Majority of German Dismissals Lack an Explanation, New Analysis Reveals
Published on 06/17/2026 at 10:55 | Redaktion boerse-global.de
A new study by the Allright Group, which examined more than 3,000 termination cases, finds that employers failed to provide a concrete reason in nearly two out of three instances. Exactly 64.7 percent of dismissals came without a stated justification. Where reasons were given, operational layoffs accounted for 22.2 percent of cases and summary dismissals for 15.6 percent.
The typical person affected is 41.4 years old, has been with the company for just under five years, and is married (46.7 percent). Men represent a clear majority of those dismissed, at 57.4 percent.
The data also reveals a striking gender pay gap in both salaries and severance packages. The average monthly salary across the sample was 3,919.20 euros. Men earned 4,442.80 euros, while women received only 3,226.87 euros – a gap of 27.4 percent. Severance pay shows an even wider spread. The average payout came to 7,392.92 euros, but individual amounts ranged from as little as 12.50 euros up to 157,000 euros. An EY-Parthenon study published Tuesday put the unadjusted gender pay gap within DAX-40 companies at 10.7 percent, compared with roughly 16 percent in the broader economy.
When it comes to timing, Friday is the peak day for dismissals, accounting for 19.6 percent of all cases. More than half of employment contracts (53.9 percent) end on the last day of the month.
Geographically, North Rhine-Westphalia leads with 18.9 percent of terminations. The region is also home to a controversy at the DHL hub in Leipzig. The DPVKOM union alleges hidden job cuts, pointing to a drop in staffing from over 7,000 at the start of 2024 to around 6,000. DHL attributes the decline to natural turnover.
Two recent court rulings add legal risk for employees. The Schleswig-Holstein State Labor Court tightened rules on sick notes: a medical certificate that covers the exact notice period may lose its evidentiary value, allowing employers to stop wage continuation. Separately, the Saxon State Social Court warned that an incorrect division of child-raising periods can jeopardize unemployment benefits. If the necessary twelve-month period of compulsory insurance is missing, claimants receive nothing.
Despite the wave of dismissals, Germany's shortage of skilled labor persists. The KfW-ifo Skilled Labor Barometer for the second quarter of 2026 shows 21 percent of companies reporting a talent gap – down by half since 2022 due to economic weakness. The construction sector (33 percent) and services (25 percent) remain the most affected.
A separate policy change will squeeze widow's pensions starting July 1. The income test for the survivor's benefit becomes stricter. While nominal pension values rise 4.24 percent, the tax-free allowance is set at just 1,122.53 euros net. Any income above that threshold is deducted at a rate of 40 percent. Over 750,000 female recipients are expected to see smaller payouts.
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