Dismissal Without a Reason: Is That Allowed?

The short answer: giving reasons and having a ground are two different things

You’re holding a dismissal letter that doesn’t say a word about why you’re being dismissed. Two or three sentences, a signature, done. The first reaction is almost always the same: "That can’t be legal, surely they have to tell me why." Here, two questions get mixed up that have nothing to do with each other legally.

Question 1: Does the dismissal letter need to state a reason? For an ordinary dismissal, no. The law doesn’t require a justification for it. It demands written form with a handwritten signature (§ 623 BGB), nothing more. A dismissal letter without a reason is therefore not invalid merely because it lacks a justification.

Question 2: Does your employer need to have a valid ground? This is actually the important question, and the answer is often yes. If the Protection Against Dismissal Act (KSchG) applies, meaning the company regularly employs more than ten people (§ 23(1) KSchG) and your employment has lasted longer than six months (§ 1(1) KSchG), then the dismissal must be socially justified. It needs a ground related to your person, your conduct, or operational needs (§ 1(2) KSchG). Without that, the dismissal is invalid.

The catch with question 2: this invalidity doesn’t apply automatically. It has to be asserted before the labour court, and specifically within 3 weeks from receipt of the written dismissal (§ 4 KSchG). If you let this deadline pass, the dismissal counts as valid from the start under § 7 KSchG. Even a completely groundless one. This is where most cases are lost in practice, before they even get going.

Key takeaway: No reason in the letter doesn’t mean the dismissal will hold up. It just means you don’t yet know what it’s based on. And above all, it doesn’t mean you have time.

Why no reason needs to be in the dismissal letter (and why that’s good for you)

German employment law cleanly separates the declaration of dismissal from its justification. The declaration is a one-sided right to shape the legal relationship: it must be clear, written, and signed. The justification, on the other hand, only becomes relevant once you challenge the dismissal. Your employer only has to lay their cards on the table during unfair dismissal proceedings.

This is exactly where an advantage lies that many people overlook. During proceedings, your employer carries the burden of presentation and proof for the facts meant to socially justify the dismissal (§ 1(2) sentence 4 KSchG). They must set out which ground they relied on and prove it. They are bound to the circumstances that already existed at the time the dismissal was received. Whatever occurs to them later can only be added to a limited extent.

So if they write nothing, they don’t reveal anything to you, but they also gain nothing from it. They haven’t secured any advantage, only postponed the point at which they must deliver. And the later they deliver, the harder it becomes to prove the ground already existed back then. You can read how this process works under Unfair Dismissal Claim.

The exceptions: when a justification is actually required

There are situations where the law explicitly requires a justification:

• Vocational training relationship after the probationary period: Under § 22(3) BBiG, the dismissal must be in writing and state the reasons for dismissal. Without that justification, the dismissal of the training relationship is invalid.
• Pregnancy and maternity protection: If the authority has exceptionally declared a dismissal permissible, your employer must state the permitted ground for dismissal in the dismissal letter (§ 17(2) sentence 2 MuSchG).
• Parental leave: Here too, a dismissal is only possible with official approval of permissibility, and the dismissal requires written form and the statement of the permitted ground for dismissal (§ 18 BEEG).
• Summary dismissal on request: Under § 626(2) sentence 3 BGB, the party giving notice must tell the other party the ground for dismissal in writing without delay, if asked. Importantly: the dismissal remains valid even if they don’t do this. This duty to inform isn’t a condition for validity, but breaching it can trigger damages claims and is treated as an indicator in proceedings. Request the information anyway, it pins your employer down.
• Collective agreements: A collective agreement can impose a duty to give reasons, and if the dismissal breaches it, it can be invalid. Check whether a collective agreement applies to your employment relationship.

Note: Even outside these cases, you can of course ask for the reason in writing. For an ordinary dismissal, you generally have no enforceable right to an answer, but a reply pins your employer down, and a missing or evasive answer at a small business can be an indicator relevant to arbitrariness or retaliation. Don’t rely on it, though: the 3-week deadline keeps running while you wait for a reply.

When your employer really needs a ground: the two thresholds

Whether your employer needs a ground for dismissal depends on two conditions that must both be met:

1) The waiting period: longer than six months

The Protection Against Dismissal Act only applies once the employment relationship has existed without interruption for longer than six months at the same establishment or company (§ 1(1) KSchG). This is the so-called waiting period. It has nothing to do with an agreed probationary period, even though the two often coincide: the probationary period only affects the shortened two-week notice period (§ 622(3) BGB), the waiting period affects protection against dismissal itself. More on this under Probationary Period and Dismissal During Probation.

2) Company size: regularly more than ten employees

Under § 23(1) KSchG, the law doesn’t apply to companies with ten or fewer employees on a regular basis. Headcount is weighted proportionately: part-time staff working up to 20 hours a week count as 0.5, up to 30 hours as 0.75, above that as 1.0. Trainees are disregarded. What matters is the regular number of staff, not a snapshot on any given date.

Important, the legacy rule: if your employment relationship began before 1 January 2004, the old threshold of more than five employees still applies to you. This requires that more than five of the "legacy employees" employed back then are still at the company today. If you’ve been there a long time, this point is definitely worth checking.

If you fall into one of the first two rows, that doesn’t mean you have no chance at all. What’s still possible then, you can read in detail under Dismissal Protection at Small Companies.

Not sure which row applies to you? Our severance calculator classifies your case in 2 minutes and shows you a realistic order of magnitude.

The three permitted grounds for dismissal at a glance

If the Protection Against Dismissal Act applies, § 1(2) KSchG recognises exactly three categories your employer can draw on. A fourth ground doesn’t exist. Everything they put forward in proceedings must fit into one of these three drawers, and each has its own strict requirements.

Dismissal related to your person

This relates to characteristics or abilities you can’t control: losing a required licence, permanent incapacity to perform, lacking suitability. The practically most important sub-case is dismissal due to illness, which requires a negative health prognosis, a significant operational impairment, and a balancing of interests. Details under personal grounds dismissal and dismissal due to illness.

Dismissal related to your conduct

This requires a controllable breach of duty: unpunctuality, refusal to work, violations of company rules. A relevant warning notice (Abmahnung) is usually required beforehand, so you have a chance to change your behaviour. Without one, the dismissal often fails for that reason alone. More under conduct-related dismissal and warning notice before dismissal.

Dismissal for operational reasons

This relies on urgent operational needs: declining orders, restructuring, a role being eliminated. Your employer must additionally carry out a correct social selection (Sozialauswahl) based on length of service, age, maintenance obligations, and severe disability. This is exactly where most mistakes happen in practice. More under operational dismissal and severance pay.

Important: the principle of proportionality applies in all three cases. Dismissal is always the last resort. If there’s a vacant, reasonable position within the company, a transfer, or a change notice (Änderungskündigung) available as a milder option, your employer must take that path instead.

Where the KSchG doesn’t apply: not a licence for arbitrariness

Small business or waiting period: in both cases, your employer doesn’t need a ground under the Protection Against Dismissal Act. This is often misunderstood as a free pass. It isn’t. There’s a minimum level of protection that applies regardless of company size or length of employment:

• Good faith (§ 242 BGB): according to the Federal Labour Court, even small businesses must maintain a minimum level of social consideration. Arbitrary, irrelevant, or contradictory dismissals can fail because of this, for example if a promotion or contract extension was agreed shortly before.
• Immorality (§ 138 BGB): dismissals driven by reprehensible motives, such as vindictiveness or harassment, are void. The bar is high, but it exists.
• Ban on retaliation (§ 612a BGB): your employer may not disadvantage you because you legitimately exercised your rights. If they dismiss you because you demanded outstanding pay, claimed overtime, requested leave, or reported wrongdoing, the dismissal is invalid. The timing is your most important piece of evidence here.
• Prohibition on discrimination under the AGG (§§ 1, 7 AGG): a dismissal based on age, sex, disability, origin, religion, or sexual identity is unlawful. Watch the deadline: you must assert claims for compensation and damages in writing within two months under § 15(4) AGG. More under Discrimination at Work.

The main difference to a KSchG case is the burden of proof: here, you must set out the circumstances showing arbitrariness, retaliation, or discrimination. That’s why it’s so important to carefully document the timeline and everything said at your workplace. Details on protection at small companies can be found under Dismissal Protection at Small Companies.

Special protection against dismissal trumps everything

If you belong to a specially protected group, the question of a dismissal ground often becomes secondary. Special protection against dismissal applies regardless of company size or waiting period and works on a different principle: without prior approval from the relevant authority, the dismissal is simply invalid, no matter how good the ground would be.

• Pregnancy and after giving birth: dismissal ban under § 17 MuSchG, exception only with official approval. Details under Dismissal During Pregnancy.
• Parental leave: dismissal ban under § 18 BEEG, also starting once parental leave is registered. More under Dismissal During Parental Leave.
• Severe disability and equal status: the dismissal requires prior approval from the integration office (§ 168 SGB IX). More under Dismissal With a Severe Disability.
• Works council members and election candidates: ordinary dismissal is generally excluded under § 15 KSchG.

The practical effect: if the official approval is missing or was never obtained at all, the dismissal is invalid, regardless of what ground was given. You’ll find an overview of all protected groups under Special Protection Against Dismissal. Important: you still need to meet the 3-week deadline here too.

Formal errors that invalidate a dismissal regardless of the reason

Even if your employer had a watertight ground, the dismissal can still fail on formal grounds. Go through these points in order for your dismissal letter:

1) Written form with a handwritten signature

§ 623 BGB requires written form. A dismissal by email, WhatsApp, text message, as a scanned PDF, as a photocopy, or spoken aloud is void. Electronic form is also explicitly excluded. You need the original with a genuine, handwritten signature.

2) Signed by the right person

If someone signs who isn’t obviously authorised to dismiss, for example a department head without power of attorney, and no original authorisation is attached, you can reject the dismissal under § 174 BGB. The rejection must happen without delay, in practice within a few days, and in writing. After that, this point of attack is lost.

3) Works council consultation

If a works council (Betriebsrat) exists, it must be consulted before every dismissal (§ 102 BetrVG). A dismissal issued without proper consultation is invalid. This applies even if the dismissal letter states no reason: your employer must actually name the grounds to the works council, and whatever wasn’t presented there generally can’t be added later in proceedings. More under Works Council.

4) A defined end date and notice period

The dismissal must clearly show when the employment relationship is meant to end. "At the earliest possible date" is generally sufficient according to the Federal Labour Court, if you can calculate the notice period yourself. If too short a period is set, the dismissal usually isn’t invalid altogether, but instead takes effect at the correct, later date. You’ll find the staggered periods of § 622 BGB under Notice Period.

A complete checklist for the first days after receiving your dismissal can be found under Received a Dismissal: What Now?

The 3-week deadline: where most cases are lost

Everything said so far stands or falls on a single deadline. Under § 4 KSchG, you must file an unfair dismissal claim with the labour court within 3 weeks of receiving the written dismissal. Receipt means: the moment the letter reaches your sphere of control in such a way that you could reasonably take note of it under ordinary circumstances, so usually when it lands in your letterbox. Whether you were on holiday doesn’t change that.

If you miss the deadline, the legal fiction of validity in § 7 KSchG kicks in: the dismissal counts as valid from the start. The court then no longer checks whether there was a ground, whether the social selection was correct, or whether the works council was consulted. Late admission of a claim under § 5 KSchG is only possible in narrow exceptional cases, for example if you were prevented through no fault of your own, and even then must be requested within two weeks of the obstacle ending.

Important: an objection to your employer, an email to HR, or a request for a clarifying conversation does not preserve the deadline. Only a claim received by the labour court in time counts. Our deadline calculator for unfair dismissal claims works out exactly how many days you have left.

Why a poorly justified dismissal increases your severance pay

There is generally no statutory entitlement to severance pay for dismissal, not even for a dismissal without a reason. Severance pay almost always results from negotiation, and in that negotiation, how well your employer can justify the dismissal is the most important lever. Three mechanisms work in your favour:

• The litigation risk lies with your employer. They must set out and prove the facts that justify the dismissal. If they didn’t commit to a position in the dismissal letter and lack solid documentation, this becomes difficult in proceedings.
• Employer default wages: if your employer loses the case, the employment relationship is treated as having continued the entire time. They must backpay wages for the full length of proceedings, without having received any work in return (§ 615 BGB, offset against anything you earned in the meantime or maliciously failed to earn). The longer the proceedings last, the more expensive this item becomes.
• Labour courts’ settlement practice: courts aim for an amicable settlement at every conciliation hearing. The rule of thumb that has become established as a benchmark is 0.5 gross monthly salaries per year of employment. It isn’t an entitlement, but a negotiation anchor that shifts up or down depending on how shaky the dismissal looks.

Worked example: Tobias receives a dismissal without a single word of justification

Tobias has worked for 6 years at a company with 24 staff and earns €3,200 gross a month. He receives a three-line dismissal letter with no justification at all. Both KSchG thresholds are met: more than ten employees, longer than six months. So his employer needs a socially justifying ground, and must prove it in proceedings. Tobias files his claim on time.

His notice period at 6 years of service is 2 months to the end of the month (§ 622(2) no. 2 BGB). The negotiation anchor using the rule of thumb:

The last row is the real lever. If the employer loses after six months of proceedings in total, they owe around €12,800 in backdated wages beyond the notice period, plus they must keep employing Tobias. Weighed against that risk, a severance payment around the rule-of-thumb figure is often the cheaper option for them. That’s exactly why your negotiating room grows the weaker your employer’s justification is. These figures are an example, not a promise, but they show the mechanics. What else affects the amount is covered under Severance Pay: Amount, and for taxation it’s worth a look at the one-fifth rule.

What could be realistic in your case? Work it out in 2 minutes with our severance calculator.

And the benefit suspension period?

Here you can generally relax. A benefit suspension period (Sperrzeit) under § 159 SGB III requires that you caused your own unemployment: by resigning yourself, through a termination agreement, or through conduct breaching your contract that led your employer to dismiss you. A dismissal by your employer without any contribution from you, and especially one without any justification, generally doesn’t meet that.

This is exactly why you shouldn’t sign an offered termination agreement (Aufhebungsvertrag) too hastily: it shifts responsibility for ending the employment onto you and can trigger the suspension period that the dismissal itself wouldn’t have caused. You’ll find a comparison of both paths under Termination Agreement or Dismissal, and full details on the suspension period under Benefit Suspension for Unemployment Benefit.

What you should do now

A missing justification is no reason to relax, and no reason to panic either. It’s a reason to act in a structured way, right now:

1. Note the day of receipt. The 3-week deadline runs from the day the letter landed in your letterbox. Keep the envelope and the letter, and record when and how it arrived.
2. Check the form. Is it an original with a handwritten signature? Who signed it, and was a power of attorney attached? Is the end date determinable? If authorisation is missing, the rejection under § 174 BGB must go out without delay.
3. Clarify the two KSchG thresholds. How long have you been employed, and how many employees are regularly at the company? Count part-time staff proportionately, consider other sites of the same company, and check the legacy rule if you started before 2004.
4. Check for special protection. Pregnancy, parental leave, severe disability or equal status, works council mandate: is there official approval in place?
5. Document the circumstances. Especially without KSchG protection, timing matters: was there a complaint, a sick note, a pregnancy announcement, or a demand for unpaid wages shortly before? Note dates, names, and witnesses while the memory is still fresh.
6. Ask for the reason in writing, but don’t wait for it. An answer pins your employer down. The claim deadline keeps running regardless.
7. Don’t sign anything. No termination agreement, no settlement receipt, no waiver of your claim, not even "to speed things up".
8. Register as a jobseeker immediately and have the dismissal checked legally before the 3 weeks run out.

First, get an overview of your leverage: The severance calculator shows your personal benchmark figure in 2 minutes.

How can we help you?

A dismissal letter without a justification leaves you in the dark, and that’s exactly what’s uncomfortable about it: you don’t know how strong your position is. We review your case together with lawyers specialising in employment law: does the Protection Against Dismissal Act even apply? What ground could your employer put forward in proceedings, and how solid would it be? Are there formal errors or special protection in play? And what’s realistically achievable, continued employment or ending the relationship on clearly better terms?

We carry the risk: purely success-based, no upfront cost, paid only on success. Start with an initial assessment through our severance calculator, it only takes 2 minutes, and remember the 3-week deadline from the date you received the dismissal.