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Reasons for termination explained simply

Definition

The German Unfair Dismissal Act recognises three grounds for dismissal: Personal grounds – the employee is permanently unable to perform their duties, for example due to illness or a lack of qualifications, through no fault of their own. Conduct-related – the employee culpably breaches their duties, for example through repeated absences or refusal to work; a written warning is usually required in such cases. Operational reasons – the job is permanently made redundant as a result of a business decision. In all three cases, the dismissal must be proportionate and all less severe measures must have been exhausted beforehand.

Dr Nils Bronhofer

Specialist solicitor in employment law
With over 15 years’ experience in employment law

Reading time:  minutes • Last updated: January 2026

Classification under employment law

The KSchG recognises three grounds for dismissal: (1) personal reasons (e.g. illness), (2) behavioural reasons (e.g. breach of duty) and (3) operational reasons (e.g. redundancy). In legal proceedings, the employer bears the burden of proof regarding the grounds for dismissal.


Distinction from related terms

Social selection: In the case of redundancies, a selection must be made from among comparable employees. The ground for dismissal, on the other hand, describes the cause of the dismissal itself.

Warning: In the case of dismissals for conduct-related reasons, a prior warning is usually required. The reason for dismissal alone is often insufficient without a prior warning.

Practical tip

Pay attention to the reason given in the letter of termination – or the absence of any reason at all. An employer is not, in principle, obliged to state the reason in the letter. However, they must prove it in court. Without reliable evidence, they will lose the case. 

The reason must be of such gravity that it would be unreasonable to expect the employment relationship to continue. This is assessed on a case-by-case basis.

Only if the Employment Protection Act applies. Without the Employment Protection Act, no specific reason is required, but the dismissal must not be arbitrary.

This usually applies to dismissals on disciplinary grounds. It is intended to give the employee the opportunity to change their behaviour.

Further grounds may be added during the proceedings, provided they were already in existence at the time the notice of termination was given.

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