Dismissal for theft in Germany: what you need to know

Being accused of theft at work is serious. A dismissal for theft can happen even for small items, as theft is considered a severe breach of trust between employee and employer. In many cases, employers can terminate immediately without notice. This article explains when a dismissal for theft is legally allowed, the impact on severance pay and unemployment benefits (ALG), and what to do if you are wrongly accused.

Key takeaways

• Employees caught stealing risk immediate termination for theft – even for minor items.
• Theft is a serious breach of trust; usually, no warning (Abmahnung) is required prior to termination.
• Employers must prove the theft, but in some cases a “suspicion dismissal” (Verdachtskündigung) is allowed.
• Unemployment benefits (ALG) may be delayed up to 12 weeks.
• Severance pay is only possible if the dismissal is legally challengeable. Filing a claim within three weeks is crucial to protect your rights.

Dismissal for theft

If an employee steals at work, the employer can issue either an ordinary (ordentliche) or extraordinary (fristlose) dismissal. A dismissal for theft counts as a behavior-related termination.

In most theft cases, the employer will terminate immediately without notice. Often, a backup ordinary dismissal is also issued in case the immediate dismissal is later deemed invalid.

Immediate dismissal for theft

Employers can terminate without notice only if there is an important reason making continued employment until the end of the notice period unreasonable.¹ Theft at work typically meets this requirement.

Theft is an important reason

Whether stealing from colleagues or the company, theft almost always justifies an immediate dismissal. The value of the stolen item does not matter; what matters is the breach of trust.

In the “Emmely” case, a cashier took a 1.30 € bottle deposit receipt and was dismissed immediately. The Federal Labor Court (BAG) ruled this a severe violation of duty due to broken trust. Similarly, a buffet worker was dismissed for eating a piece of cake without permission. Both cases highlight that trust is the key factor, not the item’s value.

The theft must be connected to the workplace. Stealing outside work, e.g., in a supermarket, generally does not justify dismissal.

Balancing interests

Labor courts consider whether continued employment, despite the theft, is reasonable until the notice period ends. They weigh the employer’s interests against the employee’s, considering all circumstances: severity of misconduct, breach of trust, financial impact, employee’s culpability, risk of repetition, employment duration, and work history. For theft, the balance usually favors the employer.

While a warning (Abmahnung) is generally required before dismissal, theft often makes a warning unnecessary. Exceptions exist, like the Emmely case, where a 30-year spotless work record justified a warning before termination.

Two-week rule

Immediate dismissals must be issued within two weeks of discovering the reason. Late notification makes the dismissal invalid. Courts focus on when the employee received the notice, not when the employer wrote it. The employer must prove they acted within the two-week window.

Converting to ordinary dismissal

If the immediate dismissal is invalid, courts can often reinterpret it as an ordinary dismissal, ending the employment with proper notice. Employers usually preempt this by issuing an immediate dismissal with a backup ordinary dismissal. Contracts excluding ordinary dismissal may prevent this conversion.

Ordinary dismissal for theft

An ordinary (behavior-related) dismissal requires:

1. Proof that theft occurred as a breach of contract.
2. Usually no warning is needed if the misconduct is severe enough to make tolerance impossible.
3. The employer’s interest in ending the employment must outweigh the employee’s interests.

Other requirements

Employers must respect:

• Special protections (e.g., for severely disabled employees, pregnant employees, employees on parental leave, apprentices, works council members).
• Formal requirements and, for ordinary dismissals, notice periods.
• Proper consultation with the works council. Ignoring the works council alone can invalidate the dismissal.

Special issues

Theft raises special questions regarding: criminal proceedings, suspicion dismissals, unemployment benefits (ALG), waiting periods, and severance (Abfindung).

Suspicion dismissal (Verdachtskündigung)

If evidence is insufficient, a suspicion dismissal may be possible. The employer must prove a strong suspicion of theft and a serious trust breach, making continued employment unreasonable. The employee must be heard, and the two-week rule applies after the employer has clarified the facts.

Criminal proceedings

Criminal and labor law are separate. A reported theft or ongoing criminal case does not affect the validity of a dismissal. Conversely, even a conviction may not make a dismissal valid if procedural rules, like the two-week period, were violated.

Unemployment benefits after dismissal

A dismissal for theft does not eliminate entitlement to unemployment benefits (ALG), but the Federal Employment Agency may impose a waiting period of up to 12 weeks. During this time, no benefits are paid, and the total benefit period is shortened.

Severance after dismissal

There is no statutory right to severance. Whether and how much severance is paid depends on the likelihood of successfully challenging the dismissal. If the theft accusation is false, chances for severance are high. If proven, chances are low. Filing a dismissal protection claim (Kündigungsschutzklage) within three weeks is essential to secure rights and often encourages employers to offer fair severance, avoiding long legal disputes.

Frequently asked questions (FAQ)

Act quickly! If accused of theft at work, seek legal advice and file a claim within three weeks. Proper documentation, like emails and time sheets, strengthens your case.

1. § 626 BGB ↩︎