Termination for operational reasons

A termination for operational reasons is the most common way employment contracts end – especially in times of an economic downturn such as the Corona crisis. During economically more stable times, dismissals for personal reasons or reasons of conduct are more common, but during times of economic crises, companies forced to reduce their staff often resort to dismissals for operational reasons.
However, even dismissals for operational reasons are subject to strict requirements – if the Dismissal Protection Act applies. The labour courts examine whether there really is an operational reason behind the dismissal, whether the right social selection has been made, and whether there are no vacant jobs that the employee in question could be transferred to. In addition, the works council must be consulted and often a notice of mass dismissal must also be filed at the employment agency. A thorough examination of the dismissal can help decide what the chances of success are at the labour court and whether a severance payment is possible.