How founders can give notice to their employees

When things go badly, startups must also be able to part with employees. An overview of what works - and what doesn't.

Of course, it's best if it's all about growth. After all, startups want to be success stories at best. But of course, layoffs are also part of the hard everyday life in the corporate world. Founders who want to, or rather have to, part with an employee have a few things to keep in mind. Otherwise, the termination is quickly invalid. Start-up bosses should think about these questions before giving notice. At the same time, they also serve as a guide for employees as to whether the termination is legal for them.

What is the difference between ordinary and extraordinary termination?

Normally, it is always a matter of ordinary termination when an employee is to be dismissed. They are characterized, among other things, by the fact that the employer must state a reason for termination and there is usually a notice period. Founders can issue an extraordinary notice of termination if there is a so-called "good cause", for example in the case of blatant misconduct on the part of the employee. In this case, there is no longer necessarily a notice period. In this text, however, it should be about the ordinary terminations.

Which occupational groups can give ordinary notice to founders?

There are some occupational groups to which employers cannot easily give ordinary notice of termination. These include, for example, works council members, which could be a reason. Trainees can also not be properly terminated after the end of their probationary period.

In addition, there are some groups that enjoy special protection against dismissal. These include pregnant women, employees on parental and nursing leave, and mothers for up to four months after the birth of their child. As a rule, they too cannot be dismissed without notice. Severely disabled employees, on the other hand, can be given ordinary notice of termination, but in this case the Integration Office must give its approval - and the company's representative body for severely disabled employees, if one exists. This is obligatory in companies where at least five severely disabled people have been working for more than six months.

What grounds can founders use to terminate an employee's employment?

The German Dismissal Protection Act stipulates that employers may only give notice of termination if it is socially justified. Founders must therefore be able to prove a reason for the termination in the person, the behavior of the employee or by operational requirements.

A termination for personal reasons may be given if the employee is demonstrably unable to perform as expected of him, for example if he is sick too often for too long and this will not change in the future. In the case of a termination for conduct-related reasons, the matter becomes more difficult: Here, founders must be able to prove that there has been misconduct and that continued employment would be unreasonable. To do this, they must also have issued a warning prior to termination. Showing up drunk on the job, insulting the employer or repeatedly being absent without excuse can be grounds for termination for conduct-related reasons. In the case of termination for operational reasons, on the other hand, founders must be able to show that the reduction of a job is indispensable, for example because they have fewer orders or they have to close a department.

Do the provisions on protection against dismissal apply to companies of all sizes?

There is a provision that is intended to benefit small companies in particular. According to this, the protection against dismissal only takes effect when there are more than ten employees at a start-up. So founders who are responsible for a still quite small company have it a little easier than with larger companies. However, those who rely on part-time employees must now start doing the math. If they work 20 hours a week, they have to include them with a factor of 0.5. If employees work 30 hours a week, the factor of 0.75 applies. Founders do not have to include managing directors and themselves as owners.

What notice periods do founders have to observe?

The notice period depends on how long the employee has been employed by the company. Unless otherwise agreed in an employment contract, the following applies: In a six-month probationary period, the notice period is two weeks. Those who have worked in a company for up to two years are entitled to four weeks' notice on the 15th or at the end of the month. Those who work longer than two years are entitled to one month always at the end of the month. Those who have worked for five years or more are entitled to two months, those who have worked for eight years or more to three months, and those who have worked for ten years or more to four months. These periods continue up to an employment period of 20 years, in which case it would be seven months - but then there should no longer be any talk of a start-up anyway.

How should founders proceed for a termination in concrete terms?

Notices of termination must be in writing, otherwise they are invalid. The boss just saying "you're fired" only works in Hollywood. According to the current status, termination by e-mail is also not permissible. Founders must either hand over the letter to their employee in person or send it by mail. In it, founders must state the reason for the termination and clearly state the date from which the employment relationship is to be terminated.