Labour court jurisdiction in Germany explained

If you want to challenge a dismissal in Germany, you must file your claim with the competent labour court within three weeks. The first step is determining which court has jurisdiction. German law distinguishes between subject-matter jurisdiction (which type of court) and local jurisdiction (which specific court). This guide explains both and shows how the labour court system is structured across Germany.

Local jurisdiction of the labour court

When an employee sues an employer, the first step is to identify which labour court is locally competent:

Labour court at the place of work

The primary rule: the competent court is the one in whose district the employee usually performed their work or last performed it.

Examples:

• Full-time office role → location of the office
• Home office only → location of the home office workstation
• Field staff / sales reps → location where the activity is centred
• Airline crew → home base airport

Labour court at the employer’s residence

If the employer is a natural person (e.g. sole trader), the court at the employer’s place of residence is competent

Labour court at the registered office of the company

If the employer is a legal entity (GmbH, AG, OHG etc.), the court at the registered office has jurisdiction. 

Labour court at the location of a branch office

If the dispute relates to a specific branch or local establishment, the labour court responsible for that branch is competent.¹

Choice between several competent labour courts

If multiple courts are possible, the employee may choose freely. Once the lawsuit is filed, that choice becomes binding.²

A practical tool: the federal justice portal allows employees to search the competent labour court by entering a postcode.

Consequences of filing with the wrong labour court

If the claim is submitted to a court without local jurisdiction, the court must check this ex officio and forward the case to the correct labour court.

Subject-matter jurisdiction of the labour courts

Labour courts deal exclusively with disputes listed in the Labour Court Act (ArbGG). Two types of procedures exist:

• Judgment procedure (Urteilsverfahren): Standard employee–employer disputes. First hearing is a conciliation hearing; if no settlement is reached, the chamber issues a judgment.
• Decision procedure (Beschlussverfahren): Mainly disputes between works council and employer. A settlement attempt is possible, but the chamber issues a decision instead of a judgment.

Examples of cases in judgment procedure

• Dismissal protection claims
• Permanent employment claims (fixed-term review)
• Claims on continued employment after contract challenge
• Wage and bonus claims
• Vacation pay and vacation compensation
• Correction or issuance of work references
• Removal of warnings from personnel file
• Company pension disputes
• Non-compete disputes (damages / compensation)

Examples of cases in decision procedure

• Co-determination rights of works council
• Employer’s duty to bear works council costs
• Objections to works council elections
• Speaker committee disputes (senior managers)

International Jurisdiction of German Labour Court

If an employee works in Germany, they can generally sue their employer in Germany – even if the employment contract is formally with a foreign company (e.g., the Netherlands). The EU Regulation on Jurisdiction (EuGVVO) provides the legal basis for this, but it only applies to EU member states. If the company is based in another EU country, such as France or Austria, jurisdiction is determined according to the EuGVVO. If the company is based outside the EU, for example in the USA, jurisdiction is determined under German law.

Principle:³ Generally, the competent court is at the place where the employee normally performs their work, regardless of the nationality of the employee or employer.

Examples:

• Contract with a Dutch parent company, but the employee works in Germany
• US company without a German subsidiary employs staff in Germany
• Work for a German branch of a foreign company

Exceptions:⁴ In certain cases, a court in another EU member state can have jurisdiction, e.g., if multiple workplaces are relevant or there are strong connections to another location.

Choice of jurisdiction:⁵

• Jurisdiction can be agreed upon in the employment contract between employer and employee
• Such agreements must not disadvantage the employee

Choice of law in the contract:

Even if foreign law is chosen (e.g., Dutch law), employees working in Germany are usually still protected by mandatory German labor laws, for example, regarding dismissal protection.

Structure of the labour court system in Germany

All labour disputes – individual or collective – must be brought before the labour court system, which has three levels:

First instance: Labour courts

All cases start here. If a party loses, they may appeal under certain conditions.

Second instance: Higher labour courts (LAG)

Each federal state has at least one LAG. They hear appeals from the first instance.
Examples: Stuttgart, Munich, Berlin, Frankfurt, Düsseldorf, Hamburg, Hannover, Kiel, Erfurt etc.

Third instance: Federal Labour Court (BAG)

Located in Erfurt. Hears appeals on points of law (Revision). Its decisions are final.

Frequently asked questions (FAQ)

Even if you file at the wrong court, the three-week dismissal deadline stays protected – but only if you file in time.

1. § 21 ZPO ↩︎
2. § 35 ZPO ↩︎
3. Art.4 EuGVVO ↩︎
4. Art.5 EuGVVO ↩︎
5. Art. 25 EuGVVO ↩︎