Imprisonment During Employment: When May Employers Terminate?

May an employee be terminated because they must begin serving a multi-year prison sentence? And what applies if there is a prospect of early release or of being permitted to work as a day-release inmate? The Stuttgart Labor Court recently addressed these questions in a current decision (judgment dated January 15, 2026 – 28 Ca 887/25). The decision illustrates that a lengthy term of imprisonment can have significant consequences for the employment relationship. At the same time, it provides important guidance on an employer’s duty to cooperate.

Facts

The plaintiff had been employed by an automobile manufacturer for several years. In 2024, he was finally convicted and sentenced to three years and three months’ imprisonment. He began serving his sentence in January 2025. Shortly thereafter, the defendant employer issued an ordinary termination of the employment relationship. The plaintiff challenged the termination in dismissal protection proceedings. In particular, he argued that a