Terminations of German Employees from Abroad: What International Companies Must Observe

In this article, specialist lawyer for German labor law Moritz Riehl explains which formal requirements must be observed for cross-border terminations. This takes into account the rules established by the latest case law of the German Federal Labor Court (BAG).

Difficulties with Cross-Border Termination Notices

According to Section 623 of the German Civil Code (BGB), terminations in Germany must be in writing – that is, they must be signed by hand by a person authorized to terminate, and the original termination letter must reach the contract partner in original. Oral or electronic termination notices are invalid in form. The formal requirement is mandatory and must be observed almost without exception.

In practice, this often leads to difficulties. Companies with foreign parent companies or management located abroad are often not familiar with the German written form requirement. Furthermore, the cross-border delivery of a written termination is associated with increased time and delivery risks. This can result in deadline and access problems.

Exception to the Written Form Requirement According to International Private Law

However, regarding the strict written form, the phrase also applies: "Exceptions prove the rule." Thus, in certain cross-border constellations, it is possible to terminate a German employment relationship without having to comply with the strict written form.

For cross-border employment relationships, international private law in the Rome I Regulation (formerly the EGBGB until Dec 16, 2009) regulates which labor law applies to the employment relationship. According to Art. 8 Rome I Reg., this is basically determined by the contractual choice of law, although this may not deviate from mandatory employee protection regulations. In the absence of a choice of law, the employment relationship is subject to the law of the state in which or from which the employee usually performs their work. As a rule, the conflict-of-law rules thus lead to employment relationships being subject to German law if the employee works in Germany.

However, Art. 11 para. 3 Rome I Reg. contains a special norm on the form of termination for employment relationships. In this respect, the law of the place where the termination notice is given is decisive, regardless of which law otherwise applies to the employment relationship in question.

If the employer declares a termination, for example, from Chicago via email, the formal requirements according to the local US law apply. Because the law of the United States does not prescribe a written form for terminations there, the termination does not have to be declared in writing.

The German Federal Labor Court has already decided accordingly with Judgment of Aug 22, 2024, 2 AZR 251/23, that terminations issued from abroad are not necessarily subject to the German written form. The BAG confirmed this line with its latest decision of June 18, 2025, 2 AZR 97/24 (B).

Reach of the Exception Strongly Limited

It is important that this special provision of Art. 11 para. 3 Rome I Reg. only allows deviations regarding the form of the termination notice. For other matters of a German employment relationship, national law remains applicable. Furthermore, some indirect restrictions and follow-up problems arise from national law, which must be observed in individual cases. The BAG also made this clear. Particularly important are:

1. Notice Period Must be Observed

German law (Section 622 para. 2 BGB) continues to apply to the notice period. According to case law, this protective provision is mandatory and cannot be deviated from to the detriment of the employee.

2. Deadline for Action under the KSchG Only Runs for Written Terminations

Judicial protection against dismissal can and must also continue to be pursued according to national law. Thus, the three-week period for filing a claim under Section 4 of the German Protection Against Dismissal Act (KSchG) still applies, which only begins to run if the employee receives a written termination. If the termination from abroad reaches the employee, e.g., via email, it may exceptionally be in proper form due to international private law. However, the period for action under the KSchG is not set in motion.

3. Contractual Regulations and the Evidence Act Must be Complied With

Contractual regulations and the German Evidence Act (Nachweisgesetz) also apply without restriction. The Evidence Act obliges employers to provide employees with a record of the essential contractual conditions of the employment relationship. According to Section 2 para. 1 sentence 7 no. 14 of the NachwG, the written form of the termination is also one of the essential contractual conditions. Against this background, most employment contracts contain a regulation that every termination of the employment relationship must be in writing. In this case, employers are already contractually bound to the written form, regardless of whether they send the termination from abroad or not.

4. International Private Law Must Not be Abused

International private law must not be used intentionally to circumvent the written form according to national law. If, for example, the employer goes abroad with the intention of giving a termination notice there without written form and thus circumventing the written form, such a termination is likely to be invalid.

5. Present Power of Attorney Document When Declaring through a Proxy

If the employer is represented by a proxy when issuing the termination notice, they must observe Section 174 BGB. According to this, the employee can immediately reject a termination if the proxy does not present an original power of attorney document when declaring the termination. The presentation of a power of attorney document is exceptionally not necessary if the authorized person is entered as such in the Commercial Register.

Result and Recommendation for Action

For one and the same employment relationship, different legal systems can apply to different matters in cross-border situations. Even if a termination from abroad can exceptionally be effectively declared without complying with the written form, German law must otherwise generally be observed. If the termination is not in writing, this creates significant litigation risks elsewhere in Germany.

Terminations of local employment relationships should therefore always be declared in writing and delivered in a verifiable original manner, even in international constellations.

If an employer wishes to terminate without complying with the written form, they should check the requirements for the exception, in particular the formal requirements of the state from which the termination is declared, in detail. Furthermore, the circumstances justifying the exception must be documented in a verifiable manner.

If the termination is to be declared by a proxy not entered in the Commercial Register, an original power of attorney should be attached to the termination.

As a precaution, the employer is advised to also follow up with a subsidiary written termination.

We advise you competently on the possibilities for terminating an employment relationship. We help you to identify the risks regularly associated with the termination of an employment relationship and to minimize them in the best possible way.