5 things to do when you believe that termination is around the corner

Sometimes, a termination comes “out of the blue”. But not always. Often, there are signs that an employee might get fired. In this blog article, we will first summarize the three most important signs that a termination could be imminent. In the second section of our article, we will give you five tips on what you could do in this case. Our partner lawyers estimate that around 40% of employees who think they could be fired are (unfortunately) correct within 6 months.

Three signs that a termination might be imminent

Not every difficult phase at work means dismissal is around the corner. However, certain patterns regularly appear before employers reduce staff or terminate individual employees.

The following warning signs are particularly common.

Poor financial performance of your employer

In many cases, dismissals begin with financial problems within the company. Falling sales, lost clients, restructuring measures, hiring freezes, or budget cuts often lead to redundancies later.

Employees should pay attention when:

• important projects are cancelled,
• investments suddenly stop,
• payment delays become more frequent,
• departments are merged,
• layoffs already happen in other countries or divisions.

This is particularly relevant in international companies and startups under financial pressure.

Practical tip:
Employees often underestimate how early companies internally prepare restructuring measures. If rumours about cost-cutting or restructuring continue over several months, employees should already begin preparing for a potential dismissal.

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Persistent negative feedback

Repeated criticism from management can also indicate that a termination is being prepared — especially if the criticism suddenly becomes unusually formal or disproportionate.

Warning signs include:

• repeated negative performance reviews,
• criticism for minor issues,
• exclusion from important meetings,
• formal warnings (“Abmahnungen”),
• threats regarding performance or behaviour.

In some situations, employers create a paper trail to justify a later conduct-related dismissal.

Important:
Not every criticism is unlawful or strategic. However, if criticism becomes one-sided, excessive, or unusually formal, employees should begin documenting conversations and preserving relevant emails or evaluations.

Unexpected changes in responsibility

Sudden changes in responsibilities can also be a warning sign, especially when combined with negative feedback or restructuring measures.

Typical examples include:

• important clients are reassigned,
• colleagues gradually take over projects,
• the employee loses decision-making authority,
• management excludes the employee from communication,
• the employee suddenly has to document all workflows and contacts.

Sometimes employers intentionally isolate employees or redistribute responsibilities before a termination.

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Practical tip:
Employees should carefully document sudden task changes or unusual instructions. This documentation can later become important evidence in labour court proceedings, especially in cases involving bullying, discrimination, or unfair dismissal.

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Five steps you should take if a termination seems imminent

If you believe a dismissal may happen soon, preparation is critical. Employees who act early usually negotiate from a much stronger position later.

1. Clarify your own goals

Before reacting emotionally, employees should first ask themselves an important question:

Do you actually want to keep this job?

In some cases, fighting for the position makes sense — especially if the salary, working conditions, career opportunities, or work-life balance are particularly attractive.

In other situations, a negotiated exit with severance pay and a new position elsewhere may be the better long-term option.

Practical tip:
Employees who know their own priorities early usually negotiate severance packages much more effectively later.larity about your own goals

2. Test the market for a new job

Even if you ultimately remain with your current employer, updating your market position early creates security and leverage.

Employees should:

• update LinkedIn or Xing profiles,
• refresh CVs and certificates,
• reactivate professional contacts,
• speak with recruiters or headhunters,
• explore alternative job opportunities.

Knowing that alternatives exist often significantly reduces stress during termination negotiations.

3. Obtain legal protection insurance

Many employees only think about legal insurance after receiving a dismissal — but at that point, it is often too late because waiting periods usually apply.

In Germany, employees generally pay their own lawyer’s fees in first-instance labour court proceedings, even if they win the case.

Practical tip:
Good employment legal protection insurance can significantly improve an employee’s negotiating position because it removes financial pressure during dismissal proceedings.

4. Review your financial situation

If a dismissal may be approaching, employees should review their finances early and avoid unnecessary financial commitments.

Examples include:

• delaying expensive purchases,
• postponing major investments,
• reducing unnecessary expenses,
• strengthening emergency savings.

This creates flexibility and reduces pressure during severance negotiations.

5. Secure important documents and claims

This is one of the most important steps — and employees often forget it until access to company systems is already blocked.

Employees should secure copies of important documents while access still exists, including:

• bonus agreements,
• commission rules,
• overtime records,
• target agreements,
• performance evaluations,
• emails regarding compensation,
• proof of variable remuneration.

These documents can become extremely valuable later in labour court proceedings or severance negotiations.

Important:
Employees should only secure documents they are legally allowed to access. Confidential business secrets or customer data must not be unlawfully copied or removed.

Practical tip:
Overtime claims, bonuses, commissions, or stock compensation can significantly increase the total settlement value in labour court negotiations.

Conclusion: where there’s smoke, there’s fire (sometimes)

Employees often sense earlier than they realise when a dismissal may be approaching. While not every warning sign leads to termination, preparation is almost always worthwhile.

Employees who stay calm, secure evidence early, review their legal and financial situation, and explore alternatives are usually in a far stronger position if a dismissal actually occurs.

Most importantly: employees only have three weeks to challenge a dismissal before the labour court. Missing this deadline usually makes the dismissal legally valid — even if it was unlawful.