The amount in dispute (Streitwert) in an action for unfair dismissal is a very important figure for employees who have been dismissed. This is because the amount in dispute (also: value in litigation) is the basis for calculating court and legal fees in labour court proceedings. It thus directly influences the cost risk for employees who are considering taking legal action against unfair dismissal. It also plays a role for legal expenses insurance and in settlement negotiations.
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Contents
- What exactly is the ‘amount in dispute’?
- Determining the amount in dispute in the case of an action for unfair dismissal
- Determining and controlling the amount in dispute
- Frequently asked questions (FAQ)
What exactly is the ‘amount in dispute’ (Streitwert)?
The amount in dispute is the euro value of the matter in dispute in court proceedings (often also referred to as the ‘value of the proceedings’). It plays an important role in calculating court and legal fees, as well as in procedural matters (court jurisdiction, the possibility of legal remedies). The amount in dispute also forms the basis for the costs incurred in actions for unfair dismissal. The calculation of the amount in dispute for an action for unfair dismissal is based on three times the employee’s gross monthly salary (‘quarterly salary’). A higher salary thus leads to higher costs, while a higher severance payment, for example, has no influence on the amount in dispute.
In the event of legal disputes regarding the termination of an employment contract or an apprenticeship, the calculation of the amount in dispute is generally based at a maximum on the remuneration that would have been paid for a period of three months (we will come to the factors that increase the amount in dispute below). This applies in principle to court and legal fees:
- According to the German Court Fees Act (Gerichtskostengesetz, GKG), the court costs are always based on the amount in dispute, even in the case of an action for unfair dismissal. Important: If a settlement is reached, there are no court costs!
- Unless otherwise agreed, the attorney fees are also based on the amount in dispute.
Determining the amount in dispute in the case of an action for unfair dismissal
In the case of an action for unfair dismissal, the amount in dispute is usually set at three times the gross monthly salary. However, there are factors that increase or decrease the amount in dispute. On the one hand, further claims, for example for the payment of remuneration or holiday leave, lead to an increase in the amount in dispute. On the other hand, depending on the duration of the employment relationship, the court may also set a lower amount in dispute, which reduces the costs of the proceedings. For example, in the case of an employment period of up to six months, only one gross monthly salary is usually set as the amount in dispute. This provides financial relief for the employee, who, in the case of extremely short employment, can also expect only a small severance payment (if any):
The ‘normal’ amount in dispute in an action for unfair dismissal
As explained above, the amount in dispute in actions for unfair dismissal is normally three times the gross monthly salary (quarterly salary), as the following table shows:
| Monthly salary in € (gross) | Amount in dispute (Streitwert) |
| 1.000 € | 3.000 € |
| 1.500 € | 4.500 € |
| 2.000 € | 6.000 € |
| 2.500 € | 7.500 € |
| 3.000 € | 9.000 € |
| 3.500 € | 10.500 € |
| 4.000 € | 12.000 € |
| 5.000 € | 15.000 € |
| 7.500 € | 22.500 € |
| 10.000 € | 30.000 € |
| 15.000 € | 45.000 € |
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Factors that increase the amount in dispute
The amount in dispute in an action for unfair dismissal increases, for example, beyond the quarterly salary if several dismissals – such as an ordinary and an extraordinary dismissal – are challenged at the same time. At least if each dismissal counts as a separate subject matter in dispute (e.g. different termination dates). Furthermore, the value in litigation increases if, in addition to the action for unfair dismissal, further applications are made, for example for continued employment, the issuance of a certificate or the payment of back wages, as these are included separately in the calculation of the amount in dispute.
The following are a few examples of factors that often increase the amount in dispute when an action for unfair dismissal is brought:
| Subject Matter | Amount in dispute (guideline) |
| Written warning | 1 gross monthly salary per contested written warning, max. 3 monthly salaries (¼ year) |
| Dismissal with the option of altered conditions of employment | 1 to 3 gross monthly salaries, depending on the extent of the contractual alteration |
| Extraordinary termination (alternative: ordinary) | Maximum of one gross quarterly salary, regardless of the number of letters |
| Simple certificate (issuance or correction) | 10% of a gross monthly salary (note: the simple certificate is more of an exception) |
| Subsequent dismissals | No increase with the same termination date. Increase by the difference in remuneration with a different, later date, max. the quarterly earnings per additional dismissal |
| Surrender of work papers | 110% of a gross monthly salary |
| Qualified certificate (issue or correction) | One gross monthly salary, regardless of the content or duration of employment |
| Holiday entitlement/holiday pay (payment) | Amount of holiday pay |
| Payment (e.g. wages, holiday pay) | Amount of the sum claimed |
Factors reducing the amount in dispute
The value in litigation of an action for unfair dismissal can also be set at less than a quarter’s salary in the case of very short periods of employment. If the employment relationship lasted only a few weeks or months, the court takes into account that the economic value of the job for the employee is lower. Therefore, a lower amount is often set in accordance with the following table:
| Length of employment | Value in litigation |
| Up to 6 months | One gross monthly salary |
| Up to 12 months | Two gross monthly salaries |
| Over 12 months | Three gross monthly salaries |
Determining and monitoring the amount in dispute
In the event of an action for unfair dismissal, the competent labour court determines the amount in dispute. The determination is made in a decision on the amount in dispute, which forms the basis for calculating court and attorney fees. If you do not agree with the amount in dispute, you can file a cost appeal against the decision. You have Btwo weeks from the date of notification of the decision to file an appeal against the amount in dispute with the Higher Labour Court. The Higher Labour Court will review whether the amount in dispute has been set correctly. If the Higher Labour Court upholds the appeal, it can adjust the amount in dispute accordingly.
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