Dismissal due to workplace bullying: legal consequences for both sides

Workplace bullying (or “mobbing” in Germany) is unfortunately still common – even though awareness has grown in recent years. Employees who systematically harass, humiliate, or discriminate against colleagues risk serious consequences, including dismissal due to workplace bullying. Victims also face difficult choices: staying, going on sick leave, or resigning all have financial consequences. Our guide explains the legal consequences of workplace bullying for both victims and bullies, especially the requirements for a legal dismissal for bullying at work.

Termination for bullying at work

Key takeaways:

What is workplace bullying?

German Courts understands bullying as systematic hostility, harassment, or discrimination by colleagues or managers. For conduct to qualify as workplace bullying, it must reach a certain intensity and persist over time; isolated events are normally not enough. 

Examples of workplace bullying include

• constantly ignoring the affected employee
• repeated malicious pranks that harm the victim
• deliberately spreading rumors to damage their reputation
• ongoing insults or degrading comments
• systematically obstructing their work
• cyberbullying through humiliating posts in work-related networks

All of these are typical patterns of workplace harassment at work. Whether specific conduct is truly bullying must always be assessed based on the concrete circumstances of the individual case. In a serious dispute, the victim carries the burden of proof and has to present specific facts that show a pattern of workplace bullying.

Rights of bullying victims

As mentioned above, workplace bullying means repeated and targeted hostilities with a certain intensity by colleagues or managers. Affected employees have several options for action, both outside and inside the company:

External support

The affected employee can first seek external support from trade unions, counseling centers, or employee advice services if they fear that their job is at risk. Trade unions can often establish contact with works councils and help to develop practical solutions within the company.

Internal complaint options

Internally, the bullying victim can turn to the employer or the works council. They have a formal right to complain to the works council under Section 85 Works Constitution Act (BetrVG) and to the employer under Section 84 BetrVG. The employer must examine the complaint and, if it is justified, take action to remedy the situation. If the complaint is submitted to the works council, the works council must work with the employer to achieve a solution.

Employer’s duty of care

The victim can also address the employer directly. The employer has a duty of care towards all employees and must protect the affected employee and take necessary measures. These measures must be proportionate and reasonable for the employer. However, they must be effective enough to stop harassment at work.

This duty of care includes creating a healthy work environment and designing workflows so that intimidation and hostility do not arise in the first place. If bullying nevertheless occurs, the employer must actively intervene in the specific case. What is “appropriate” depends entirely on the individual situation, the severity of the bullying, and the roles of the people involved.

Further options for bullying victims

Only if the previous steps fail do the following options come into play as a last resort. Victims should keep a careful record of incidents, dates, witnesses, and any steps taken. Good documentation often decides whether a case can be proven.

Transfer request

A transfer request to another position because of bullying is often accepted by the employer (but circumstances matter). Sometimes, a change of team, supervisor, or location is enough to de-escalate a conflict that has turned into workplace harassment.

Damages and compensation for pain and suffering

If the employer violates their duty of care and fails to take any or sufficient measures, employees can claim damages. For example, for treatment costs or lost earnings, and compensation for pain and suffering in court. The same applies if managers ignore clear indications of bullying and do not intervene. However, the victim must carefully weigh this option. Court proceedings can severely strain or destroy an ongoing employment relationship.

Another practical problem is again the burden of proof. The victim must set out in detail who did what and when. Also, prove the link between the bullying and the harm, and where the employer failed to act. It is usually wise to consult an employment lawyer at an early stage.

Sick leave

Workplace bullying can cause serious health problems, from sleep disorders to depression. In such cases, victims can obtain a medical certificate and stay off work. For continued pay, the medical reason is what matters, not the cause.

However, this step needs to be taken carefully. If bullying continues and sick leave becomes frequent or long-term, the employer may consider dismissal for health reasons. The main goal should therefore be to tackle the bullying itself, not just treat its symptoms.

Resignation

Victims could, of course, resign at any time by observing the statutory or contractual notice period. In particularly serious cases of workplace bullying, an extraordinary resignation without notice may be possible. If continuing to work is unreasonable.

However, before resigning, bullying victims should think carefully about the consequences for unemployment benefits and future career prospects. In many situations, it is safer to stay employed while enforcing your rights than to quit in frustration.

Workplace bullying and consequences for the bully

Employees who bully colleagues at work face serious legal consequences under employment law. Workplace harassment is a breach of contractual duties and can escalate quickly if the behavior continues despite clear warnings.

• The employer can first issue a formal warning to make it clear that the behavior is unacceptable.
• If the behavior does not change, the employer can consider transferring the employee to another position.
• In serious cases, the employer can terminate the employment for conduct-related reasons. Or, in extreme situations and after a formal warning, issue a termination without notice (summary dismissal) due to workplace bullying. Before taking such steps, the employer must make sure that actual bullying has taken place. While the victim provides the initial facts, the employer is obliged to investigate any indications or complaints and to thoroughly examine the allegations. This usually includes talking to the parties involved as well as to uninvolved colleagues. To clarify the facts and avoid unjustified accusations.

Warning as the first measure

Bullying at work is completely unacceptable and a serious breach of contractual duties. Which duties are violated depends on the individual case. They can range from insults and coercion to bodily harm and serious psychological damage to the victim.

In many cases, the employer will first issue a warning. Bullying regularly disturbs the peace in the workplace and negatively affects business operations. The warning makes it clear that the behavior is unacceptable and that further violations may result in dismissal.

The warning must describe the specific misconduct in detail. Where a warning is a prerequisite for dismissal, it must be “relevant”, meaning that the conduct described in the warning is similar to the conduct that later forms the basis for dismissal. A warning may be dispensable if the bully has seriously violated the victim’s dignity, honor, or health. The more intense the workplace harassment, the more severely the trust between employer and bully is damaged and the less necessary a prior warning becomes.

Transfer as the second step

Conflicts at work can often be resolved by physically separating the parties. In bullying cases, it may be necessary to transfer the responsible colleague to another team, department, or location. In some situations, the employer may even be obligated to intervene by transferring the bully in order to protect the victim.

A transfer is not purely disciplinary and is usually considered only after a prior warning. If the transfer involves a permanent change of work location and the employment contract does not allow this unilaterally, the employer may have to issue a notice of change (Änderungskündigung) so that the employee can accept the modified conditions or leave.

Conduct-related dismissal due to workplace bullying

Misconduct at work, including bullying, can result in a conduct-related dismissal due to workplace bullying. In that case, the employment relationship ends at the end of the applicable notice period. To defuse the situation, the employee is often released from duty until the end of the notice period while continuing to receive pay.

• Typically, such a dismissal is only permissible after a prior warning:
  • The employer must be able to assume that the disruptive behavior will continue in the future.
  • They therefore cannot rely solely on past misconduct but must also make a prognosis about future conduct.
  • The warning serves as a clear warning shot and control mechanism.
• If the behavior continues after the warning, this strengthens the negative prognosis and allows the employer to issue a conduct-related dismissal.

In particularly serious cases of misconduct, the employer may be allowed to dismiss even without a prior warning, especially if continued cooperation has become unreasonable for the company and other employees.

Termination without notice due to workplace bullying (summary dismissal)

Workplace bullying can severely impact the victim’s mental and physical health and violate their personality rights. As bullying escalates, the trust relationship between the employer and the bully deteriorates further.

If the bully does not change his behavior despite being fully aware of the situation, the employer may find it unreasonable to continue employing them until the end of the ordinary notice period. In such cases, the employer can issue an extraordinary termination (without notice period) due to workplace bullying. In practice, however, this is rare and usually reserved for particularly extreme cases with clear proof.

Prospects of success: burden of proof

Whether the employer’s dismissal of the bully is ultimately upheld depends largely on whether the allegations can be proven. In dismissal disputes, the employer bears the burden of pleading and proof. They must show and prove both serious misconduct and a negative prognosis, meaning a likelihood that the misconduct will continue despite a warning.

• This means that the success of a dismissal often stands or falls with the strength of the evidence. If the employer can present multiple credible witnesses who confirm serious bullying incidents or clear written evidence, the employer’s prospects in court are usually good, and the employee often leaves the company without severance pay.
• If bullying allegations are hard to prove or concern only minor incidents, the employer may struggle to defend the dismissal, and the court might order reinstatement and continued pay.

If you receive a dismissal due to workplace bullying, you usually have only three weeks to file a claim for protection against dismissal with the labor court. Challenging a dismissal is standard practice in Germany and far from unusual, and well-prepared claims with solid documentation often lead to better outcomes, from continued employment to a negotiated severance.

To avoid long and costly litigation, employers often propose a settlement. This commonly involves terminating the employment relationship by agreement and paying the employee a severance package, even when the employer believes the dismissal is valid.

Unjustified bullying allegations against employees

If an employee is wrongly accused of bullying, they can also seek external help, for example from a trade union or a specialized counseling center. Internally, they have the right to contact the employer and explain their position. They can file a complaint with the works council or the employer. The employer and the works council must clarify the facts and decide on the complaint. If the employer imposes measures such as a warning, the affected employee can submit a written counterstatement for their personnel file.

In case of transfers or dismissals based on unjustified bullying allegations, the employee should obtain legal advice and, where available, support from a trade union or legal tech provider. As with victims’ claims, unjustified bullying allegations can only be refuted with concrete facts, documents, and witnesses, so keeping emails, notes of meetings, and performance reviews is crucial.

If an employee receives a conduct-related dismissal based on unjustified bullying allegations, they can file a wrongful dismissal claim with the labor court within three weeks of receiving the notice. Filing such a claim is routine in Germany and is generally seen as a normal way to clarify disputes, not as an act of hostility against the employer.

• If you are worried about legal costs in a bullying dispute, check whether you already have legal expenses insurance that covers employment cases and observe possible waiting periods before any dismissal becomes imminent.
• In some constellations, alternative fee models or legal tech offers can reduce your risk, so ask early about cost options before deciding whether to negotiate, resign, or take your case to court

Severance pay in case of dismissal due to workplace bullying

There is no automatic right to severance after a dismissal due to workplace bullying. Whether a severance payment is made depends heavily on the circumstances of the individual case and the litigation risks on both sides.

If the employer has credible proof supporting the bullying allegations, the dismissal is more likely to stand in court and the chances of receiving a severance payment are usually lower. In case bullying is particularly serious and well-documented, the dismissal will often be considered justified, which again reduces the likelihood of severance. If the employee was warned several times before being dismissed, this also strengthens the employer’s position and weakens the employee’s leverage in negotiation.

In practice, however, many severance packages are the result of negotiations or court settlements. Employees facing dismissal due to workplace bullying should therefore seek early advice on their chances and deadlines. With a realistic strategy and good evidence, a negotiated severance can often be achieved even where the employer claims that bullying was clearly proven.

Frequently asked questions (FAQ)