Written form on paper with original signature is legally required under § 623 BGB. Email, fax, or verbal resignation is invalid and has no legal effect.

• Standard statutory notice: Four weeks (to the 15th or end of a calendar month)

• Longer periods may apply if agreed in the contract or collective agreement

• During probation: Two weeks

No statutory severance is owed when an employee resigns voluntarily.

• If contract, company policy, or collective agreement provides for it

• If part of a negotiated separation agreement

• Accrued unused vacation days must be paid out or taken during the notice period

• Any outstanding salary, bonuses, or commissions must be paid

• You must ensure all social contributions are made up to the final day of work

Under § 626 BGB, you may terminate employment with immediate effect (for cause) if there's a serious breach of contract or trust that makes continued employment unreasonable, even during the notice period.

Common accepted grounds:

• Theft, fraud, or embezzlement

  • Willful damage to property

  • Severe insubordination

  • Workplace violence or harassment

  • Disclosure of confidential company information

Must be in writing with original signature (§ 623 BGB). Verbal or electronic termination is legally invalid.

Immediate termination—no notice period applies under § 626 BGB. You may also opt for ordinary termination with notice if misconduct isn't severe enough for immediate dismissal.

No statutory severance is owed in terminations with cause.

• Payment of any earned wages up to the termination date

• Payment of unused paid vacation (only if the dismissal isn't due to gross misconduct)

• Company property must be returned; final pay may be withheld until return is complete (if agreed in the contract)

In Germany, termination without cause refers to ordinary dismissal (ordentliche Kündigung) that follows the legal notice period and doesn't rely on immediate misconduct.

However, you must still have a legally justifiable reason under the Dismissal Protection Act (Kündigungsschutzgesetz – KSchG) if the employee:

• Has been employed longer than six months, and

• Works in a company with more than 10 full-time employees

• Operational Reasons (betriebsbedingte Kündigung): Business closure or downsizing, job redundancy, reorganization or restructuring

• Behavioral Reasons (verhaltensbedingte Kündigung): Repeated minor misconduct (e.g., tardiness), but only after formal warnings

• Personal Reasons (personenbedingte Kündigung): Long-term illness, lack of necessary qualifications, or loss of work permit

Arbitrary dismissal isn't permitted, even when "without cause" refers to general business reasons.

Must be in writing on paper with a wet signature (§ 623 BGB). Email, fax, or verbal notice is legally invalid.

Minimum statutory periods under § 622 BGB (based on employee's tenure):

No statutory severance pay required, unless:

• Agreed in employment contract or collective agreement

• Offered voluntarily in a settlement agreement

• Ordered by a court as part of legal dispute resolution

Under § 1a KSchG, if the dismissal is for operational reasons and the employee doesn't file a lawsuit within three weeks, you may offer severance equal to 0.5 month's pay per year of service.

• Payment for any unused vacation days (must be paid out or taken during notice)

• Final salary and prorated bonuses or commissions

• Continued contributions to social security and insurance until termination date

Must be in writing per § 623 BGB. Must be signed physically by both parties; digital or oral agreements are invalid.

Typically includes:

• Termination date

• Waiver of future claims

• Final compensation and benefits

• Confidentiality and return of property clauses (if applicable)

Not required in mutual termination. Unlike unilateral termination, mutual termination can occur without observing statutory or contractual notice periods. Termination can be effective immediately or on an agreed future date.

Not mandatory by law for mutual termination.

Severance (Abfindung) is common in practice but must be:

• Explicitly agreed in the termination contract

• Typically calculated using the formula: ½ monthly gross salary × years of service (common benchmark, not legally fixed)

• Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

• No gratuity system exists under German labor law.

Pro-rata bonuses

• Unused vacation pay (must be paid out if not taken)

• Retention of company assets (e.g., mobile, laptop, car) is optional

• Outplacement support or reference letters

• Waiver of non-compete clause and/or compensation for it, if applicable

There's no statutory notice needed when a fixed-term contract ends on its agreed date or purpose. The contract simply ends automatically upon expiry or achieving the agreed purpose.

There's no legal entitlement to severance simply because a fixed-term contract ends normally. German law doesn't automatically grant severance in this scenario unless the contract, a collective agreement, or a social plan provides for one.

• Unused holiday leave/paid leave
• Certificate of employment (Arbeitszeugnis)

If the contract allows early termination (ordinary notice), then the notice periods provided in the contract or by statutory law apply. If no early-termination clause is included, you can't unilaterally terminate early.

There's no automatic legal statutory severance merely by early termination of a fixed-term contract, unless provided by contract, collective agreement, or a social plan. However, in practice, severance may be negotiated.

• Pro rata benefits (unused leave, etc.): Employee should receive pro rata payments for benefits accrued (unused holidays, maybe bonuses if contract provides) up to the termination date
• Notice period pay

Final payment is usually paid with the next regular payroll cycle, unless otherwise agreed.

Delays may result in interest on arrears and potential legal action from the employee. Labor courts may award compensation for unlawful delay in final payments.