Definition
In legal terms, senior staff are employees who are authorised to hire or dismiss staff independently, who hold power of attorney or general power of attorney, or who carry out tasks on their own responsibility that are essential to the company. They are not covered by the Works Constitution Act – the works council has no jurisdiction over them and does not need to be consulted prior to their dismissal. With regard to protection against dismissal, the following applies: the employment tribunal may, at the employer’s request, terminate the employment relationship without specific cause in return for severance pay. Whether someone is genuinely a senior executive does not depend on their title, but on their actual powers.
Specialist solicitor in employment law
With over 15 years’ experience in employment law
Classification under employment law
Senior executives (Section 5(3) of the Works Constitution Act (BetrVG)) are excluded from the works council and enjoy certain special privileges – for example, regarding protection against dismissal (Section 14 of the Employment Protection Act (KSchG): termination possible without specific cause). Who is a “senior executive” is determined not by their title, but by their actual decision-making powers.
Distinction from related terms
Employees: Senior executives are also employees, but occupy a prominent position with extended decision-making powers. Different provisions of employment law apply to them in some respects.
Managing directors: Managing directors are organs of the company and are generally not employees. Senior executives, on the other hand, remain in an employment relationship.
Practical tip
Many employees described as ‘senior’ are not legally classified as such. Check whether you have genuine decision-making authority or merely the appearance of it. The difference has significant implications for protection against unfair dismissal and membership of the works council.
