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Termination for personal reasons, explained simply

Definition

Dismissal on personal grounds is based on characteristics or circumstances relating to the employee that permanently limit their ability to perform their duties – without this necessarily being their fault. Typical cases include: long-term illness, loss of a driving licence in the case of a professional driver, or lack of a work permit. The prerequisites are a negative prognosis for the future, a significant disruption to business operations, and a balancing of interests. The employer must first exhaust all less severe measures – such as a transfer or adaptation of the workplace.

Dr Nils Bronhofer

Specialist solicitor in employment law
Over 15 years’ experience in employment law

Reading time:  minutes • Last updated: January 2026

Classification under employment law

Dismissal on personal grounds relates to characteristics or circumstances pertaining to the employee that are beyond their control – such as illness, loss of a driving licence or lack of a work permit. A written warning is not usually required, as there is no fault on the part of the employee.


Distinction from related terms

Dismissal for conduct-related reasons: Dismissal on personal grounds is based on circumstances beyond the employee’s control, such as illness. Dismissal for conduct-related reasons is linked to controllable misconduct. 

Dismissal on grounds of illness: This is a typical case of dismissal on personal grounds. It does not constitute a separate category, but rather a specific instance within this ground for dismissal.

Practical tip

Unlike in the case of dismissal for conduct-related reasons, you do not need to have committed any misconduct in the case of dismissal for personal reasons. Nevertheless, it is worth checking: has the employer exhausted all less severe measures (transfer, work suitable for your condition)? Often, they have not. 

If there is no negative prognosis or if less severe measures are possible. A failure to weigh up the interests involved may also render the measure invalid.

No. As there is no culpable conduct, a warning is not usually necessary.

Yes, there are often grounds for challenge, for example regarding the notice period or the reasonableness of continued employment. It is best to seek advice from a solicitor who specialises in dismissals

Illness is the most common reason for dismissal on personal grounds, but it is not the only one.

Do you have any questions about your situation?

Questions about your own situation can often only be properly assessed within a legal context.

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