BGH decision Employers must consider social aspects in terminations

XIII ZB 7624 decision on 29 October 2024 explained.

Legal Clarity on Dismissal Protection: Decision of the BGH

Legal Clarity on Dismissal Protection: Decision of the BGH

In a groundbreaking decision on October 29, 2024, the Federal Court of Justice (BGH) ruled in the case with file number XIII ZB 76/24 on the important topic of dismissal protection. This decision has the potential to have far-reaching effects on the practice of dismissals and the rights of employees in Germany.

The BGH found that employers must adhere to stricter requirements when dismissing employees than previously assumed. The court emphasizes that the protection of employees from arbitrary dismissals must be given greater weight. This decision is a response to the increasingly critical societal debate about the fairness and appropriateness of dismissals, especially in times of economic uncertainty.

In this specific case, it concerned the dismissal of a long-term employee, who was terminated by the employer without the necessary socially justified reason. The BGH argued that a dismissal cannot only be based on seemingly valid reasons but also that the social concerns of the employee must be taken into account. This decision has been deemed groundbreaking by labor law experts, as it further strengthens the protection rights of employees.

Labor law experts pointed out that the ruling forces employers to reconsider their decision-making processes and, if necessary, to document the necessity of dismissals more clearly. In the future, they must demonstrate that a dismissal not only serves the economic interest of the company but also takes into account the social circumstances of the affected person.

This decision could also impact future regulations in labor law, as the BGH indicated the need for a legal reorientation in its reasoning. In particular, there has been discussion about whether an increase in protection periods or a strengthening of the co-determination rights of works councils is necessary to meet the new legal requirements.

Overall, the BGH's decision shows that dismissal protection in Germany continues to hold high importance and that the judiciary is committed to upholding the rights of employees.Employers are called upon to rethink their personnel policies in order to prevent legal disputes while acting fairly and transparently. This decision could thus be seen as a guiding principle for the future design of employment relationships in Germany. Author: Anita Faake, Thursday, November 7, 24

07.11.2024