Dismissal due to personal differences

Conflicts at work are common, but personal differences alone cannot justify a dismissal. Only when the differences lead to misconduct or poor performance a dismissal might be valid. This article explains when a dismissal due to such differences is permitted in Germany and what employees need to know to protect their rights.

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Key takeaways:
  • Personal differences alone are not a reason for dismissal. Only resulting misconduct or poor performance might justify a dismissal.
  • A dismissal based on misconduct is possible if personal conflicts result in a breach of contract, e.g. insults, physical altercations, harassment.
  • Performance related dismissals are only possible, if the personal differences lead to a reduced work-performance, illness and increased absences.
  • Summary dismissals require a serious reason, like an assault, making continuation of employment until the end of the agreed notice period unreasonable.
  • Employees may give notice (within the agreed notice period) at any time without giving reasons. But they have to be aware of the negative effects on unemployment benefits.

Employer dismissal due to personal differences

Dismissals can arise from personal differences between employees and employers or colleagues. The reasons might be different opinions, different personalities, or different working ethics. But personal differences alone do not justify a dismissal. Only conduct or changes in performance resulting from these differences might be relevant. Here some examples:

  • Differing approaches to a specific task in a meeting first lead to a verbal argument. This, in turn, may lead to insults or physical altercations. This might justify a dismissal based on misconduct.
  • Colleagues with different personalities do not get along in the workplace. Out of frustration one of the colleague begins to harass the other one. This might justify a dismissal based on mobbing.
  • As a result of ongoing personal differences an employee is regularly absent due to illness or the work performance declines. This can lead to termination based on incapacity.

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Dismissal based on misconduct

If an employee is dismissed based on misconduct due to personal differences, the employee may refer the matter to the Labor Court within 3 weeks of receiving the dismissal. If the German Protection Against Dismissal Act (Kündigungsschutzgesetz) applies (employment longer than 6 months in a company with more than 10 employees), the employer must prove the following:

  1. The specific misconduct (what, when, where, and why the employee acted improperly). The personal differences may be mentioned but are only secondary.
  2. Previous written warnings for the same or similar behavior.
  3. There are no less severe measures than the dismissal. Employers must balance the interests of the employer and employee against each other, e.g. disruption caused by the personal differences against the length of the employment relationship, the employee’s age or reasons behind the conflict.

Note: Employees can argue against the dismissal that the employer did not take reasonable steps to resolve the personal differences before the dismissal. Examples: the employer should have consulted the employee; the employer should have gone through mediation or should have adjusted the workplace etc.

In case of a performance-related dismissal due to personal differences, the employer must prove in terms of the German Protection Against Dismissal Act:

  • The employee is partly or completely unable to fulfill the contractual duties (negative future prognosis). Example: reduced work performance, absences due to illness caused by the personal differences or poor work environment.
  • The personal differences and the resulting inability to perform lead to disruptions in business operations.
  • Balancing of interests: The interests of the employee (how long the employment relationship has been free of disruption, length of service, age, background/cause of the differences, etc.) and those of the employer (disruption of business operations, costs, etc.) must be taken into account.
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Summary dismissal due to personal differences

A summary dismissal (fristlose Kündigung) has stricter requirements. Employers may only terminate immediately if a serious reason exists and continuing employment up to the agreed notice period is unreasonable. Examples: refusal to work or criminal acts caused by personal conflicts.

Employee resigns due to personal differences

Employees may resign (ordinary termination) at any time without reasons. They must comply with the general formalities: the resignation must be in writing and they must comply with the agreed notice periods. A summary termination (i.e. with immediate effect) requires a serious reason and a balance of interests.

Alternative: termination agreement

In all cases the employer and employee can enter into a termination agreement (Aufhebungsvertrag).

Note: A termination agreement can trigger a suspension of unemployment benefits for up to 12 weeks. This means the benefits are reduced and only paid after 12 weeks. It is generally safer to end employment with proper notice and a possible early release from working duties (Freistellung). Employees should never sign a termination agreement hastily and should consult a specialized attorney in labour law for guidance, not only on severance pay.

Frequently asked questions (FAQ)

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Timo Sauer Avatar

Timo Sauer

Managing Director & Co-Founder, AbfindungsHero Diplom-Betriebswirt (FH)

Timo Sauer is an economist and Co-Founder of AbfindungsHero. As Managing Director, he has helped build the platform into a trusted resource for employees facing terminations and severance negotiations in Germany. His focus lies on settlement agreements, unfair dismissal protection, and practical legal education from the employee's perspective.

Areas of Expertise: Expert in severance negotiation from an employee perspective, company building in the legal tech sector, digital legal education, legal content & consumer awareness

All information on our website is of an editorial nature and expressly does not constitute legal advice. Naturally, we have made every effort to ensure the accuracy of the information and links contained on this website. Nevertheless, we cannot guarantee the accuracy of the information. It is in no way a substitute for legal advice from a lawyer.