In Germany, a termination letter must be issued in written form (§ 623 BGB) – terminations via email, fax, or verbal notice are legally invalid. For employers, the rule is clear: only a letter with the correct mandatory information, the applicable notice period, and verifiable delivery will hold up legally. Formal errors can result in the employment relationship continuing despite the attempted termination.
What Is a Termination Letter?
A termination letter (German: Kündigungsschreiben) is the formal, written declaration to unilaterally end an employment relationship. It constitutes a unilateral declaration of intent – the other party's consent is not required. The legal basis is § 623 of the German Civil Code (BGB), which mandates written form for all terminations of employment contracts.
Both employers and employees may issue a termination letter. The same formal requirements apply to both sides, but employers face additional legal obligations – most notably compliance with the Protection Against Unfair Dismissal Act (KSchG) and, where applicable, consultation of the works council (Betriebsrat).
Mandatory Contents: What Must Be Included?
Minimum Formal Requirements
A legally valid termination letter must contain the following:
- Full names and addresses of both parties (employer and employee)
- Date of the letter (serves as proof of timely issuance)
- Clear statement of termination – e.g. "I hereby terminate the existing employment relationship with proper notice effective..."
- Termination date – the exact date on which the employment ends
- Original handwritten signature of the authorised signatory
A statement of reasons is generally not required in the letter itself. Exceptions apply during the probationary period for apprentices and when the works council requests a written explanation.
Written Form Requirement – What Does Not Qualify?
Under § 623 BGB, electronic form is explicitly excluded. The following methods of delivery are not legally valid:
- Email (including with a scanned signature)
- Fax
- SMS or messenger messages (e.g. WhatsApp)
- Verbal termination
The termination letter must be printed on paper and bear an original handwritten signature. For employer-issued terminations, the signature must come from an authorised representative (e.g. managing director, authorised HR manager). In cases of so-called joint representation (Gesamtvertretung), multiple persons may be required to sign together.
Types of Termination
Ordinary Termination
Ordinary termination ends the employment relationship in compliance with the applicable statutory, contractual, or collective bargaining notice periods. It is the standard form of termination and may be issued for operational, personal, or conduct-related reasons.
- Operational termination (betriebsbedingte Kündigung): The position is eliminated for economic or organisational reasons. Where multiple employees are affected, a social selection process (§ 1 para. 3 KSchG) must be conducted.
- Personal termination (personenbedingte Kündigung): The employee is permanently unable to fulfil the contractually agreed duties – for example, due to long-term illness.
- Conduct-related termination (verhaltensbedingte Kündigung): Requires culpable, contractually violating behaviour on the part of the employee. As a rule, an unsuccessful formal warning (Abmahnung) must precede dismissal.
Extraordinary (Immediate) Termination
Extraordinary termination under § 626 BGB ends the employment relationship immediately, without observing a notice period. It is only permissible when there is good cause – meaning that continuing the employment relationship, even for the duration of the ordinary notice period, is unreasonable for the terminating party. Typical examples include theft, falsification of working hours, or serious breaches of duty.
Important: An extraordinary termination must be issued within two weeks of becoming aware of the grounds for termination (§ 626 para. 2 BGB). Missing this deadline renders the termination invalid.
Termination During the Probationary Period
During an agreed probationary period (maximum 6 months), either party may terminate the employment with a shortened notice period of two weeks – effective on any calendar day, not necessarily the 15th or the end of the month (§ 622 para. 3 BGB). No statement of reasons is required.
Notice Periods at a Glance
The statutory notice periods for employers are based on the employee's length of service and governed by § 622 BGB:
Collective bargaining agreements or individual employment contracts may provide for longer notice periods. For employees, the default notice period without a specific agreement is 4 weeks to the 15th or end of the month. What matters is always the date of receipt by the recipient – not the date printed on the letter.
Employer Checklist
Before issuing a termination letter, HR professionals should review the following:
1. Works Council Consultation (§ 102 BetrVG)
If a works council (Betriebsrat) exists within the company, it must be consulted before every termination – without exception. The consultation must take place before the termination is issued and must fully disclose the grounds for dismissal. The works council has different response periods depending on the type of termination: 3 days for extraordinary terminations, 1 week for ordinary terminations. A termination issued without prior works council consultation is automatically invalid.
2. Check Special Dismissal Protection
Certain groups of employees are protected by law against dismissal. In these cases, termination without regulatory approval is not permissible or is only possible under very limited circumstances:
- Pregnant employees and those on maternity leave (§ 17 MuSchG)
- Employees on parental leave (§ 18 BEEG)
- Severely disabled employees – approval from the Integration Office (Integrationsamt) required (§§ 168 et seq. SGB IX)
- Works council members – dismissal only possible in narrowly defined exceptions (§ 15 KSchG)
- Apprentices after the probationary period – only for good cause (§ 22 BBiG)
3. Legally Secure Delivery
The termination only takes effect upon receipt by the employee. The following delivery methods are recommended to ensure proof:
- Personal handover in the presence of at least one witness, with written acknowledgement of receipt
- Drop-letter registered mail (Einwurf-Einschreiben) – not registered mail with return receipt, as this is considered undelivered if the recipient is absent or refuses acceptance
- Delivery by a witness to the letterbox (the witness must be able to confirm the contents of the envelope)
If the employee refuses to accept the letter, it must be delivered again. In the event of a dispute, the employer bears the burden of proof for timely delivery.
Common Mistakes and How to Avoid Them
Many terminations fail not due to substantive deficiencies but because of formal errors. The most common mistakes:
- Missing original signature – Scanned or digital signatures are insufficient under § 623 BGB.
- Incorrect notice period – Extended periods under § 622 BGB are frequently overlooked, particularly for long-serving employees.
- Works council not consulted – Even a substantively correct termination is invalid if § 102 BetrVG was not observed.
- Special dismissal protection not checked – Terminating a pregnant employee without regulatory approval is generally invalid.
- Unreliable delivery method – Registered mail with return receipt is considered undelivered if the recipient refuses or is unavailable.
- Incorrect termination date – Choosing a date that does not correspond to the correct notice period expiry can render the termination invalid or shift it to a later date.
Frequently Asked Questions About Termination Letters
What must a termination letter legally contain?
A legally valid termination letter must include the full names and addresses of both parties, the date of the letter, a clear statement of termination, the termination date, and the original handwritten signature of the authorised person. A statement of reasons is generally not required.
Can a termination be issued by email or fax?
No. § 623 BGB explicitly mandates written form and excludes electronic formats. Email, fax, SMS, WhatsApp, and even telegram are not legally valid. Even a scanned original signature is insufficient. The termination letter must exist on paper with an original handwritten signature.
Does a termination letter need to state a reason?
Employees are generally not required to provide reasons when resigning. Employers are also not obliged to state reasons in the letter itself – but must be able to demonstrate social justification internally under § 1 KSchG. A written explanation is required upon request from the works council. When terminating an apprentice after the probationary period, a written statement of reasons is legally required (§ 22 para. 3 BBiG).
What notice periods apply to employers?
The statutory basic notice period is 4 weeks to the 15th or end of the month (§ 622 para. 1 BGB). It extends to 1 month at the end of the month from 2 years of service, 2 months from 5 years – rising in increments to a maximum of 7 months from 20 years of service. During the probationary period, a shortened notice period of 2 weeks applies, effective on any calendar day.
How must a termination letter be delivered?
The most reliable method is personal handover in the presence of a witness, with written acknowledgement of receipt. Drop-letter registered mail is also appropriate – registered mail with return receipt is not, as it is considered undelivered if the recipient refuses or is absent. What always governs is the actual date of receipt by the employee, not the date on the letter. Employers bear the burden of proof in the event of a dispute.
When is a termination letter invalid?
A termination letter can be invalid for various reasons: missing original signature or electronic delivery (§ 623 BGB), failure to observe the notice period, omission of works council consultation under § 102 BetrVG, violation of special dismissal protection (e.g. for pregnant employees or severely disabled persons), or incorrect or missing identification of the employment relationship.
What is the difference between ordinary and extraordinary termination?
Ordinary termination ends the employment relationship in compliance with the applicable statutory or contractual notice period. Extraordinary termination under § 626 BGB ends it immediately – it is only permissible where there is good cause that makes continuing the employment relationship unreasonable. Extraordinary termination must be issued within 2 weeks of becoming aware of the grounds.
Must the works council be consulted before every termination?
Yes – where a works council exists, consultation before every termination is required by law (§ 102 BetrVG). Without prior consultation, the termination is invalid regardless of whether the works council objects or agrees. For ordinary terminations, the works council has one week to respond; for extraordinary terminations, three days.
Conclusion
A legally valid termination letter requires more than clear wording. Employers must comply with the written form requirement under § 623 BGB, calculate the correct notice period under § 622 BGB, consult the works council in advance, and verify applicable special dismissal protection. Even minor formal errors – such as a missing original signature or an unreliable delivery method – can cause the termination to fail before the Labour Court (Arbeitsgericht).
A standardised internal HR checklist covering all steps prior to issuing a termination is strongly recommended. In cases of uncertainty – particularly with extraordinary terminations, special dismissal protection, or mass redundancies – specialist legal advice from a labour law attorney should be sought early.
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Sources
- § 623 BGB – Written form of termination. Federal Ministry of Justice, 2024. https://www.gesetze-im-internet.de/bgb/__623.html
- § 622 BGB – Notice periods in employment relationships. Federal Ministry of Justice, 2024. https://www.gesetze-im-internet.de/bgb/__622.html
- § 626 BGB – Extraordinary termination for good cause. Federal Ministry of Justice, 2024. https://www.gesetze-im-internet.de/bgb/__626.html
- § 1 KSchG – Social justification of termination. Federal Ministry of Justice, 2024. https://www.gesetze-im-internet.de/kschg/__1.html
- § 102 BetrVG – Works council consultation. Federal Ministry of Justice, 2024. https://www.gesetze-im-internet.de/betrvg/__102.html
- Guide to Employment Law (Ratgeber Arbeitsrecht). Federal Ministry of Labour and Social Affairs (BMAS), 2023. https://www.bmas.de/DE/Service/Publikationen/Broschueren/a696-ratgeber-zum-arbeitsrecht.html
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