Dismissal For Operational Reasons, Social Selection, And Age Groups

According to the German Protection Against Dismissal Act (Kündigungsschutzgesetz ; KSchG), a dismissal is considered "socially justified"—and therefore legally binding—if it is contingent on "pressing operational requirements that are opposed to a continued employment of the employee in the firm" (i.e., if it is a dismissal for operational reasons).

A prerequisite is that the job of the dismissed employee has been eliminated without substitution, and no vacancy is available in the company which that employee could fill. When deciding to dismiss the employee, the employer must use the social-selection process—i.e., give due consideration to the employee's personal circumstances. In practice, however, the social-selection process, which is used only in the case of dismissals for operational reasons, is frequently administered incorrectly.