Employment Law in Germany.

Two Mandates, One Firm

Employment law reveals its full complexity in the concrete case. An employer who wants to terminate needs a different perspective from an employee who wants to challenge that termination — and a company hiring international skilled workers faces a third challenge that touches employment law and immigration law simultaneously.

We advise on all three tracks. Employers receive employment law advice oriented to business practice — contracts designed to reduce legal risk, terminations that withstand scrutiny, termination agreements that account for Sperrzeit risks on the employee side and structuring risks on the employer side. Employees receive the counterpart perspective — based on the KSchG and current BAG case law.

We do not advise employers and employees in the same matter. Where a conflict of interest exists, the mandate is not accepted.

For Employers

Employment Contracts and NachwG Compliance

The Nachweisgesetz (Verification Act on essential employment conditions, substantially amended in 2022 and partly digitalised from 2025) requires employers to document essential employment conditions. Since 2025, many notices can be provided electronically in text form if the statutory requirements are met; exceptions remain. The mandatory disclosures were significantly expanded in 2022 — to include probation duration, overtime arrangements, training entitlements, and applicable collective agreements. Failure to comply may create fine risks and evidentiary difficulties in disputes.

We draft employment contracts, structure fixed-term agreements under § 14 TzBfG, and design managing director service agreements (Geschäftsführer-Dienstverträge) that correctly reflect the corporate position.

Termination and Termination Protection

Employers who want to terminate need a sound basis. A conduct-based termination (verhaltensbedingte Kündigung) generally requires a prior relevant warning letter (Abmahnung) unless the circumstances — such as a serious breach of duty — make a warning unnecessary. An operational redundancy (betriebsbedingte Kündigung) requires a demonstrable business decision, no suitable alternative employment opportunity, and a social selection (Sozialauswahl) that withstands scrutiny. Labour courts examine both systematically. We advise employers before the termination is issued — not only after.

Warning Letters and Termination Agreements

A warning letter (Abmahnung) must describe the objectionable conduct specifically, express the expectation of future compliance, and announce the employment consequences of repetition — otherwise it may fail to serve its warning function in subsequent proceedings.

The BAG held in its decision of 7 February 2019 (6 AZR 75/18) that employees do not generally have a statutory right of withdrawal from employment termination agreements. At the same time, the BAG recognises the principle of fair negotiation: if this principle is breached, the agreement may be legally vulnerable and the employee may have to be placed as if the agreement had not been concluded.

Foreign Workforce — § 45c and Right-to-Work

Since 1 January 2026, § 45c AufenthG requires certain employers in Germany who conclude an employment contract with a third-country national whose residence or habitual residence is abroad for work in Germany to provide, in text form, information about advisory services under § 45b AufenthG, including the contact details of the nearest advisory centre, no later than the first day of work. Separately, employers must check before employment begins whether the residence title permits the specific employment and keep a copy or documentation of the permit for the duration of employment. If employment for which an employment-related residence title was issued ends earlier than planned, a notification to the immigration authority within four weeks may be required.

We advise employers on hiring, onboarding, and the ongoing employment relationship — both on the employment law side and on immigration compliance (EU Blue Card, fast-track procedure, ICT Card). Further detail is on our hire foreign skilled workers page.

For Employees

Termination Received — What Applies Now

The three-week deadline under § 4 KSchG runs from receipt of the written termination notice. Missing it generally means that the termination is deemed legally effective under § 7 KSchG, even if substantive objections might otherwise have existed. Reinstatement under § 5 KSchG is available only in narrow exceptional cases.

We assess whether a dismissal protection claim (Kündigungsschutzklage) is worth pursuing. The relevant factors are whether general termination protection under the KSchG applies — where the employment has lasted more than six months and the establishment regularly employs more than ten employees, with part-time employees counted pro rata — the grounds for termination, and the employer’s willingness to negotiate.

Termination Agreements and Severance

A termination agreement (Aufhebungsvertrag) is not a standard form to be signed without review. Signing one generally waives termination protection and can trigger a Sperrzeit on unemployment benefits under § 159 SGB III, regularly up to twelve weeks unless a recognised important reason applies. We review termination agreements for the adequacy of severance, the arrangements on release from duties and reference, and possible immigration consequences for non-German employees.

Severance pay (Abfindung) is not guaranteed by statute in most cases but is frequently negotiated in settlement of a Kündigungsschutzklage or in connection with a termination agreement. The common starting point in practice is half a monthly gross salary per year of service — but the actual figure depends on the facts, the legal strength of the termination, and the employer’s position. § 1a KSchG provides a statutory severance entitlement in specific operational redundancy cases — this is a special statutory route, not the general rule.

Topics and Detail Pages — Overview

The Employment-Immigration Interface

Employment law and immigration law intersect whenever foreign skilled workers are involved. A termination while a residence permit is in force can trigger deadlines within which the skilled worker may have to find a new qualifying position within a set period or face immigration consequences. The EU Blue Card does not automatically lapse on termination, but employer changes and periods without employment can trigger notification and assessment duties. The effect differs by permit type and should be checked before signing a termination agreement.

We advise across employment law and immigration law from one mandate. Further detail is on our hire foreign skilled workers page, EU Blue Card page, and the business immigration hub.

Hamburg — Employer and Employee Base

Hamburg’s labour market — with a strong owner-managed SME sector (Mittelstand), numerous international companies and subsidiaries, and a significant expat community — produces employment law mandates on both sides. We advise owner-managed SMEs and international subsidiaries on the employer side, and executives, managers, and skilled workers on the employee side.

How We Advise

Employment law questions often arise at critical moments — when a termination notice is received, when a termination agreement is presented, or when an employment contract is about to be signed. We advise employers and employees at the Hamburg location and Germany-wide on substantive employment law — in German and English; by prior arrangement also in Russian.

Advice by Alexander Kagan, Attorney at Law, admitted to the Hanseatic Bar Association Hamburg. As of: June 2026.

The contents of this page are for general information only and do not constitute legal advice. A mandate is established only upon express acceptance.