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Does the reason for termination have to be stated in the termination letter?
Expert article in labor law
Does the reason for termination have to be mentioned in the termination letter?
Many employees are surprised when they receive a termination letter that doesn't state a specific reason for termination. But is this even legally permissible? The answer depends on who is issuing the termination notice and the type of termination.
Ordinary termination under German labor law – Important information for employers
In Germany, the principle of ordinary termination applies:
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Employers may terminate an employment relationship subject to the statutory or contractually agreed notice period without having to state a specific reason in the termination letter.
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This type of termination allows companies to respond flexibly to operational changes, such as restructuring, staff reductions or strategic realignments.
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It differs significantly from extraordinary (immediate) termination, which is only permissible in the event of serious breaches of duty and allows for immediate termination of the employment relationship.
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Despite this fundamental freedom, ordinary termination is not permitted without restrictions:
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The Dismissal Protection Act (KSchG) protects many employees from socially unjustified dismissals.
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For example, in the case of a lack of social justification or formal errors.
As an employment law attorney, I provide expert advice on all matters relating to ordinary termination, protection against dismissal, severance pay, and continued employment. Request a free initial assessment now – I will consistently enforce your employment law rights.
Protection against dismissal and social justification – Under which circumstances dismissal is inadmissible
Although in Germany it is generally possible to terminate a contract without giving a reason, the following applies:
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The Dismissal Protection Act (KSchG) protects employees from arbitrary dismissals – especially if the employment relationship has lasted longer than six months and the company employs more than 10 employees.
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In such cases, a dismissal is only valid if it is socially justified. This means that, as an employer, I must prove that the dismissal is based on one of the following reasons:
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Dismissal for operational reasons: for example due to job cuts, restructuring or outsourcing.
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Termination for personal reasons: for example, in the case of long-term illness or lack of suitability.
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Dismissal for conduct reasons: for example, in the case of repeated misconduct or breaches of duty.
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Only if one of these reasons is plausible and I properly justify the termination will it be considered socially justified.
As an employment lawyer, I will assess whether your dismissal is socially justified and assist you with unfair dismissal claims, severance pay negotiations, or continued employment. Contact me now for a prompt initial assessment – I will enforce your rights.
Extraordinary (immediate) termination – Important information for employers and employees
Extraordinary termination, also known as termination without notice, is only permitted under strict conditions under labor law. Unlike ordinary termination, this terminates the employment relationship immediately, without the need for a notice period.
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A prerequisite for extraordinary termination is an important reason according to Section 626 of the German Civil Code (BGB).
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This means that it is unreasonable for me as the terminating employer (or employee) to continue the employment relationship even until the end of the regular notice period.
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Potential reasons for termination without notice include:
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Serious theft or fraud
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Gross breach of duty (e.g. persistent refusal to work, physical attacks, serious insults)
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Breach of trust or disclosure of secrets
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Disturbance of industrial peace
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Important: As a rule, a warning must be given before termination without notice, unless the misconduct is so serious that a warning would be unreasonable.
Extraordinary dismissal is a sharp weapon in employment law—and is often open to challenge. As an employment lawyer, I examine whether there is good cause, whether the formal requirements have been met, and whether a wrongful termination lawsuit might be worthwhile.
Judicial review of the reason for dismissal – My rights before the employment court
Employees who have doubts about the legality of a dismissal are entitled to have it reviewed by a court.
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In the context of a dismissal protection lawsuit, the labor court examines whether the dismissal complies with the legal requirements and whether there is a socially justified reason according to the Dismissal Protection Act (KSchG).
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If the employer cannot adequately explain or substantiate the reason for termination, the court has the option of declaring the termination invalid – which means that the employment relationship continues or a severance payment can be negotiated.
As an employment law attorney, I will competently represent you in unfair dismissal proceedings and advocate for your continued employment or appropriate severance pay.
Termination of employment under special employment contracts and collective agreements – What I need to pay attention to
Not every termination is based exclusively on general legal requirements. In many cases, different regulations apply, which are stipulated in collective agreements, works agreements, or specific employment contracts.
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These may include individual reasons for termination, different notice periods or special protection against dismissal – for example in the public sector, in care, in the skilled trades or in industry.
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It is therefore crucial to carefully examine the contractual and collective bargaining basis before any legal assessment.
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This is particularly important when:
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Dismissals in collective bargaining-bound companies
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Industry-specific special regulations
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Contractual clauses with extended or limited termination rights
As an employment law attorney, I carefully review the terms and conditions of your employment contract and collective bargaining agreements and represent you competently and effectively in the event of termination – even if you plan to file a wrongful termination suit.
Make an inquiry now
We will be happy to provide you with comprehensive, personal advice on your concerns.
