Labour law

In any employment relationship, there are a number of different legal aspects that employers and employees alike need to keep in mind. One aspect is the drafting of the employment contract in the first place, as the rights and duties will need to be correctly established. Other aspects include establishing when the works council should be involved as well as how to effectively enact terminations. The employment contracts needs to be drafted carefully, as a properly worded contract helps mitigate problems and unintentional consequences later on. In the event that an employee has been terminated and a lawsuit is brought forward, it is possible to check whether the termination was enacted properly. This is a vitally important aspect as the outcome can have enormous financial consequences for one side or the other.

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In any employment relationship, there are a number of different legal aspects that employers and employees alike need to keep in mind. One aspect is the drafting of the employment contract in the first place, as the rights and duties will need to be correctly established. Other aspects include establishing when the works council should be involved as well as how to effectively enact terminations. The employment contracts needs to be drafted carefully, as a properly worded contract helps mitigate problems and unintentional consequences later on. In the event that an employee has been terminated and a lawsuit is brought forward, it is possible to check whether the termination was enacted properly. This is a vitally important aspect as the outcome can have enormous financial consequences for one side or the other.

The questions abound: Which provisions need to be included in an employment contract, and which ones would be good to include? What are the special features involved when drafting employment contracts for managing directors? What are the rights and duties of employers and employees in an existing employment relationship and how can the one side or the other seek fulfilment of these or assert compliance with these? At what point does the works council need to be involved and in what capacity? What conditions need to be met when terminating an employee? How should you respond if you receive a termination letter? And finally, what should you pay attention to when it comes to a settlement agreement?

Employers and employees will both be faced with challenges, and numerous questions will arise when an employee starts their employment at a firm, when issues emerge during employment and even when the contract ends or is terminated. It is possible that a minor, poorly worded clause leads to major consequences, meaning that one of the parties to the contract has demands that cannot be met or can no longer be met. It could mean that the termination is deemed null and void or that there are other unfortunate issues. That’s why it is all the more important to draft the employment contract with deliberation and with attention to legal stipulations so both sides have a firm basis for the employment contract. This lessens the likelihood of legal disputes further down the line. If proceedings are initiated in a case of unfair dismissal, the individual provisions of the contract and their validity come into question, in addition to the content and formal aspects of the termination notice itself.

On top of all this, the legal landscape is constantly changing, and this is especially true when it comes to labour law. This area of the law requires experts to stay informed and consult the latest changes in legislation and rulings by the Federal Labour Court in an effort to ascertain the chances of a lawsuit attaining a positive outcome. Further, there are the legal procedures that need to be heeded when taking a case to the Labour Court. We would be happy to assist you in matters involving labour rights and defend your interests, whether as the employer or the employee, even if it means taking the case to court.


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An employment contract that is carefully drafted offers both parties something they can rely on; it also clearly stipulates the rights and duties, leaving little to interpretation. You can nip misunderstandings and conflicts at the bud with a well-crafted contract. All the more reason to pay careful attention to drafting it with sound legal provisions and tailored to the specific situation.

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An employment contract lays down the general framework for a job establishing pay, hours, holidays and notice terms. It makes good sense to regulate any collateral agreements such as the option of remote working or the use of a company car through it so nothing is left to interpretation. We believe that a contract’s wording is particularly important, as it captures both the legal requirements as well as your specific requirements.


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In Germany, the Protection Against Dismissal Act (Kündigungsschutzgesetz, KSchG) governs firms employing more than ten people and it protects employees who have been continuously working at a firm for more than six months. For example, social selection plays a major role if there are operational reasons for a dismissal. Along the same lines, an employer must provide proof of social justification when dismissing an employee due to misconduct or personal circumstances.

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There are specific groups within a firm, such as members of the works council, pregnant women or disabled people, who enjoy additional legal protections. Employees have the right to pursue legal action against their employer in the event of unfair dismissal. In this regard, employers can benefit from legal advice and in the process minimise their risks and comply with the legal provisions.


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Termination agreements and settlement agreements offer both employers and employees the opportunity to end an employment relationship by mutual consent. It enables both parties to make sound plans and it avoids long, drawn-out disputes. A termination agreement ends the employment relationship by mutual consent and at a specific date, whereas the settlement agreement stipulates the path forward after a termination has been enacted. It often is accompanied by an arrangement that includes severance pay due to the loss of employment.

We would be happy to advise you on your options for making these agreements and can help you with drafting a suitable agreement.

The Works Constitution Act governs the relationship between employer and works council in Germany. This act stipulates the rights and duties of works councils and governs how they work together with employers. These regulations codify co-determination rights in social, personnel and financial matters. Employers are required to approach the works council at an early stage with the matter and cooperate with it. There are legal consequences when these rights are violated. Which means that good legal counsel received in good time will foster a constructive dialogue, mitigating potential conflicts.