside contractor will take over cleaning, accounting or logistics without having to prove that this saves money. In case 2 AZR 227\/22 the BAG also accepted the transfer of tasks to another company of the same group.<\/p>\r\n<p>Arbitrariness, however, has to be shown by the employee. The employee must put forward circumstances showing that the decision was obviously unfounded or only served to get rid of a particular person, and the court assesses these indications as a whole (BAG, 2 AZR 227\/22). An indication may be that the \u201crestructuring\u201d affected only one person who had recently been in dispute with the employer, while someone else carries on doing that person\u2019s tasks unchanged. The fact that other employees also lost their jobs, on the other hand, speaks against arbitrariness.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"The court reviews the implementation, not the sense of the decision\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">The court reviews the implementation, not the sense of the decision<\/p><div class=\"bwsum__cmp\"><div class=\"bwsum__col bwsum__col--neutral\"><b>Not reviewed by the court<\/b><ul><li>Whether the job cut made economic sense<\/li><li>Whether it was necessary: jobs may be cut even without a crisis<\/li><li>Whether outsourcing saves money<\/li><\/ul><\/div><div class=\"bwsum__col bwsum__col--good\"><b>Reviewed by the court<\/b><ul><li>Was the decision actually taken?<\/li><li>Does it really remove the need for the work?<\/li><li>Is it obviously unfounded, unreasonable or arbitrary?<\/li><\/ul><\/div><\/div><div class=\"bwsum__warn\"><b>Arbitrariness must be shown by the employee.<\/b> An indication: the \u201crestructuring\u201d affected only one person who had recently been in dispute with the employer, and someone else does their tasks.<\/div><p class=\"bwsum__note\">Source: BAG, judgment of 28 February 2023, 2 AZR 227\/22.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">When must the employer prove more than the abolition of the position?<\/h3>\r\n<p>Where the business decision essentially consists of abolishing one position and spreading its tasks among the remaining staff, the employer must show in detail that they can do the work without overtime and within their contractual working hours. The BAG describes this as a business decision that is practically identical with the decision to dismiss (BAG, judgment of 24 May 2012, 2 AZR 124\/11, and judgment of 23 February 2012, 2 AZR 548\/10).<\/p>\r\n<p>In this situation there is no longer a presumption that the decision is objectively justified. The employer must explain which tasks disappear, how much time they took, who takes over the rest and why this fits into the colleagues\u2019 contractual working time. Typical cases are the removal of a management level, the abolition of the only position in a department or the transfer of tasks to supervisors.<\/p>\r\n<p>For employees this is often the strongest argument in a dismissal case. If the remaining colleagues regularly work overtime after the dismissal, if the employer hires new people for similar tasks or if the claimant\u2019s tasks are still being done to the same extent, the forecast of a permanent loss of work collapses. Secure rosters, job advertisements and messages from former colleagues from day one.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Job abolished, work redistributed: what the employer must explain\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Job abolished, work redistributed: what the employer must explain<\/p><div class=\"bwsum__grid bwsum__grid--2\"><div class=\"bwsum__c\"><span class=\"bwsum__n\">1<\/span><b>What disappears?<\/b><span>Which tasks are dropped?<\/span><\/div><div class=\"bwsum__c\"><span class=\"bwsum__n\">2<\/span><b>How much time?<\/b><span>How much time did they take?<\/span><\/div><div class=\"bwsum__c\"><span class=\"bwsum__n\">3<\/span><b>Who takes over?<\/b><span>Who does the remaining tasks?<\/span><\/div><div class=\"bwsum__c\"><span class=\"bwsum__n\">4<\/span><b>Enough working time?<\/b><span>Why can colleagues do it without overtime within their contractual working hours?<\/span><\/div><\/div><div class=\"bwsum__warn\"><b>Often the strongest argument in court:<\/b> if colleagues regularly work overtime afterwards or the employer hires new people for similar tasks, the forecast collapses.<\/div><p class=\"bwsum__note\">Typical cases: removal of a management level or abolition of the only position in a department (BAG 2 AZR 124\/11). Secure rosters and job advertisements from day one.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Can my employer replace me with agency workers or a subcontractor?<\/h3>\r\n<p>Not if an agency worker (Leiharbeitnehmer) is to take your position and do the same work under the employer\u2019s instructions. That is an inadmissible replacement dismissal (Austauschk\u00fcndigung) and it is void (BAG, judgment of 24 January 2013, 2 AZR 140\/12). The employer is not removing the need for work, only swapping the person.<\/p>\r\n<p>Positions that the employer permanently fills with agency workers to cover a constant base volume of work may count as vacant positions that must first be offered to the permanent employee facing dismissal. It is different where agency workers only absorb order peaks or are kept as a staff reserve to stand in for absent permanent employees. According to the BAG, such positions are not vacant (judgment of 18 October 2012, 6 AZR 289\/11).<\/p>\r\n<p>Outsourcing tasks to an independent contractor that performs them on its own account is generally allowed (BAG, judgment of 28 February 2023, 2 AZR 227\/22). The limit is circumvention: if the \u201csubcontractor\u201d in practice works under the former employer\u2019s instructions and does the same work in the same establishment, the court may treat the dismissal as a disguised replacement dismissal.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Replaced by others: what is allowed and what is not\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Replaced by others: what is allowed and what is not<\/p><ul class=\"bwsum__amp\"><li class=\"g\"><i><\/i><div><b>Outsourcing to an independent contractor<\/b><span>Generally allowed if it performs the work on its own account (BAG 2 AZR 227\/22).<\/span><\/div><\/li><li class=\"y\"><i><\/i><div><b>Agency workers permanently covering a constant base volume<\/b><span>These may be vacant positions that must first be offered to the permanent employee facing dismissal.<\/span><\/div><\/li><li class=\"y\"><i><\/i><div><b>\u201cSubcontractor\u201d works under the employer\u2019s instructions<\/b><span>Same work in the same establishment: the court may treat it as a disguised replacement dismissal.<\/span><\/div><\/li><li class=\"r\"><i><\/i><div><b>Agency worker in your former position<\/b><span>Inadmissible replacement dismissal (Austauschk\u00fcndigung). The dismissal is void (BAG 2 AZR 140\/12).<\/span><\/div><\/li><\/ul><p class=\"bwsum__note\">Green: generally allowed. Yellow: the dismissal may fail. Red: the dismissal is void. Agency workers who only absorb order peaks or serve as a reserve do not create a vacant position (BAG 6 AZR 289\/11).<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What applies if the business closes or is sold?<\/h3>\r\n<p>Closing down the whole establishment justifies redundancy dismissals if, when the dismissals were received, the employer had made a serious and final decision to close and that decision had already taken tangible form, for example by terminating the lease, selling the machinery or no longer accepting orders. If the employer is still in serious negotiations to sell the business at that time, there is no decision to close and the dismissal is void (BAG, judgment of 16 February 2012, 8 AZR 693\/10).<\/p>\r\n<p>A sale is not a closure. If a buyer takes over the business or part of it while preserving its identity, the employment relationships pass to the buyer by law (section 613a(1) sentence 1 BGB), and a dismissal because of the transfer is void (section 613a(4) sentence 1 BGB). A dismissal for other reasons remains possible, for example because of job cuts under the buyer\u2019s own concept.<\/p>\r\n<p>When an establishment with a works council closes, employees are usually entitled to severance pay under a social plan (Sozialplan, section 112 BetrVG). This applies in companies that regularly employ more than 20 employees eligible to vote (section 111 sentence 1 BetrVG). If employer and works council cannot agree, a conciliation committee (Einigungsstelle) decides (section 112(4) BetrVG). Social plan payments may not be made conditional on the employee waiving a dismissal protection claim. An additional bonus for not suing is only possible in a separate voluntary works agreement (BAG, judgment of 31 May 2005, 1 AZR 254\/04).<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Closure and sale are two different things\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Closure and sale are two different things<\/p><div class=\"bwsum__cmp\"><div class=\"bwsum__col bwsum__col--neutral\"><b>Closure<\/b><ul><li>Serious and final decision when the dismissals are received<\/li><li>Already tangible: lease terminated, machinery sold, no new orders accepted<\/li><li>Still in serious sale negotiations: the dismissal is void (BAG 8 AZR 693\/10)<\/li><\/ul><\/div><div class=\"bwsum__col bwsum__col--neutral\"><b>Sale<\/b><ul><li>Employment relationships pass to the buyer by law (section 613a(1) sentence 1 BGB)<\/li><li>A dismissal because of the transfer is void (section 613a(4) sentence 1 BGB)<\/li><li>Dismissal for other reasons remains possible, for example under the buyer\u2019s own concept<\/li><\/ul><\/div><\/div><div class=\"bwsum__warn\">Social plan payments may not be made conditional on waiving a dismissal protection claim (BAG 1 AZR 254\/04).<\/div><p class=\"bwsum__note\">Where there is a works council, employees are usually entitled to social plan severance on closure (section 112 BetrVG), in companies regularly employing more than 20 employees eligible to vote.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Does the employer have to offer me another position?<\/h3>\r\n<p>Yes. A redundancy dismissal is void if the employee could continue working in another vacant position in the same or another establishment of the company, including after reasonable retraining or on changed terms (section 1(2) sentences 2 and 3 KSchG). The BAG derives this duty from the word \u201curgent\u201d in section 1(2) sentence 1 KSchG: termination must be the last resort (ultima ratio), so the employer has to offer continued employment on its own initiative before dismissing (BAG, judgment of 21 April 2005, 2 AZR 132\/04).<\/p>\r\n<p>A position is vacant if it is unoccupied when the dismissal is received or becomes free by the end of the notice period (BAG, judgment of 29 August 2013, 2 AZR 721\/12). The duty covers the employer\u2019s whole company with all its establishments (section 1(2) sentence 2 no. 1(b) KSchG), but as a rule not other companies of the same group. As a rule it does not extend to the employer\u2019s establishments abroad either (BAG, judgment of 29 August 2013, 2 AZR 809\/12). The BAG left open whether the same applies where a whole establishment or part of it is relocated abroad. The employer does not have to create a new position.<\/p>\r\n<p>The employer must also offer a lower-paid or part-time position before ending the employment altogether. Instead of a termination it must then issue a dismissal with an offer of altered terms (\u00c4nderungsk\u00fcndigung, section 2 KSchG). The offer may at most be omitted in extreme cases where it would be insulting, such as the porter\u2019s job for the former head of HR. Whether the worse terms are acceptable is for the employee to decide (BAG, judgment of 21 April 2005, 2 AZR 132\/04).<\/p>\r\n<p>In court the burden of presentation is staggered. If the employee only denies in general terms that there was no other work, a general statement by the employer suffices. If the employee names the specific position in which they could have worked, the employer must explain in detail why that was not possible (BAG, judgment of 25 October 2012, 2 AZR 552\/11). The employer\u2019s job advertisements from before and after the dismissal are therefore valuable evidence.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Which position the employer must offer before dismissing\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Which position the employer must offer before dismissing<\/p><table class=\"bwsum__tbl\"><thead><tr><th>Position<\/th><th>Offer it?<\/th><th>Note<\/th><\/tr><\/thead><tbody><tr><td>Vacant position in the same or another establishment of the company<\/td><td data-l=\"Offer it?\">Yes<\/td><td data-l=\"Note\">Also after reasonable retraining (section 1(2) sentences 2 and 3 KSchG)<\/td><\/tr><tr><td>Position that becomes free by the end of the notice period<\/td><td data-l=\"Offer it?\">Yes<\/td><td data-l=\"Note\">BAG 2 AZR 721\/12<\/td><\/tr><tr><td>Lower-paid or part-time position<\/td><td data-l=\"Offer it?\">Yes<\/td><td data-l=\"Note\">By a dismissal with an offer of altered terms (section 2 KSchG). The employee decides whether it is acceptable<\/td><\/tr><tr><td>Position in another group company<\/td><td data-l=\"Offer it?\">As a rule no<\/td><td data-l=\"Note\">The duty covers the employer\u2019s own company<\/td><\/tr><tr><td>Establishment abroad<\/td><td data-l=\"Offer it?\">As a rule no<\/td><td data-l=\"Note\">BAG 2 AZR 809\/12<\/td><\/tr><tr><td>New position yet to be created<\/td><td data-l=\"Offer it?\">No<\/td><td data-l=\"Note\">No duty to create a new position<\/td><\/tr><\/tbody><\/table><p class=\"bwsum__note\">In court: naming a specific position forces the employer to explain in detail (BAG 2 AZR 552\/11). The employer\u2019s job advertisements from before and after the dismissal are therefore valuable.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Who has to be dismissed? Social selection in brief<\/h3>\r\n<p>If only one of several comparable positions disappears, the employer cannot freely choose whom to dismiss. It must compare all interchangeable employees of the establishment by length of service, age, maintenance obligations and severe disability and dismiss the one least in need of protection (section 1(3) sentence 1 KSchG). An error in the social selection (Sozialauswahl) makes the dismissal void.<\/p>\r\n<p>At the employee\u2019s request, the employer must state the reasons for the selection (section 1(3) sentence 1, second half-sentence KSchG). It may exclude key performers from the selection if it gives concrete reasons for a legitimate business interest in keeping them (section 1(3) sentence 2 KSchG). The points system approved by the BAG, the comparison group and worked examples are covered in our article on <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/social-selection-germany-redundancy\/\">social selection in Germany<\/a>.<\/p>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What difference do a works council and a list of names make?<\/h3>\r\n<p>If there is a works council, the employer must consult it before every dismissal and tell it the reasons. A dismissal without consultation is void (section 102(1) BetrVG). For a redundancy dismissal this includes the employee\u2019s social data and the reasons for the selection.<\/p>\r\n<p>The works council may object in writing within one week, for example because the social selection is wrong or a vacant position exists (section 102(3) BetrVG). The objection does not stop the dismissal. However, if the employee files a dismissal protection claim, they can demand to be kept on unchanged terms until the case is finally decided (section 102(5) sentence 1 BetrVG). Only the labour court can release the employer from this duty by interim injunction.<\/p>\r\n<p>In the case of an operational change (Betriebs\u00e4nderung, section 111 BetrVG) employer and works council can name the employees to be dismissed in a reconciliation of interests (Interessenausgleich mit Namensliste). The law then presumes that the dismissal is caused by urgent operational requirements, and the court reviews the social selection only for gross errors (section 1(5) KSchG). The employee must prove the opposite, namely that the possibility of employment continues, and merely casting doubt on the presumption is not enough (BAG, judgment of 27 September 2012, 2 AZR 516\/11).<\/p>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">New in 2026: without a collective redundancy notification the dismissal is void<\/h3>\r\n<p>If an employer dismisses so many employees within 30 calendar days that the thresholds of section 17(1) KSchG are reached, it must first consult the works council and notify the collective redundancy (Massenentlassungsanzeige) to the Federal Employment Agency. Under the BAG judgments of 1 April 2026 a dismissal is void if no notification had been filed when it was issued (6 AZR 157\/22) or if the notification was filed before the consultation ended (6 AZR 152\/22). A later notification does not cure the defect (6 AZR 152\/22).<\/p>\r\n<p>The thresholds depend on the size of the establishment. Notification is required for dismissing more than 5 employees in establishments regularly employing more than 20 and fewer than 60, 10 % of the workforce or more than 25 employees in establishments with 60 to 499, and at least 30 employees in establishments with 500 or more (section 17(1) sentence 1 KSchG). Termination agreements initiated by the employer count as well (section 17(1) sentence 2 KSchG).<\/p>\r\n<p>The change follows two judgments of the Court of Justice of the European Union of 30 October 2025 (C-134\/24 and C-402\/24). Under them, a dismissal in a collective redundancy can only take effect after the 30-day period following a proper notification has expired, and a notification filed afterwards does not remedy the defect. The BAG now bases the invalidity on an interpretation of section 18(1) KSchG in line with Directive 98\/59\/EC instead of section 134 BGB as before. An employer who made a mistake has to repeat the whole procedure and dismiss again.<\/p>\r\n<p>For employees this means one practical question in any larger job cut: did the employer notify the collective redundancy, when did it do so and had the consultation with the works council ended before that? In court, ask for a copy of the notification and the Agency\u2019s confirmation of receipt. Whether every error in the content of the notification leads to invalidity is still open, the BAG expressly left this undecided.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Collective redundancy: consult first, then notify, then dismiss\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Collective redundancy: consult first, then notify, then dismiss<\/p><ol class=\"bwsum__steps\"><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">1<\/span><b>Consultation<\/b><span>Complete the consultation with the works council.<\/span><span class=\"bwsum__p\">section 17 KSchG<\/span><\/div><\/li><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">2<\/span><b>Notification<\/b><span>Notify the collective redundancy to the Federal Employment Agency, only after the consultation.<\/span><\/div><\/li><li><div class=\"bwsum__c\"><span class=\"bwsum__n\">3<\/span><b>Dismissal<\/b><span>Only now dismiss. Effect at the earliest 30 days after a proper notification.<\/span><span class=\"bwsum__p\">C-134\/24<\/span><\/div><\/li><\/ol><div class=\"bwsum__warn\"><b>New since the BAG judgments of 1 April 2026:<\/b> without a prior notification, or with a notification filed before the consultation ended, the dismissal is void. A later notification does not cure it (6 AZR 152\/22).<\/div><p class=\"bwsum__note\">Thresholds within 30 calendar days: more than 5 dismissals with more than 20 and fewer than 60 employees, 10 % or more than 25 with 60 to 499, at least 30 with 500 or more (section 17(1) sentence 1 KSchG).<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Can a small business dismiss for operational reasons without a reason?<\/h3>\r\n<p>In establishments that regularly employ no more than ten employees the Dismissal Protection Act does not apply. The employer need not prove urgent operational requirements or carry out a social selection under section 1(3) KSchG (section 23(1) KSchG). The employee is still not without protection: the dismissal must not be immoral or contrary to good faith (sections 138 and 242 BGB).<\/p>\r\n<p>The Federal Constitutional Court (Bundesverfassungsgericht, BVerfG) upheld the small-business exemption, subject to an interpretation in line with the constitution, partly because general clauses of civil law such as sections 138 and 242 BGB secure a minimum protection (BVerfG, order of 27 January 1998, 1 BvL 15\/87). When choosing between several employees, the court requires a certain degree of social consideration and regard for the trust built up through long service. Where the employer chooses between several employees, it must show a minimum of social consideration and may not dismiss the person clearly more in need of protection unless it has significant interests of its own in doing so, for example the employee with 20 years of service and three children instead of the colleague hired a year ago (BAG, judgment of 21 February 2001, 2 AZR 15\/00, and judgment of 28 October 2010, 2 AZR 392\/08). The small employer\u2019s freedom carries considerable weight, and the circumstances showing a breach of good faith must be proved by the employee.<\/p>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Am I entitled to severance pay after a redundancy dismissal in Germany?<\/h3>\r\n<p>There is no general right to severance pay (Abfindung) in Germany, not even after a redundancy dismissal. The law grants it only in specific cases: where the employer offers it in the dismissal letter under section 1a KSchG, under a social plan (section 112 BetrVG), as compensation where the employer departs from or does not attempt a reconciliation of interests in an operational change (section 113 BetrVG), or by a court order dissolving the employment (sections 9 and 10 KSchG). In practice, severance is usually agreed in a settlement before the labour court.<\/p>\r\n<p>Severance under section 1a KSchG amounts to 0.5 monthly earnings for each year of employment, with a period of more than six months rounded up to a full year. The employer must state in the dismissal letter that the dismissal is for operational reasons and that the employee will receive the severance if they let the deadline for a claim pass, and the employee must not sue within three weeks. Example: 8 years and 4 months of service, EUR 3,000 gross a month: 0.5 \u00d7 3,000 \u00d7 8 = EUR 12,000 gross. Filing a claim, even a late one, forfeits this entitlement (BAG, judgment of 13 December 2007, 2 AZR 971\/06).<\/p>\r\n<p>If the employer offers a different amount in the dismissal letter, the wording decides. A deviating offer must be unambiguous, because the employee has to know within the claim deadline what they are agreeing to (BAG, judgment of 10 July 2008, 2 AZR 209\/07). A much lower amount introduced with \u201cwe offer\u201d is then an ordinary contractual offer and not a claim under section 1a KSchG.<\/p>\r\n<p>In settlement negotiations the same formula is often the starting point: 0.5 gross monthly salaries per year of service. It is a negotiating benchmark, not a statutory rule or settled case law. The actual amount depends on the prospects of the claim: the weaker the grounds for dismissal, the higher the multiplier. When a settlement payment falls due is explained in our article on <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/severance-pay-germany-when-paid\/\">when severance pay is paid<\/a>, and tax is covered in <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/severance-pay-tax-germany\/\">severance pay tax in Germany<\/a>.<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Statutory severance: a fixed formula, but only without a claim\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Statutory severance: a fixed formula, but only without a claim<\/p><div class=\"bwsum__stats\"><div class=\"bwsum__stat\"><strong class=\"bwsum__num\">0.5<\/strong><span>monthly earnings for each year of employment, more than six months rounded up to a full year<\/span><\/div><div class=\"bwsum__stat\"><strong class=\"bwsum__num\">EUR 12,000<\/strong><span>example: 8 years and 4 months of service, EUR 3,000 gross a month<\/span><\/div><div class=\"bwsum__stat\"><strong class=\"bwsum__num\">up to 18<\/strong><span>monthly earnings where the court dissolves the employment: up to twelve, for older employees with long service up to 15 or 18 (section 10 KSchG)<\/span><\/div><\/div><div class=\"bwsum__warn\">Filing a claim, even a late one, forfeits the entitlement under section 1a KSchG (BAG 2 AZR 971\/06).<\/div><p class=\"bwsum__note\">There is no general right to severance. It is usually agreed in a settlement, and the amount depends on the prospects of the claim.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Will I get unemployment benefit without a suspension period?<\/h3>\r\n<p>Yes, if the employee simply accepts the dismissal or challenges it. Not filing a dismissal protection claim does not trigger a suspension period (Sperrzeit) for unemployment benefit (Arbeitslosengeld), because merely accepting a dismissal is not a termination of the employment by the employee. The Federal Social Court (Bundessozialgericht, BSG) restated this earlier case law in its judgment of 18 December 2003 (B 11 AL 35\/03 R) and at the same time held that a settlement agreement concluded after the dismissal can amount to such a termination. Under the Agency\u2019s internal guidelines on section 159 SGB III (Fachliche Weisungen, no. 159.1.1.1(4), as of 07\/2026) this also applies where the employee accepts severance, for example under section 1a KSchG.<\/p>\r\n<p>The risk arises if the employee signs a termination agreement (Aufhebungsvertrag) or, after the dismissal, a settlement agreement (Abwicklungsvertrag). The Federal Employment Agency then checks whether there was an important reason (section 159(1) of Social Code III, SGB III). Without one, the suspension period is generally twelve weeks (section 159(3) SGB III) and the benefit period is reduced by at least a quarter (section 148(1) no. 4 SGB III). Under the same guidelines (no. 159.1.2.1.1(2)) there is an important reason where the employer had firmly announced a redundancy dismissal for the same date, the notice period would have been observed, the employee could be dismissed by ordinary notice and the severance does not exceed 0.5 monthly salaries per year of service. The Agency then does not examine whether the announced dismissal would have been lawful. Have a termination agreement checked before signing, see our article on the <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/aufhebungsvertrag-termination-agreement\/\">Aufhebungsvertrag<\/a>.<\/p>\r\n<p>Separately, you must register as a jobseeker no later than three months before the employment ends, or within three days of learning the end date if less time remains (section 38(1) SGB III). Late registration leads to a one-week suspension (section 159(1) sentence 2 no. 9 and (6) SGB III).<\/p>\r\n<figure class=\"bwsum\" aria-label=\"Unemployment benefit: what triggers a suspension and what does not\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">Unemployment benefit: what triggers a suspension and what does not<\/p><div class=\"bwsum__risk\"><div class=\"bwsum__vbar\"><\/div><div><p class=\"bwsum__lbl\">Suspension risk<\/p><div class=\"bwsum__row\"><b>Termination or settlement agreement without an important reason<\/b><span>Generally a twelve-week suspension, benefit period reduced by at least a quarter.<span class=\"bwsum__p\">section 159 SGB III<\/span><\/span><\/div><div class=\"bwsum__row\"><b>Late registration as a jobseeker<\/b><span>One-week suspension. Register no later than three months before the end, or within three days if less time remains.<span class=\"bwsum__p\">section 38 SGB III<\/span><\/span><\/div><div class=\"bwsum__row\"><b>Termination agreement with an important reason<\/b><span>No suspension, for example where a redundancy dismissal for the same date was firmly announced and severance does not exceed 0.5 monthly salaries per year.<\/span><\/div><div class=\"bwsum__row\"><b>Accepting the dismissal or suing<\/b><span>No suspension, even when accepting severance under section 1a KSchG (BSG B 11 AL 35\/03 R).<\/span><\/div><p class=\"bwsum__lbl\" style=\"margin:.2rem 0 0\">No suspension<\/p><\/div><\/div><p class=\"bwsum__note\">Have a termination agreement checked before signing.<\/p><\/figure>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Will I be paid for the time the case takes?<\/h3>\r\n<p>If the court finds the dismissal void, the employer must pay the salary for the entire period from the end of the notice period until the employee returns, even though the employee did not work in that time (default of acceptance, section 615 sentence 1 BGB). Other earnings, unemployment benefit and anything the employee maliciously failed to earn are deducted (section 11 KSchG).<\/p>\r\n<p>The BAG expects employees to look for reasonable work while the case is pending. An employee who registers with the Agency but makes no efforts of their own risks losing part of the back pay, even with good prospects of winning (BAG, judgment of 15 January 2025, 5 AZR 273\/24). The employer, however, has to name a specific reasonable job the employee could have taken. In that case it failed to do so and had to pay. Keep a record of applications and responses to job offers from the Agency.<\/p>\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What should I do after receiving a redundancy dismissal in Germany?<\/h3>\r\n<p>The deadline comes first: the dismissal protection claim (K\u00fcndigungsschutzklage) must reach the labour court within three weeks of receiving the written dismissal (section 4 sentence 1 KSchG). After that the dismissal is deemed valid from the outset, even if it was defective (section 7 KSchG). A late claim is only admitted if the employee was prevented from filing in time despite exercising all reasonable care, and the application must be made within two weeks after the obstacle ceases (section 5(1) and (3) KSchG).<\/p>\r\n<p>Before the labour court of first instance you may act on your own (section 11(1) of the Labour Courts Act, ArbGG). Each side bears its own lawyer\u2019s fees at first instance, whatever the outcome (section 12a(1) sentence 1 ArbGG). The procedure is described in our article on the <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/german-labour-court\/\">German labour court<\/a>, and all steps after a dismissal in the guide <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/dismissal-in-germany-what-to-do\/\">dismissal in Germany: what to do<\/a>.<\/p>\r\n<p>Before deciding whether to sue, check whether the letter offers severance under section 1a KSchG and compare it with the realistic value of the case. The notice period for a redundancy dismissal is the same as for any other ordinary dismissal by the employer and depends on length of service: from four weeks to seven months (section 622(1) and (2) BGB), details in our article on <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/notice-periods-germany\/\">notice periods in Germany<\/a>.<\/p>\r\n    <figure class=\"bwsum\" aria-label=\"After receiving the dismissal, every day counts\" style=\"margin-left:0;margin-right:0\"><p class=\"bwsum__eye\">At a glance<\/p><p class=\"bwsum__t\">After receiving the dismissal, every day counts<\/p><ol class=\"bwsum__tl\"><li><b>Day of receipt<\/b> \u00b7 Note the date, check whether the letter offers severance under section 1a KSchG.<\/li><li><b>Within three days<\/b> \u00b7 Register as a jobseeker if less than three months remain until the end (section 38(1) SGB III).<\/li><li><b>Within three weeks<\/b> \u00b7 The dismissal protection claim must reach the labour court (section 4 sentence 1 KSchG).<\/li><li class=\"bwsum__end\"><b>After that<\/b> \u00b7 The dismissal is deemed valid (section 7 KSchG). A late claim only in exceptional cases, application within two weeks after the obstacle ceases.<\/li><\/ol><p class=\"bwsum__note\">The notice period itself depends on length of service: from four weeks to seven months (section 622(1) and (2) BGB).<\/p><\/figure>\r\n<\/div>\r\n\r\n    <div class=\"hl rv\" style=\"max-width:760px\">\r\n<span class=\"eyebrow\">Checklist<\/span>\r\n  <h3>Redundancy dismissal in Germany \u2013 what to check within 3 weeks<\/h3>\r\n  <ul style=\"margin:.8rem 0 0 1.1rem;padding:0\">\r\n    <li style=\"margin:.35rem 0\">Deadline: claim within 3 weeks of receipt (section 4 KSchG), otherwise the dismissal is deemed valid (section 7 KSchG).<\/li>\r\n    <li style=\"margin:.35rem 0\">Form: original with a handwritten signature (section 623 BGB). E-mail, text message or scan are not enough.<\/li>\r\n    <li style=\"margin:.35rem 0\">Dismissal Protection Act: more than 10 employees in the establishment and more than 6 months of service (section 23(1), section 1(1) KSchG).<\/li>\r\n    <li style=\"margin:.35rem 0\">Grounds: which decision removed the position and from when? Is someone else, an agency worker or colleagues on overtime now doing your work?<\/li>\r\n    <li style=\"margin:.35rem 0\">Vacant positions: the employer\u2019s job advertisements before and after the dismissal, also in other establishments in Germany and on worse terms.<\/li>\r\n    <li style=\"margin:.35rem 0\">Social selection: request the reasons for the selection in writing (section 1(3) sentence 1 KSchG) and compare length of service, age, dependants and disability with colleagues who stayed.<\/li>\r\n    <li style=\"margin:.35rem 0\">Works council: was it consulted (section 102 BetrVG) and did it object? Then continued employment until the end of the case is possible.<\/li>\r\n    <li style=\"margin:.35rem 0\">Collective redundancy: are the thresholds of section 17 KSchG reached and did the notification reach the Agency before the dismissal?<\/li>\r\n    <li style=\"margin:.35rem 0\">Severance: does the letter contain an offer under section 1a KSchG (0.5 salaries per year), is there a social plan? Do not sign a termination agreement without checking the effect on unemployment benefit.<\/li>\r\n    <li style=\"margin:.35rem 0\">Employment Agency: register as a jobseeker within 3 days of the dismissal or 3 months before the end (section 38(1) SGB III).<\/li>\r\n  <\/ul>\r\n    <\/div>\r\n\r\n    <div class=\"prose rv\" style=\"font-size:1.02rem\">\r\n<h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Frequently asked questions<\/h3>\r\n<p><strong>What does betriebsbedingte K\u00fcndigung mean in English?<\/strong><br>It is a redundancy dismissal, a dismissal for operational reasons based on urgent requirements of the business rather than the employee\u2019s person or conduct (section 1(2) sentence 1 KSchG). Typical reasons are a lack of orders, a closed department, outsourcing or the closure of the establishment.<\/p>\r\n<p><strong>Do I always get severance pay after a redundancy dismissal in Germany?<\/strong><br>No. The statutory severance of 0.5 monthly salaries per year applies only where the employer offers it in the dismissal letter under section 1a KSchG and you do not sue. A social plan may also provide severance (section 112 BetrVG). In all other cases severance is negotiated, usually in a settlement before the labour court.<\/p>\r\n<p><strong>How much severance pay is usual in Germany?<\/strong><br>Under section 1a KSchG it is 0.5 monthly earnings per year of service. Settlements often start from the same formula, but the multiplier rises with the prospects of the claim. Where the court dissolves the employment, up to twelve monthly earnings are possible, and up to 15 or 18 for older employees with long service (section 10 KSchG).<\/p>\r\n<p><strong>Can I be made redundant while on sick leave in Germany?<\/strong><br>Yes. Sick leave does not protect against dismissal in Germany and plays no role in assessing operational reasons. The three-week deadline for a claim also runs during illness.<\/p>\r\n<p><strong>What notice period applies to a redundancy dismissal?<\/strong><br>The same as for any ordinary dismissal by the employer: four weeks to the 15th or the end of a month, one month after two years and seven months to the end of a month after 20 years (section 622(1) and (2) BGB), unless a collective or individual agreement provides for longer periods.<\/p>\r\n<p><strong>Will I lose unemployment benefit after a redundancy dismissal?<\/strong><br>No, as long as you only accept the dismissal or sue (BSG, B 11 AL 35\/03 R). A suspension of up to twelve weeks is a risk if you sign a termination or settlement agreement without an important reason (section 159 SGB III).<\/p>\r\n<p><strong>Can my employer hire someone new after making me redundant?<\/strong><br>If the new person does the same work in the same position, that speaks against a permanent loss of work and is a strong argument in court. Replacing you with an agency worker is an inadmissible replacement dismissal (BAG, 2 AZR 140\/12).<\/p>\r\n<p style=\"font-size:.85rem;color:var(--ink-soft)\">Legal position: October 2026. This article is for general information and does not replace legal advice in an individual case.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"mini-cta rv\"><b>Made redundant in Germany?<\/b><span style=\"color:var(--ink-soft);font-size:.92rem\">You only have three weeks to file a claim. Send us the dismissal letter and your contract. We check the grounds, the social selection and your chances of severance, in English, German and Polish.<\/span><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/#kontakt\" class=\"btn\">Send your dismissal for review <span class=\"arr\">\u2192<\/span><\/a><\/div>\r\n    <div class=\"prose rv\" style=\"margin-top:1.5rem\">\r\n      <h3 style=\"font-size:1.1rem\">Related topics<\/h3>\r\n      <div class=\"chips\" style=\"margin-top:.8rem\">\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/social-selection-germany-redundancy\/\">Social selection in Germany \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/dismissal-in-germany-what-to-do\/\">Dismissal in Germany: what to do \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/aufhebungsvertrag-termination-agreement\/\">Aufhebungsvertrag \u2014 termination agreement \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/severance-pay-germany-when-paid\/\">When severance pay is paid \u2192<\/a>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/article>\r\n\r\n<section class=\"sec alt\">\r\n  <div class=\"wrap\">\r\n    <div class=\"lawyer rv\">\r\n      <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr Artur Barczewski\" loading=\"lazy\">\r\n      <div>\r\n        <b>Dr Artur Barczewski<\/b>\r\n        <div class=\"role\">niedergelassener europ\u00e4ischer Rechtsanwalt \/ Radca prawny<\/div>\r\n        <p>Author of this article. Represents clients across Germany in English, German and Polish. <a href=\"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\">View profile \u2192<\/a><\/p>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<section class=\"cta-end\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\">\r\n    <span class=\"eyebrow rv\">Contact<\/span>\r\n    <h2 class=\"rv d1\">Does your situation look similar?<\/h2>\r\n    <p class=\"rv d2\">Every case has details that change the outcome. Describe yours \u2014 you will receive a specific answer and a fee estimate.<\/p>\r\n    <div class=\"row rv d3\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/#kontakt\" class=\"btn\">Describe your case <span class=\"arr\">\u2192<\/span><\/a>\r\n      <a href=\"tel:+4933555310969\" class=\"phone\">\u260e +49 335 553 10969<\/a>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<footer>\r\n  <div class=\"wrap\">\r\n    <div class=\"foot-grid\">\r\n      <div>\r\n        <div class=\"foot-brand\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"BWLAW logo\" width=\"38\" height=\"26\"><\/div>\r\n        <p>Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<br>Rudolf-Breitscheid-Stra\u00dfe 10<br>15230 Frankfurt (Oder), Germany<br><a href=\"tel:+4933555310969\">+49 335 553 10969<\/a> \u00b7 <a href=\"mailto:info@bwlaw.de\">info@bwlaw.de<\/a><\/p>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Practice areas<\/div>\r\n        <ul>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction law and VOB\/B<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Dismissal in Germany<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection in Germany<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Companies and incorporation<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/\">Defective car from Germany<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Information<\/div>\r\n        <ul>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/\">Home<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><\/li>\r\n          <li><a href=\"\/en\/contact\/\">Contact &amp; directions<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/impressum\/\">Imprint<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/privacy-policy\/\">Privacy policy<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n    <\/div>\r\n    <div class=\"foot-bottom\">\r\n      <span>\u00a9 2026 BWLAW \u00b7 Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<\/span>\r\n      <span>niedergelassene europ\u00e4ische Rechtsanw\u00e4lte \/ Radcowie prawni \u00b7 Frankfurt (Oder)<\/span>\r\n    <\/div>\r\n  <\/div>\r\n<\/footer>\r\n\r\n<div class=\"sticky-cta\">\r\n  <a href=\"tel:+4933555310969\" class=\"call\">\u260e Call<\/a>\r\n  <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/#kontakt\" class=\"book\">Describe your case<\/a>\r\n<\/div>\r\n\r\n<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@graph\": [\r\n    {\r\n      \"@type\": \"Article\",\r\n      \"headline\": \"Redundancy in Germany (betriebsbedingte K\u00fcndigung): when the dismissal is valid, severance pay and what to do\",\r\n      \"description\": \"Redundancy in Germany (betriebsbedingte K\u00fcndigung): when it is valid under section 1 KSchG, severance pay, BAG 6 AZR 157\/22 (2026) and the 3-week deadline.\",\r\n      \"inLanguage\": \"en\",\r\n      \"author\": {\r\n        \"@type\": \"Person\",\r\n        \"name\": \"dr Artur Barczewski\",\r\n        \"url\": \"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\"\r\n      },\r\n      \"publisher\": {\r\n        \"@type\": \"LegalService\",\r\n        \"name\": \"BWLAW \u2013 Kanzlei Dr. Barczewski & Dr. Wroblewska GbR\",\r\n        \"url\": \"https:\/\/bwlaw.de\/\"\r\n      },\r\n      \"datePublished\": \"2026-10-04\",\r\n      \"dateModified\": \"2026-10-04\",\r\n      \"mainEntityOfPage\": \"https:\/\/bwlaw.de\/en\/knowledge-base\/redundancy-in-germany\/\"\r\n    },\r\n    {\r\n      \"@type\": \"FAQPage\",\r\n      \"mainEntity\": [\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"What does betriebsbedingte K\u00fcndigung mean in English?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"It is a redundancy dismissal, a dismissal for operational reasons based on urgent requirements of the business rather than the employee\u2019s person or conduct (section 1(2) sentence 1 KSchG). Typical reasons are a lack of orders, a closed department, outsourcing or the closure of the establishment.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Do I always get severance pay after a redundancy dismissal in Germany?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"No. The statutory severance of 0.5 monthly salaries per year applies only where the employer offers it in the dismissal letter under section 1a KSchG and you do not sue. A social plan may also provide severance (section 112 BetrVG). In all other cases severance is negotiated, usually in a settlement before the labour court.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"How much severance pay is usual in Germany?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"Under section 1a KSchG it is 0.5 monthly earnings per year of service. Settlements often start from the same formula, but the multiplier rises with the prospects of the claim. Where the court dissolves the employment, up to twelve monthly earnings are possible, and up to 15 or 18 for older employees with long service (section 10 KSchG).\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Can I be made redundant while on sick leave in Germany?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"Yes. Sick leave does not protect against dismissal in Germany and plays no role in assessing operational reasons. The three-week deadline for a claim also runs during illness.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"What notice period applies to a redundancy dismissal?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"The same as for any ordinary dismissal by the employer: four weeks to the 15th or the end of a month, one month after two years and seven months to the end of a month after 20 years (section 622(1) and (2) BGB), unless a collective or individual agreement provides for longer periods.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Will I lose unemployment benefit after a redundancy dismissal?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"No, as long as you only accept the dismissal or sue (BSG, B 11 AL 35\/03 R). A suspension of up to twelve weeks is a risk if you sign a termination or settlement agreement without an important reason (section 159 SGB III).\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Can my employer hire someone new after making me redundant?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"If the new person does the same work in the same position, that speaks against a permanent loss of work and is a strong argument in court. Replacing you with an agency worker is an inadmissible replacement dismissal (BAG, 2 AZR 140\/12).\"\r\n          }\r\n        }\r\n      ]\r\n    }\r\n  ]\r\n}\r\n<\/script>\r\n","protected":false},"excerpt":{"rendered":"<p>Construction Debt collection Companies Employment law Cars Knowledge base EN DE PL Contact us \u2192 \u2630 Home\/Knowledge base\/Employment law \u00a7Series: Dismissal step by step Redundancy in Germany (betriebsbedingte K\u00fcndigung): when the dismissal is valid, severance pay and what to do A shortage of orders, a restructuring, a department closed down: in a redundancy dismissal (betriebsbedingte [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":4417,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-bwlaw-page.php","meta":{"footnotes":"","rank_math_title":"Redundancy in Germany: valid dismissal and severance | BWLAW","rank_math_description":"Redundancy in Germany (betriebsbedingte K\u00fcndigung): when it is valid under section 1 KSchG, severance pay, BAG 6 AZR 157\/22 (2026) and the 3-week deadline.","rank_math_focus_keyword":"redundancy in germany","rank_math_robots":[]},"class_list":["post-5302","page","type-page","status-publish","hentry"],"bwlaw_import":{"lang":"en","template":"template-bwlaw-page.php"},"_links":{"self":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/5302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/comments?post=5302"}],"version-history":[{"count":0,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/5302\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/pages\/4417"}],"wp:attachment":[{"href":"https:\/\/bwlaw.de\/en\/wp-json\/wp\/v2\/media?parent=5302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}