German Courts Redraw the Rules on Dismissals, Notice and Workplace Procedure
Published on 07/17/2026 at 04:43 | Redaktion boerse-global.de
Two high-profile rulings from Germany’s top labour and civil courts are forcing employers to rethink how they handle terminations, internal consultations and the delivery of dismissal letters.
The sharpest warning comes from the Bundesgerichtshof, or BGH, which ruled on 16. Juli that companies may not use a confirmation page after an online cancellation button to steer customers toward other options. In the case before the court, a fitness studio offered customers the chance to pause their contract instead of ending it. That, the judges said, is not allowed.
The confirmation page must focus only on the cancellation form and the confirmation button, the BGH held. Any extra references to suspending a contract or to other alternatives can influence the customer’s wish to cancel and breach § 312k BGB.
A separate decision from the Bundesarbeitsgericht, or BAG, deals with mass redundancies and the role of the works council. The court said that defects in how the works council is informed can be cured later during the consultation process. Normally, the employer must give the council full information. But if the council later expressly confirms that it was fully briefed, the consultation procedure is validly completed.
That point proved decisive in one case heard by the court: a female employee’s claim against her dismissal failed because the works council subsequently legitimised the level of information it had received.
Another line of case law is shaping how whistleblower information can be used in dismissal cases. When an employer bases a termination on information from a whistleblower, it must explain the dismissal reasons to the works council — but it does not necessarily have to reveal who made the report.
The confidentiality rule in the HinSchG generally takes priority. The employer may disclose the whistleblower’s identity or the original report only if the whistleblower has explicitly agreed. That keeps informants anonymous even from employee representatives.
The BAG also tightened the practical rules on serving dismissal notices at the start of May. An Einwurf-Einschreiben from Deutsche Post does not create a presumption that the letter actually reached the recipient.
The reason is technical: the postal worker records the delivery on a scanner before the item is physically dropped into the mailbox. Legal specialists therefore advise employers to use other methods, including hand delivery with witnesses, delivery by their own messengers or service by a court bailiff.
Beyond the courtroom, several other labour and compliance deadlines are approaching for HR departments and works councils. The next regular Betriebsratswahlen will take place from the 1. März 2026. Specialists say the law still has a modernisation gap because it does not provide for online voting or permanently virtual meetings.
Working time is also set to become a bigger issue after a EuGH ruling from Oktober 2025. Employer-ordered group transport from a base to an assignment location counts as full working time. Since the 1. Januar 2026, the minimum wage has been 13,90 Euro brutto pro Stunde, which could trigger substantial back pay claims.
On 10. Juli 2026, the Bundesrat approved the new Gebäudemodernisierungsgesetz (GModG). Among other things, it introduces an obligation from 2028 to produce an ecological balance sheet for buildings with more than 1.000 square meters.
Training policy is moving too. For ver.di members, scholarships for AI certificates will be awarded from the 27. Juli 2026 to help build technological skills in companies.
Today, meanwhile, chambers of industry and commerce are holding an exchange round on the new EU packaging regulation, the PPWR. It will take effect on 12. August 2026 and imposes wide-ranging obligations on companies.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
