Dismissal due to personal differences

Conflicts at work are common, but personal differences alone usually cannot justify a dismissal. Only when disagreements lead to misconduct or a decline in performance might a termination be lawful. This guide explains when a dismissal due to personal differences is permitted in Germany and what employees need to know to protect their rights.

Key takeaways:

• Personal differences alone are not a reason for dismissal. Only resulting misconduct or performance issues may justify termination.
• Behavior-related dismissal is possible if personal conflicts cause blameworthy violations, such as insults, physical altercations, or harassment.
• Performance-related dismissal applies when conflicts lead to unavoidable drops in work output or increased absences.
• Immediate termination requires a serious reason, like an assault, making continuation of employment unreasonable.
• Employees can always resign normally, but they should check potential effects on unemployment benefits first.

Employer dismissal due to personal differences

Dismissals can arise from disagreements between employees and employers or colleagues. Causes include differing opinions, personalities, working styles, or communication issues. However, personal differences alone do not justify termination. Only behavior or performance changes resulting from these conflicts are relevant.

If the German Protection Against Dismissal Act (Kündigungsschutzgesetz, KSchG) applies, the employer must prove:

• Misconduct stemming from personal differences is sufficient for a behavior-based dismissal.
• Personal conflicts prevent the employee from fulfilling contractual obligations, justifying a performance-based dismissal.

Behavior-related dismissal

If an employee receives a behavior-related dismissal due to personal differences, they can file a dismissal protection claim (Kündigungsschutzklage) within three weeks.

Employers must demonstrate at court:

1. The specific misconduct (what, when, where, and why the employee acted improperly). Background causes like personal differences may be mentioned but are secondary.
2. Previous warnings for the same or similar behavior. Warnings may be skipped in cases of severe misconduct, such as physical attacks.
3. No milder alternatives exist. Employers must weigh interests: disruption caused by conflicts vs. employee factors like tenure, age, or reasons behind the conflict.

Employees can challenge whether the employer took reasonable steps to resolve conflicts before dismissal, e.g., discussions, mediation, reassignment, or workplace adjustments.

Performance-related dismissal

A performance-based dismissal due to personal conflicts is possible if unavoidable performance decline results. Employees can also file a dismissal protection claim within three weeks.

The employer must prove:

• The employee is partly or completely unable to fulfill contractual duties (negative future outlook). Example: reduced output or sickness absences caused by conflicts or a toxic work environment.
• The resulting performance issues disrupt company operations.
• Interests of both parties are considered: employee tenure, history, age, conflict background, and employer concerns like operational impact or costs.

Immediate dismissal due to personal differences

Immediate dismissal (fristlose Kündigung) is rare and strictly limited. Employers may only terminate immediately if a serious reason exists and continuing employment is unreasonable. Examples: refusal to work or criminal acts caused by personal conflicts.

Employee resignation due to personal differences

Employees may resign (ordinary termination) at any time without stating reasons, respecting formalities and notice periods. Immediate resignation requires a serious reason and a balance of interests.

Alternative: termination agreement

If neither ordinary nor immediate dismissal is feasible, a termination agreement (Aufhebungsvertrag) offers a mutual solution. Unlike a dismissal, it ends employment consensually, bypassing the strict requirements for employer-initiated termination.

Frequently asked questions (FAQ)