Dismissal for operational reasons

What is a dismissal for operational reasons?

If an employer can no longer employ an employee due to operational requirements, this is a dismissal for operational reasons. The reason must therefore be stated by the employing company. It therefore makes a business decision in each case that leads to job cuts. This is a complex and legally regulated process in Germany. Employers must comply with certain regulations in order to protect the rights of employees and ensure fair treatment.

What are the important characteristics of a dismissal for operational reasons?

Applicable laws

Dismissal for operational reasons is regulated in the Dismissal Protection Act (KSchG ) and the German Civil Code (BGB) and must be taken into account.

Operational reasons

Dismissals for operational reasons are made for economic, technical or organizational reasons. These reasons must be objectively justified and comprehensible, for example as a result of restructuring, mergers or declining orders.

Social selection

A social selection of employees must be carried out in the event of redundancies for operational reasons. Criteria such as length of service, age, maintenance obligations and severe disability are taken into account in order to ensure a fair selection of the employees to be dismissed.

Internal duty to inform

Employers are obliged to inform the works council of the planned dismissal for operational reasons at an early stage. They must also involve it in the decision-making process. This involves in-depth coordination and discussion of the reasons for the dismissal and possible alternatives.

Attempts to avoid

Before compulsory redundancies are announced, alternatives must be examined, such as short-time working, internal redeployment or training measures.

Social plan

If a certain number of employees are affected by redundancies for operational reasons, it may be necessary to draw up a social plan. A social plan regulates the financial and social compensation measures for the dismissed employees.

Notice period and form

The statutory notice periods must be observed. Notice of termination must be given in writing and contain all necessary information, such as the reason for termination and information on legal remedies. This is an ordinary termination.

Action for unfair dismissal or Right of objection

If employees consider the dismissal for operational reasons to be unjustified, they can file an action for protection against dismissal with the labor court within three weeks of receiving the dismissal notice. The court will review the legality of the dismissal.