Employment
Strong dismissal protection through works councils and the labour courts
Employment law splits historically between white-collar (Angestelltengesetz) and other staff, though rules have converged. Ordinary dismissal is possible on notice, but it can be challenged as socially unjustified or motivated by an improper reason, and a works council's stance strongly affects those challenges before the Labour and Social Court.
Key rules
- Ordinary termination requires statutory or agreed notice, with white-collar notice periods lengthening with service.
- A dismissal can be contested as socially unjustified or for an improper motive, with claims brought to the Labour and Social Court within short deadlines.
- Where a works council exists, it must be informed before a dismissal, and its objection strengthens a challenge.
- Collective agreements (Kollektivverträge) set minimum pay by sector; there is no single statutory minimum wage.
Governing law
- Salaried Employees Act (Angestelltengesetz, AngG)White-collar employment
- Labour Constitution Act (ArbVG)Works councils and collective agreements
Penalties and consequences
- Reinstatement or compensation on a successful dismissal challenge
- Back pay where a dismissal is found unlawful
In practice
The role of the works council is pivotal: consulting it, and whether it objects, materially affects a later court challenge. Pay floors come from sectoral collective agreements rather than a national minimum wage.