Dismissal Without a Reason: Is That Allowed?

The Short Answer: Giving Reasons and Having a Reason Are Two Different Things

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

Question 1: Must the dismissal letter state a reason? For an ordinary dismissal, no. The law doesn’t require a reason for it. It only requires written form with a handwritten signature (§ 623 BGB), nothing more. A dismissal letter without a stated reason is therefore not invalid simply because it lacks reasons.

Question 2: Does your employer need a reason? That’s the question that actually matters, and the answer is often yes. If the Protection Against Dismissal Act applies, meaning the company usually employs more than ten people (§ 23(1) KSchG) and your employment has lasted more than six months (§ 1(1) KSchG), then the dismissal must be socially justified. It needs a reason relating to your person, your conduct, or operational needs (§ 1(2) KSchG). Without one, the dismissal is invalid.

The catch with question 2: this invalidity doesn’t arise automatically. It must be raised before the labour court, within 3 weeks of receiving the written dismissal (§ 4 KSchG). If you let this deadline pass, the dismissal is treated under § 7 KSchG as valid from the outset. Even a completely groundless one. This is where, in practice, most cases are lost before they even begin.

Rule of thumb: no reason in the letter doesn’t mean the dismissal holds 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 the Dismissal Letter Doesn’t Need to State a Reason (and Why That’s Good for You)

German employment law clearly separates the declaration of dismissal from its justification. The declaration is a unilateral 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 in the unfair dismissal proceedings.

That’s exactly where an advantage lies that many people affected overlook. In the proceedings, your employer bears the burden of presentation and proof for the facts meant to socially justify the dismissal (§ 1(2) sentence 4 KSchG). So they must state what reason they had, and prove it. They’re bound to 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 may not reveal anything to you, but they also gain nothing by it. They haven’t secured any advantage, just postponed the point at which they must deliver. And the later they deliver, the harder it becomes to prove the reason already existed back then. You can read how this process works under Unfair dismissal claim.

The Exceptions: When Giving Reasons Is Required After All

There are situations where the law explicitly requires reasons to be given:

• Apprenticeships after the probationary period: Under § 22(3) BBiG, the dismissal must be in writing and state the reasons. Without those reasons, the termination of the apprenticeship is invalid.
• Pregnancy and maternity protection: If the authority has exceptionally approved a dismissal, your employer must state the approved reason in the dismissal letter (§ 17(2) sentence 2 MuSchG).
• Parental leave: Here too, a dismissal is only possible with official approval, and it must be in writing and state the approved reason (§ 18 BEEG).
• Summary dismissal, upon request: Under § 626(2) sentence 3 BGB, whoever dismisses someone must notify the other party of the reason in writing without delay if asked to. Importantly, the dismissal remains valid even if they don’t. This duty isn’t a condition for validity, but breaching it can trigger damages claims and serves as an indication in court proceedings. Ask for the notice anyway: it pins your employer down.
• Collective agreements: A collective agreement may 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.

Note: Outside these cases too, you can of course ask for the reason in writing. You generally have no enforceable right to information for an ordinary dismissal, but a reply pins your employer down, and no reply, or an evasive one, is a sign in a small business that can matter for claims of arbitrariness or victimisation. Don’t rely on it, though: the 3-week deadline keeps running while you wait for an answer.

When Your Employer Really Needs a Reason: the Two Thresholds

Whether your employer needs a reason for dismissal depends on two requirements, and both must be met:

1) The Waiting Period: More Than Six Months

The KSchG only applies once your employment with the same establishment or company has lasted more than six months without interruption (§ 1(1) KSchG). This is known as the waiting period. It has nothing to do with an agreed probationary period, even though the two often overlap: the probationary period only affects the shortened two-week notice period (§ 622(3) BGB), while the waiting period concerns protection against dismissal. Read more under probationary period and dismissal during the probationary period.

2) Company Size: Usually More Than Ten Employees

Under § 23(1) KSchG, the law doesn’t apply in businesses that usually employ ten or fewer people. Headcount is weighted proportionally: part-time staff working up to 20 hours a week count as 0.5, up to 30 hours as 0.75, and above that as 1.0. Apprentices aren’t counted. What matters is the usual number of employees, not the figure on any given date.

Important, the grandfathering rule: if your employment 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 still work there today. If you’ve been with the company a long time, definitely have this checked.

If you fall into one of the first two rows, that doesn’t mean you have no chance at all. Find out in detail what’s still possible under Protection against dismissal in small businesses.

Not sure which row applies to you? Our severance calculator places your case in 2 minutes and shows you what range is realistic.

The Three Permitted Grounds for Dismissal at a Glance

Where the KSchG applies, § 1(2) KSchG recognises exactly three categories your employer can draw on. There is no fourth. Whatever they argue in court must fit into one of these three boxes, and each has its own strict requirements.

Dismissal for Reasons Relating to the Person

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

Dismissal for Reasons Relating to Conduct

This requires a controllable breach of duty: persistent lateness, refusal to work, or breaches of company rules. A relevant warning notice (Abmahnung) is usually required beforehand, giving you the chance to change your behaviour. Without it, the dismissal often fails for that reason alone. More under dismissal for conduct reasons and warning notice before dismissal.

Dismissal for Operational Reasons

This relies on urgent operational requirements: falling orders, restructuring, or the job itself disappearing. Your employer must also 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 dismissal (Änderungskündigung) as a milder alternative, your employer must pursue that route instead.

Where the KSchG Doesn’t Apply: No Licence for Arbitrariness

Small business or waiting period: in both cases, your employer needs no reason within the meaning of the KSchG. This is often misunderstood as a blank cheque. 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 Federal Labour Court case law, even in a small business a minimum degree of social consideration must be maintained. Arbitrary, irrelevant, or contradictory dismissals can fail on these grounds, for example if a promotion or contract extension was on the table shortly beforehand.
• Immorality (§ 138 BGB): dismissals with reprehensible motives, such as vindictiveness or harassment, are void. The bar is high, but it exists.
• Prohibition on victimisation (§ 612a BGB): your employer isn’t allowed to disadvantage you for legitimately exercising your rights. If they dismiss you because you demanded outstanding pay, claimed overtime, asked for leave, or reported grievances, the dismissal is invalid. The timing here is your most important piece of evidence.
• The AGG’s prohibition on discrimination (§§ 1, 7 AGG): a dismissal based on age, sex, disability, origin, religion, or sexual identity is unlawful. Watch the deadline: under § 15(4) AGG you must assert compensation and damages claims in writing within two months. More under discrimination in the workplace.

The key difference from a KSchG case is the burden of proof: here, you must present the circumstances showing arbitrariness, victimisation, or discrimination. That’s why it’s so important to carefully document the timeline and any statements made at the company. You’ll find the details on protection in small businesses under Protection against dismissal in small businesses.

Special Protection Against Dismissal Trumps Everything

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

• Pregnancy and after childbirth: dismissal is prohibited under § 17 MuSchG, with exceptions only if officially approved. Details under dismissal during pregnancy.
• Parental leave: dismissal is prohibited under § 18 BEEG, also from the point you register for parental leave. 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 official approval is missing or was never obtained at all, the dismissal is invalid, regardless of any reason. You’ll find an overview of all protected groups under Special protection against dismissal. Important: you still need to observe the 3-week deadline here too.

Formal Errors That Can Sink a Dismissal, Regardless of the Reason

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

1) Written Form With a Handwritten Signature

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

2) Signed by the Right Person

If someone signs who isn’t clearly authorised to dismiss you, such as a department head without commercial power of attorney, and no original power of attorney 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) Consultation of the Works Council

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 reasons to the works council, and whatever they didn’t present there generally can’t be added later in court. More under works council.

4) A Defined Termination Date and Notice Period

The dismissal must clearly show when your employment is meant to end. According to Federal Labour Court case law, "at the earliest possible date" is usually enough 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 on the correct, later date. You’ll find the scale under § 622 BGB under notice period.

You’ll find a full checklist for the first days after receiving a dismissal under Received a dismissal: what to do?

The 3-Week Deadline: Where Most Cases Are Lost

Everything said so far stands or falls with a single deadline. Under § 4 KSchG, you must file your unfair dismissal claim with the labour court within 3 weeks of receiving the written dismissal. Receipt means the point at which the letter reaches your sphere of control such that you could normally take note of it, in practice usually when it lands in your letterbox. Being on holiday doesn’t change this.

If you miss the deadline, the deemed-validity rule of § 7 KSchG applies: the dismissal is treated as legally valid from the start. The court then no longer examines whether there was a reason, whether the social selection was correct, or whether the works council was consulted. Late admission under § 5 KSchG is only possible in narrow exceptional cases, for example if you were prevented through no fault of your own, and must itself be requested within two weeks of the obstacle ending.

Important: objecting to your employer, emailing HR, or asking for a clarifying conversation do not preserve the deadline. Only a claim received by the labour court in time counts. Our unfair dismissal claim deadline calculator works out exactly how many days you have left.

Why a Poorly Justified Dismissal Increases Your Severance Pay

There’s generally no legal 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 solid your employer’s reasoning is turns out to be your most important lever. Three mechanisms work in your favour:

• The litigation risk lies with your employer. They must present and prove the facts justifying the dismissal. If they didn’t commit to anything in the letter and lack solid documentation, that becomes difficult in court.
• Back pay for default of acceptance: if your employer loses the case, your employment is deemed to have continued the whole time. They must back-pay wages for the entire length of proceedings, without having received any work in return (§ 615 BGB, offset against whatever you earned elsewhere in the meantime, or deliberately failed to earn). The longer proceedings drag on, the more expensive this becomes.
• The settlement practice of labour courts: at every conciliation hearing, the court pushes for an amicable settlement. The rule of thumb of 0.5 gross monthly salaries per year of service has become the standard benchmark. It isn’t a legal entitlement, just a negotiating anchor that shifts up or down depending on how shaky the dismissal is.

Worked Example: Tobias Receives a Dismissal Without a Single Word of Explanation

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

With 6 years of service, his notice period is 2 months to the end of the month (§ 622(2) no. 2 BGB). The negotiating anchor according to 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 back pay beyond the end of the notice period, and must keep employing Tobias. Weighed against this risk, severance pay around the size of the rule-of-thumb figure is often the cheaper solution for the employer. That’s exactly why your negotiating room grows the weaker their reasoning is. These figures are an example, not a promise, but they show the mechanics. For what influences the amount in detail, see severance pay: amount, for taxation, it’s worth looking at the one-fifth rule (Fünftelregelung).

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

And What About the Benefit Suspension Period for Unemployment Benefit?

You can generally breathe easy here. A benefit suspension period (Sperrzeit) under § 159 SGB III requires that you brought about your own unemployment: through resignation, a termination agreement (Aufhebungsvertrag), or conduct breaching your employment contract that prompted your employer to dismiss you. A dismissal by your employer through no fault of yours, especially one with no reason at all, generally doesn’t meet this.

That’s exactly why you shouldn’t hastily sign a termination agreement if one is offered: it shifts responsibility for ending the employment onto you and can trigger the very suspension period the dismissal itself wouldn’t have caused. You’ll find a comparison of both routes under termination agreement or dismissal, and all the details on the suspension period under benefit suspension period for unemployment benefit.

What You Should Do Now

The missing reason is no cause for reassurance, but no cause for panic either. It’s a reason to act in a structured way, starting now:

1. Note the date of receipt. The 3-week deadline runs from the day the letter landed in your letterbox. Keep the envelope and letter, and record when and how it arrived.
2. Check the form. Is it the original with a handwritten signature? Who signed it, and was a power of attorney attached? Can you work out the termination date? If a power of attorney is missing, send your rejection under § 174 BGB without delay.
3. Clarify both KSchG thresholds. How long have you been employed, and how many people usually work at the company? Count part-time staff proportionally, remember other locations of the same business, and check the grandfathering rule if you started before 2004.
4. Check for special protection against dismissal. Pregnancy, parental leave, severe disability or equal status, works council mandate: has official approval been given?
5. Document the circumstances. Especially without the KSchG, timing matters: was there a complaint, a sick note, a pregnancy announcement, or a demand for outstanding pay shortly beforehand? Note dates, names, and witnesses while your memory is fresh.
6. Ask for the reason in writing, but don’t wait for it. A reply pins your employer down. The filing deadline keeps running regardless.
7. Don’t sign anything. No termination agreement, no settlement receipt, no waiver of your right to claim, not even "just 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: Our severance calculator shows you your personal benchmark figure in 2 minutes.

How Can We Help You?

A dismissal letter with no reason leaves you in the dark, and that’s exactly what’s unsettling about it: you don’t know how strong your position is. We review your case together with lawyers specialising in employment law: does the KSchG even apply? What reason might your employer raise in court, and how solid would it be? Are there formal errors, or does special protection apply? And what’s realistically achievable: continued employment, or ending it on clearly better terms?

We carry the risk: purely success-based, at no upfront cost. Start with an initial assessment using our severance calculator, it only takes 2 minutes, and keep the 3-week deadline from receipt in mind.