Extraordinary termination

What does "extraordinary termination" mean?

Extraordinary termination (often referred to as "termination without notice") ends the employment relationship immediately. It is the most severe measure in labor law and is only considered if one party can no longer be expected to continue the working relationship.

Distinction from ordinary termination

In the case of ordinary termination, notice periods apply. In the case of extraordinary termination, the employment relationship ends without notice—but there must be a really compelling reason for this.

Legal framework: Section 626 of the German Civil Code (BGB)

The central provision is § 626 BGB. This provides the following guidelines:

• There must be good cause.
• Continuation of the employment relationship (even if only until the end of a notice period) must be unreasonable.
• Time limit: Termination must generally be declared within two weeks after the decisive facts become known.

Important: The 14 days only start to run once sufficiently reliable information is available – not on the basis of mere rumors. Anyone who has reliable knowledge of the facts (e.g., through documents, emails, a conversation, or an internal investigation) must then make a quick decision.

This deadline applies to both sides (employer and employee). It prevents old incidents from being "stored up" and only used later as grounds for termination.

When is termination without notice effective?

For termination without notice to be upheld in court, several elements must come together:

• Important reason (serious incident)
• Unreasonableness of continuation
• No milder means (e.g., warning, transfer, change of procedures)
• Balancing of interests: the overall picture counts. Severity of the allegation, previous history, length of service, consequences for both sides

Courts look very closely: a one-time slip-up is often assessed differently than repeated misconduct or a particularly serious breach of trust.

Alternatives to escalation

Not every conflict has to end in a bang. Depending on the situation, other options can be considered:

Termination agreement: separation by mutual consent

A termination agreement can be a flexible solution— for example, with regard to the end date, leave of absence, reference, or (if negotiated) severance pay. However, for employees, this can have disadvantages in terms of unemployment benefits. Therefore, it is important to have it checked first before signing.

Mediation: Clarify instead of complain

In the case of deadlocked conflicts, a moderated discussion can help. Mediation is particularly suitable if the problem lies more in communication, cooperation, or team dynamics, i.e., where a judgment rarely brings about "peace."

Typical reasons for termination without notice by the employer

Employers may only terminate employment immediately in exceptional cases. Common scenarios are:

Behavior-related reasons

• Theft
• Fraud/manipulation (e.g., working hours)
• Serious insults
• Physical assault
• Sexual harassment
• Unauthorized secondary employment causing significant damage to competitiveness

Special case: dismissal on suspicion

In certain cases, urgent suspicion based on facts may be sufficient— even if the evidence is not yet conclusive. Typically, the following conditions must be met:

• The suspicion is based on specific circumstances, not on gut feeling.
• Trust has been seriously undermined.
• The person concerned must be heard before the dismissal is pronounced.

Example: Simply stating that "someone was in the room last" is usually not enough. Additional reliable evidence (e.g., documentation, plausible circumstantial evidence) can change the situation.

Personnel-related reasons

Less common, but possible, for example in the case of long-term illness with no realistic prospect of recovery or lack of suitability despite previous warnings and lack of improvement. Here, too, the principle of proportionality must be checked first.

Termination without notice by the employee: When is this possible?

Employees can also terminate their employment without notice, but not "on principle." Typical reasons:

• Repeated non-payment of wages
• Severe bullying or discrimination
• Significant health/safety risks (e.g., occupational safety)
• The employer demands illegal behavior

This is where documentation is crucial: anyone who terminates their employment without notice should be able to clearly explain the important reason. Warning: Must a warning be given in advance?

Warning: Must a warning be given beforehand?

In many cases involving conduct, the rule is: first a warning, then (in the event of a repeat offense) termination. The warning shows: "This conduct is a breach of duty, and next time it could be serious." There are exceptions if the conduct is so serious that it is clear that a second chance is unreasonable

There are exceptions if the conduct is so serious that it is clear that a second chance is unreasonable (e.g., theft, violence).

Formal requirements

Even in crisis situations, the form must be correct:

• Written form is mandatory—verbal, text message, or email is invalid.
• The reason must be communicated in writing immediately upon request.
• Works council: In companies with a works council, the works council must be consulted before the dismissal – otherwise the dismissal may be invalid.

Consequences of extraordinary termination

Termination without notice often has side effects, especially financial and organizational ones.

Unemployment benefits: A waiting period may apply

After termination without notice, the Employment Agency may consider a suspension period if it assumes that the job loss was (partly) caused by the employee. The length of the suspension period depends heavily on the individual case. This makes it all the more important to

• Register as a job seeker/unemployed immediately (observe deadlines)
• Have the termination reviewed legally
• If necessary, take action against decisions made by the agency (appeal) if they are not acceptable

Note: Even if you resign or sign a termination agreement , this can be critical in terms of social law – therefore, seek advice beforehand if possible.

Entitlements that remain

Even if the separation is abrupt, typical rights remain:

• Remaining vacation time (grant or pay out)
• Overtime (payment or compensation, depending on regulations/evidence)
• Employment reference (qualified, upon request)

Special protection against dismissal for certain groups

Pregnant women (maternity protection)

Special protection applies during pregnancy and up to four months after childbirth. Extraordinary termination is only possible in rare exceptional cases and usually only with official approval. Important: The employer should be informed of the pregnancy within two weeks of receiving the notice of termination at the latest, if they are not already aware of it.

Works council members

Works council members enjoy strong protection. Ordinary terminations are generally excluded during their term of office; extraordinary termination usually requires additional hurdles (e.g., approval of the committee/judicial replacement).

Severely disabled persons

Before dismissal, the involvement or consent of the competent authority is regularly required. Without this, the dismissal may be invalid.

What to do after termination without notice? Checklist

• Check the letter: Is it in writing? Are there any access data? Are there any references to deadlines?
• Contact the works council (if applicable): Was it involved correctly?
• Seek legal advice quickly: clarify with your union, labor lawyer, or legal expenses insurance
• Register as unemployed/job seeker: meet deadlines to avoid disadvantages
• Secure documents: Emails, pay slips, warnings, notes, witnesses—anything that may help later

Important: The reason for termination does not necessarily have to be stated in the letter. If you request it, it must usually be communicated in writing immediately, and in the event of a dispute, the employer must provide it anyway.

If you want to defend yourself, you can file an action for unfair dismissal. Crucial: The 3-week deadline from receipt of the written notice of termination, secure evidence early and consider whether a settlement (often with severance pay) makes more sense than a long trial.