Ordinary termination of the employment contract

An ordinary termination (ordentliche Kündigung) is just that: An employment termination observing legal notice periods. Unlike immediate dismissal, employment does not end when the employer or employee terminates the employment. It ends only once the notice period has expired. It’s the “normal” way to end a job, and both employer and employee can use it. However, legal requirements apply, especially for employers. Our article explains what formal requirements apply, how notice periods work, and what to do if you receive a termination notice.

What is an “ordinary” termination?

Ordinary termination is a unilateral declaration by which either employer or employee ends existing employment while observing contractually or statutorily defined notice periods. Ordinary termination ends permanent employment when the notice period expires. In contrast, immediate or extraordinary dismissal ends employment with immediate effect.

In fixed-term employment, ordinary termination is only possible when agreed in the employment or collective agreement. Otherwise, fixed-term employment automatically ends through expiration or purpose fulfillment (substitution, project completion).

Ordinary termination by employer

There are a few questions one should ask when receiving an ordinary termination:

• Does “special dismissal protection” exist (maternity protection, parental leave, etc.)?
• Does the Dismissal Protection Act apply?
• If yes, does ordinary termination meet the Act’s requirements?
• If no, what requirements must employers meet for dismissals outside the Act?
• What formal requirements must employers fulfill when issuing ordinary termination?

We answer all these questions in the following sections.

Special dismissal protection

When “special dismissal protection” exists, employers generally cannot issue ordinary termination. Here are the most important cases when special dismissal protection applies:

• Maternity protection: Pregnant employees and women up to four months postpartum generally enjoy protection from (unfair) dismissal. Exceptions exist only when competent authorities previously approved dismissal in special cases, such as facility closures.
• Parental leave: From the time parental leave is requested – earliest eight weeks before it begins – and during parental leave, dismissal is impermissible.¹ Here too, competent authorities can approve dismissal in exceptional cases.
• Care leave: During the announcement and implementation of care leave or short-term work absence, dismissal is prohibited. Competent authorities must approve in exceptional cases.²
• Works council members and similar functions: Works council members, youth and apprentice representatives, election board members, and candidates enjoy special dismissal protection during their term and one year afterward. Dismissal is only possible for just cause and with works council approval.³
• Severely disabled persons: Dismissing severely disabled persons requires prior approval from the inclusion/integration office.
• Vocational training relationships: After probation, an ordinary termination by the employers is not legally possible. The only way to terminate a training relationship is “without notice”(for cause).⁴
• Data protection, emission control, and waste officers enjoy special protection from ordinary dismissal during their term and for one year afterward. Dismissal is only possible for just cause⁵.

General dismissal protection under the Dismissal Protection Act

Whether an employer needs a specific reason to give ordinary notice depends on the legal framework — especially on whether the Dismissal Protection Act applies. This law shields employees from unfair dismissals and sets out the conditions under which a regular termination is legally valid.

Dismissal Protection Act application

The Dismissal Protection Act applies to employer’s ordinary termination when these requirements are met:

• Six months’ tenure: Employees must have worked continuously in the same facility or company for at least six months.⁶ The six months must be completed when dismissal is received.
• Not a small business (more than 10 employees): The facility must regularly employ more than ten employees (excluding apprentices).⁷ Part-time workers count proportionally:
  • Up to 20 hours/week as 0.5 employee
  • Up to 30 hours/week as 0.75 employee
  • Over 30 hours/week as 1.0 employee

When both requirements are met, ordinary termination falls under Dismissal Protection Act protection.

Requirements under the Dismissal Protection Act

Ordinary termination under the Act is only permissible when socially justified. Three dismissal types exist: personal, conduct-based, or operational dismissal:

• Personal dismissal: Employees cannot fully perform contractual obligations due to personal suitability/ability. Examples: illness-related dismissal, missing work permit, missing driver’s license for truck drivers. Employers must prove: (1) Employees cannot fully meet contractual obligations in future due to lack of personal suitability/abilities (negative prognosis). (2) Lack of personal suitability leads to significant operational/economic impairment. (3) Continuing employment is unreasonable for employers. They must first take milder measures, like continued employment in another position (balancing interests).
• Conduct-based dismissal: Conduct-based dismissal is based on culpable, controllable employee behavior (example: unexcused absence, workplace alcohol consumption, tardiness, etc.). Employers must prove: (1) Employees violated contractual duties. (2) Do (relevant) warnings exist? Are there milder means to eliminate future contract disruption? (3) Interest balancing: Is dismissal appropriate? When weighing all interests, is continuing employment unreasonable?
• Operational dismissal: Operational dismissal is based on urgent operational requirements leading to affected job elimination. Examples: lack of orders, restructuring, or facility closures. Employers must prove: (1) Urgent operational requirements leading to permanent elimination of affected employee’s employment possibility. (2) No alternative employment possibility exists in the facility or available positions in the company (no milder means). (3) Social selection: If several comparable employees exist in the facility, employers must conduct social selection. Criteria: tenure, age, dependents, severe disability.

Dismissal without Dismissal Protection Act

When the Dismissal Protection Act doesn’t apply – for instance in small businesses with at most ten employees or for employees with less than six months’ tenure – no social justification under the Act is necessary. Nevertheless, numerous protective provisions exist that regulate “ordinary terminations” by the employer:

• Employers must observe general dismissal rules regarding written form and notice periods even outside the Act.
• Employers may only issue an extraordinary termination (without notice) for just cause.
• All special dismissal protection regulations apply (maternity protection, parental leave, severe disability, etc.), dismissal protection for business transfers.
• The General Equal Treatment Act applies, protecting against discrimination.
• If a works council exists, it must be properly consulted before dismissal. Otherwise, dismissal is invalid.

Formal requirements for ordinary termination

Strict formal rules must be observed for ordinary termination to be valid. These include written form, provable receipt of the dismissal letter, and observing applicable notice periods. Those disregarding these requirements risk dismissal invalidity. Below, we explain the three most important points in detail.

Written form

For ordinary termination, both employers and employees must always observe written form – the “termination letter”. Dismissal is only valid with such a termination letter – meaning employers must personally sign it. Therefore, dismissals issued verbally, via email, or SMS are invalid. Signature stamps or “DocuSign signatures” are also insufficient.

Receipt of dismissal

A termination letter is deemed to be received when it reaches the recipient so they can read it under normal circumstances. This occurs, for example, when the dismissal letter is placed in the mailbox and the recipient typically finds it there. However: in disputes, employers must prove that and when a termination letter was actually received. This is practically impossible with regular mail. More in our article on dismissal receipt.

Observing notice periods

For ordinary termination, applicable notice periods must be observed:

• Periods can result from employment or collective agreements.
• When different periods exist in employment contracts, collective agreements (or law), the favorability principle applies – meaning the more favorable period applies for employees. The longer period is typically more favorable for employees since they have greater interest in later employment termination. When individual cases cannot determine what’s more favorable, the collective agreement regulation applies.
• Without specific agreement, statutory notice periods per Section 622 BGB apply. Basic notice period is four weeks to the 15th or month’s end. For employers, notice periods extend according to employee tenure:

Length of employment	Notice period
From 2 years	1 month
From 5 years	2 months
From 8 years	3 months
From 10 years	4 months
From 12 years	5 months
From 15 years	6 months
From 20 years	7 months

What to do when receiving an ordinary termination

When employees receive ordinary termination from employers, they should observe these important steps:

• Employees should review the dismissal letter or have an employment attorney review it. Check for proper receipt, written form, proper representation, and special dismissal protection. Errors can lead to an invalid dismissal. A specialized employment attorney clarifies whether legal protection insurance covers costs.
• Don’t sign anything upon or immediately after receiving dismissal!
• Employees should contact the works council. The works council can communicate whether consultation occurred, what additional information they have, and whether objection to dismissal exists.
• Employees must timely register as job-seeking and unemployed with the employment agency. This avoids benefit suspensions – meaning delayed and reduced unemployment benefit payments.
• Employees must clarify within three weeks of receiving dismissal whether to file a dismissal protection lawsuit. This can only occur within a three-week deadline from receipt. Successful lawsuits can lead to continued employment or negotiations about termination with severance payment.
• Request an employment reference if applicable.

Ordinary termination by employee

Employees have the right to terminate employment without stating reasons. Proper employee ordinary termination requires observing certain formalities:

• Notice period: Employees must observe their notice period.
• Written form requirement: Dismissal must be in writing. Employees must personally sign it on paper. To ensure you can prove your termination, you should send your termination letter by registered mail – or directly hand it over to HR, and have them confirm receipt.

3 Tips before quitting your Job

• Avoiding benefit suspension: In case of resignation, employees should ideally have a binding job offer to avoid the 12-week unemployment benefit suspension.
• Observe contractual regulations: Be aware of all the obligations in your employment contract. Special clauses, like repayment clauses for training costs, can complicate resignation.
• Immediate dismissal: Only when very important grounds exist (long-term missing salary payments, workplace safety violations, permanent overtime violations, insults, or mobbing) may employees terminate immediately.

Frequently asked questions

1. Section 18 BEEG ↩︎
2. Section 5 PflegeZG ↩︎
3. Section 15 KSchG ↩︎
4. Section 22(2) BBiG ↩︎
5. Section 6 BDSG, Section 58(2) BImSchG, Section 60(3) KrWG ↩︎
6. Section 1(1) KSchG ↩︎
7. Section 23(1) KSchG ↩︎