When is a termination based on suspicion legal in Germany?

When an employer fires someone not because of proven misconduct, but because of a (serious) suspicion, questions arise: Whether such a “dismissal based on suspicion” is even lawful. And what level of evidence, investigation, and employee involvement is required before the termination can stand in court. The bar is high: A “dismissal on suspicion” is valid in Germany only under very strict conditions. Employees have strong rights, but have to challenge the termination in court within three weeks.

Key takeaways

• A dismissal on suspicion (Verdachtskündigung) is a special form of person-related termination: the employer does not prove the misconduct but relies on a serious suspicion that destroys trust.
• Strict requirements apply: (1) urgent, objective suspicion, (2) serious breach of duty, (3) employer must investigate all facts, (4) employee must be heard.
• The employer bears the burden of proof for all conditions – even though the underlying act is not proven.
• Employees can file an unfair dismissal claim within three weeks of receiving the notice. Filing a claim is standard practice in Germany. Courts often side with employees if the employer failed to investigate properly or skipped required steps.

What is a dismissal on suspicion?

A dismissal on suspicion (Verdachtskündigung) is a termination based not on a proven offence, but on an urgent, fact-based suspicion that the employee committed a crime or serious breach of duty. Because the suspected act severely damages the employment relationship’s foundation of trust, the employer may consider further cooperation unreasonable.

Many cases involve an extraordinary termination under § 626 BGB, but an ordinary (person-related) termination under § 1 KSchG is also possible.

By contrast, a “Tatkündigung” (dismissal for proven misconduct) requires the employer to prove the wrongdoing and is treated as a conduct-based dismissal.

Legal requirements for a dismissal on suspicion

The dismissal is only valid if all of the following additional conditions are met – on top of the usual rules for extraordinary or conduct-based terminations.

Urgent and objective suspicion

• There must be serious, specific and objective facts indicating a criminal offence or grave breach of duty.
• Mere assumptions, rumours or vague hints are insufficient.
• The suspicion must make continued employment objectively unreasonable.

Serious breach of contractual duties

• The alleged misconduct must be so significant that, if confirmed, it would justify immediate termination (e.g. theft, fraud, time-tracking manipulation).
• If continued employment until the end of the notice period is still reasonable, only an ordinary dismissal is possible.

Employer must investigate the facts

• The employer must exhaust all reasonable investigative steps to clarify the situation.
• This includes checking documents, questioning witnesses, securing evidence, etc.
• The aim: either confirm innocence or gather solid facts that justify the suspicion.

Mandatory hearing of the employee

• The employee must be given the opportunity to respond to the allegations before the dismissal is issued.
• The hearing must be concrete: the employee needs to know what exactly they are suspected of.
• Refusal to comment does not block the dismissal – but only if the employer properly informed the employee of the allegations in advance.

These safeguards exist to prevent innocent employees from being dismissed solely on guesswork.

Works council must be heard

Under § 102 BetrVG, the employer must consult the works council before issuing the notice. For a dismissal on suspicion, the employer must explicitly state that the dismissal is based on suspicion – not on a proven act.

Failing to do so makes the consultation – and therefore the entire dismissal – invalid.

FAQ – Dismissal on suspicion