GermanyWhat are mass layoff notification requirements?
Employers in Germany must notify the Federal Employment Agency (Agentur für Arbeit) before carrying out mass layoffs — defined as dismissals of specific minimum numbers of employees within 30 days, depending on company size. They must also consult the works council and follow strict procedural rules.
What the Law Says
Germany’s Mass Dismissal Act (Kündigungsschutzgesetz, KSchG) sets strict advance notice and consultation obligations for employers planning large-scale dismissals. These rules aim to protect workers and give public employment services time to support affected employees.
The duty to notify applies only when a certain number of employees are dismissed within 30 calendar days — and the threshold depends on how many people are regularly employed at the site. Smaller businesses (21–59 employees) must report if they plan to dismiss more than 5 workers. Medium-sized firms (60–499 employees) trigger the requirement when dismissing either 10% of their regular workforce or more than 25 people — whichever is lower. Large companies (500+ employees) must report any dismissal of at least 30 workers.
Dismissals include all employer-initiated terminations — not just ordinary notice-based ones, but also mutual terminations (Aufhebungsverträge) and contract expirations where the employer declines renewal for operational reasons. However, immediate (fristlose) dismissals for serious cause do not count toward the numerical thresholds.
Before notifying the Federal Employment Agency (Agentur für Arbeit), the employer must inform and consult the works council (Betriebsrat). This includes providing written details about the reasons, affected job groups, total workforce size, timeline, and the criteria used to select who will be dismissed — especially social selection factors like length of service, age, family obligations, and disability status.
The official notification to the Agentur für Arbeit must be in writing, include the works council’s opinion (if available), and contain specific data: employer name, business location and type, reasons, numbers and job categories of affected and total staff, planned timeline, and selection criteria. If the works council hasn’t issued an opinion, the employer can still file validly — but only if they prove they informed the council at least two weeks earlier and describe the consultation status.
Statutory TextDer Arbeitgeber ist verpflichtet, der Agentur für Arbeit Anzeige zu erstatten, bevor er in Betrieben mit in der Regel mehr als 20 und weniger als 60 Arbeitnehmern mehr als 5 Arbeitnehmer, in Betrieben mit in der Regel mindestens 60 und weniger als 500 Arbeitnehmern 10 vom Hundert der im Betrieb regelmäßig beschäftigten Arbeitnehmer oder aber mehr als 25 Arbeitnehmer, in Betrieben mit in der Regel mindestens 500 Arbeitnehmern mindestens 30 Arbeitnehmer innerhalb von 30 Kalendertagen entläßt.
— KSchG § 17 (1) — German Mass Dismissal Act
Statutory TextBeabsichtigt der Arbeitgeber, nach Absatz 1 anzeigepflichtige Entlassungen vorzunehmen, hat er dem Betriebsrat rechtzeitig die zweckdienlichen Auskünfte zu erteilen und ihn schriftlich insbesondere zu unterrichten über die Gründe für die geplanten Entlassungen, die Zahl und die Berufsgruppen der zu entlassenden Arbeitnehmer, die Zahl und die Berufsgruppen der in der Regel beschäftigten Arbeitnehmer, den Zeitraum, in dem die Entlassungen vorgenommen werden sollen, die vorgesehenen Kriterien für die Auswahl der zu entlassenden Arbeitnehmer, die für die Berechnung etwaiger Abfindungen vorgesehenen Kriterien.
— KSchG § 17 (2) — German Mass Dismissal Act
Statutory TextDie Anzeige nach Absatz 1 ist schriftlich unter Beifügung der Stellungnahme des Betriebsrats zu den Entlassungen zu erstatten. Liegt eine Stellungnahme des Betriebsrats nicht vor, so ist die Anzeige wirksam, wenn der Arbeitgeber glaubhaft macht, daß er den Betriebsrat mindestens zwei Wochen vor Erstattung der Anzeige nach Absatz 2 Satz 1 unterrichtet hat, und er den Stand der Beratungen darlegt.
— KSchG § 17 (3) — German Mass Dismissal Act
What Courts Have Said
German labor courts emphasize that procedural compliance — especially correct social selection and timely works council involvement — is essential. Failure to follow KSchG § 17 can invalidate individual dismissals, even if the underlying economic reason is legitimate.
The Federal Labour Court ruled that errors in applying social selection criteria — such as omitting age or maintenance obligations when choosing who to dismiss — make the entire dismissal unlawful. Employers must document and justify each factor used in the selection process.
What to Do
Determine if your layoff plan meets the KSchG § 17 thresholds based on your regular headcount and planned dismissals within 30 days.
Notify and consult your works council in writing *before* issuing any notices — disclosing reasons, numbers, timelines, and selection criteria.
Submit a formal written notification to the Agentur für Arbeit *before* dismissals begin, including the works council’s opinion (or proof of two-week prior consultation if none exists).
Apply social selection rigorously — considering length of service, age, family responsibilities, and disability — and document every decision.
Exclude fristlose (immediate) dismissals from the count, but ensure they’re legally justified separately under KSchG § 1.
Sources
Related Questions
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.