Employment contracts can be terminated by either party
Termination of employment
Employment contracts can be terminated by either party by
giving notice of termination (Kündigung) to the other contracting
party. The notice of termination must be made in writing in order
to be effective. German labor law distinguishes between “ordi-
nary termination” (discretionary dismissal effective at the end
of a notice period) and “extraordinary termination” (dismissal for
cause with immediate effect).
Minimum notice periods are stipulated in the German Civil Code
(Bürgerliches Gesetzbuch – BGB). Generally, a statutory notice
period of four weeks applies. The statutory notice period for
termination by the employer increases with the length of the
employment (for instance, employment of fve years extends
the notice period to two months). Statutory notice periods are
minimum notice periods and can generally be shortened only by
collective bargaining agreements. When concluding an employ-
ment contract, the parties often agree on a probationary period
(Probezeit) of up to six months.
During this period, the employer
and the employee can terminate the employment on only two
weeks’ notice.
EU Forecast
euf:ba.18g:160/nws-01