Labour court jurisdiction in Germany explained

If an employee wants to challenge a dismissal, claim unpaid wages or enforce other rights from an employment contract, he may have to take the case to court. But before a lawsuit can even begin, one key question must be answered: Which labour 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.

Key takeaways

• Any legal claim should be filed with the correct labour court – both subject-matter and local jurisdiction must match.
• Labour courts have subject-matter jurisdiction for all disputes between employees and employers, from hiring to termination.
• Local jurisdiction depends on the place of work, the employer’s residence or registered office, or the branch where the employee worked.
• If a lawsuit is filed with the wrong local court, it will generally be forwarded to the competent court.

Local jurisdiction of the labour court

When an employee sues an employer, the first step is to identify which labour court is locally competent. Several options may apply.

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 (§ 21 ZPO).

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 (§ 35 ZPO).

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)

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.