Dismissal Protection Claim

A lawsuit filed by an employee before the German labour court (Arbeitsgericht) seeking a declaration that a dismissal is socially unjustified or otherwise legally invalid (§ 4 Kündigungsschutzgesetz).

The claim must reach the competent labour court within three weeks of receipt of the dismissal. If this strict deadline is missed, the dismissal is deemed effective – regardless of whether it was substantively justified. Protection under the Dismissal Protection Act generally requires more than six months of service in a business that regularly employs more than ten people.

In practice, most proceedings end with a court-approved settlement that includes a severance payment. For executives and employees with long service, a timely claim can significantly improve the negotiation position. Legal advice should therefore be sought immediately after receipt of a dismissal in order to preserve the three-week deadline.