Dismissals In Germany: How Employers Can Help Minimize Financial Risks

Terminations – whether consensual or unilateral – are part of working life. But not all grounds for termination will hold up in a German labor court. If the court rules that a dismissal is invalid, the employer is obliged to reimburse the employee for any remuneration no longer paid after the end of the notice period based on a so-called default of acceptance. Given that it can sometimes take years for a legally binding court decision to be reached, this risk of compensation for default of acceptance very often adds up to large amounts. The employee's side often uses these economic