What is an unfair dismissal claim?
An unfair dismissal claim is a legal action by which an employee challenges a termination by their employer before the Labour Court. The claim aims to establish that a termination subject to the Employment Protection Act is socially unjustified.
What filing deadline must be observed?
The claim must be filed with the Labour Court within 3 weeks of the employee receiving the termination. This short filing deadline is regulated in § 4, sentence 1 of the Employment Protection Act (KSchG). The deadline cannot be extended. Only in very few exceptional cases and for important reasons can subsequent admission of the claim be successfully applied for.
What is the unfair dismissal claim directed at?
The claim seeks to have the Labour Court establish that the employer's termination did not end (dissolve) the employment relationship. This is called the specific declaratory application.
Against whom should the unfair dismissal claim be directed?
The unfair dismissal claim must be directed against the correct employer.
Sometimes it is not entirely clear who the current employer is.
This can be problematic with sole proprietorships as well as large companies.
Typically, the employer is identified in the employment contract. Difficult special cases include employer insolvency and business transfers. If necessary, all possible employers must be sued to meet the filing deadline.
Why are claims against sole proprietorships often incorrect?
An unfair dismissal claim against a sole proprietorship is often incorrect because the owner must be sued.
Often even the owner uses an incorrect business designation on letterhead.
Example: Markus Maier operates the sole proprietorship: ABC - Mayer - Construction Services;
this is also stated in the employment contract.
If his terminated employee wants to sue him, they may not direct the claim against ABC-Mayer Construction Services, but must sue the business owner.
The claim would therefore be correctly directed against Markus Mayer, owner of the sole proprietorship ABC - Mayer - Construction Services.
What happens if the unfair dismissal claim is filed against the wrong employer?
Filing an unfair dismissal claim against the wrong employer generally means that the 3-week filing deadline is not met, making the termination effective under § 7 KSchG. If lucky, the Labour Court may interpret the claim to mean the correct employer should have been sued, but there must be at least some indication of this. In exceptional cases, an application for subsequent admission of the claim can be made. This application is rarely successful.
Which court has local jurisdiction for the claim?
The Labour Court at the employer's registered office or the Labour Court in whose district the employee predominantly performed their work has local jurisdiction for filing the claim (§ 48 para. 1a Labour Court Act).
The employee has a choice here.
Example: The employer is registered in Hamburg.
The employee worked almost exclusively in Berlin.
Here the employee can choose whether to sue in Hamburg or before the Berlin Labour Court.
Can you take out legal protection insurance for employment law after termination?
This can be done, but the legal protection insurance will not cover this case. There is a waiting period of at least 3 months. Sometimes you find so-called offers for employment law protection insurance online that take effect immediately. This is often dubious.
Which Labour Court has jurisdiction in Berlin?
There is only one Labour Court in Berlin, namely the Berlin Labour Court at Magdeburger Platz 1. This has jurisdiction for all employment law claims and thus also for unfair dismissal claims against employers.
Can't you sue directly for payment of severance pay?
No, employees very rarely have an entitlement to severance pay. The unfair dismissal claim is almost always the only and correct type of claim.
I don't want continued employment, but severance pay?
Even though you cannot sue directly for payment of severance pay, employees are often helped by filing an unfair dismissal claim, as the settlement hearing seeks a compromise solution, which is often severance payment.
Who bears the lawyer costs when losing the case?
Before the Labour Court, each party must bear their own lawyer costs. There is no cost reimbursement.
Must court costs be paid in advance after filing the claim?
No, there is no advance payment of court costs at the Labour Court. Court costs are collected at the end of the legal dispute.
Can court costs be waived?
Yes, court costs are waived in case of settlement or claim withdrawal.
How long does the unfair dismissal procedure take?
If a claim is filed in time, there will be a settlement hearing just a few weeks after filing. Most procedures end in this hearing through a settlement agreement. In these cases, the procedure takes only 5 to 7 weeks. If the settlement hearing fails, the unfair dismissal procedure takes several months and can even last longer than a year.
What form is required for termination?
Termination must be in writing. This is stated in § 623 BGB.
Can termination also be done electronically?
No, the law clearly requires written form for termination of employment relationships. Electronic form (email etc.) is excluded.
Is termination via WhatsApp permissible?
No, termination via WhatsApp is not possible as it does not comply with the written form requirement. Such termination is void.
If termination is not in writing, must you still file a claim?
Although the 3-week filing deadline (§ 4 sentence 1 KSchG) for unfair dismissal claims actually refers to receipt of written termination, employees are advised to still file a claim within three weeks against the (non-written) termination.