Abfindung
Severance payment. No general statutory entitlement; usually negotiated as a court settlement. Standard formula: 0.5 gross monthly salaries × years of service. Read more →
Abmahnung
Formal written warning. Required as a precondition for a later conduct-related dismissal in most cases. Read more →
Aufhebungsvertrag
Termination agreement — bilateral contract ending the employment by mutual consent. Triggers a 12-week unemployment-benefit blocking period unless drafted correctly. Read more →
Arbeitsgericht
German labour court — first-instance court for employment disputes.
BAG
Bundesarbeitsgericht — Federal Labour Court of Germany. Highest instance for labour-law decisions.
Betriebsrat
Works council. Must be consulted before any dismissal (§ 102 BetrVG).
Betriebsbedingte Kündigung
Operational / redundancy dismissal. Requires elimination of the position and proper social selection. Read more →
Freistellung
Release from work duties with continued pay until the end-date of employment.
Fristlose Kündigung
Summary (without-notice) dismissal under § 626 BGB. Requires a serious cause and a 2-week reaction window. Read more →
Fünftelregelung
Tax rule under § 34 EStG that mitigates the tax burden on severance pay by spreading it mathematically over five years.
Klagefrist
Filing deadline. For unfair-dismissal claims it is exactly 3 weeks from receipt of the dismissal (§ 4 KSchG).
Kündigung
Unilateral termination of employment, either by the employer or the employee. Must be in writing with an original signature (§ 623 BGB). Read more →
KSchG
Kündigungsschutzgesetz — Dismissal Protection Act. Applies when you have been employed more than 6 months at an employer with more than 10 staff. Read more →
Kündigungsschutzklage
Unfair-dismissal claim filed at the Arbeitsgericht within 3 weeks. Read more →
Rechtsschutzversicherung
Legal-expenses insurance. Most policies cover employment matters after a 3-month waiting period.
Sozialauswahl
Social selection. In a redundancy dismissal the employer must compare employees on tenure, age, dependants and disability (§ 1 (3) KSchG).
Sperrzeit
12-week unemployment-benefit blocking period (§ 159 SGB III), triggered most commonly by a termination agreement without important cause.
Tarifvertrag
Collective bargaining agreement.
Urlaubsabgeltung
Cash-out for unused statutory holiday at the end of the employment (§ 7 (4) BUrlG). Read more →
Zeugnis
Reference letter. Qualified reference must be at least "good" in market practice; "very good" is the negotiation target.
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