Monetary compensation paid to an employee upon termination of employment, typically negotiated during dismissal protection proceedings (Kündigungsschutzklage). Not legally required but standard practice — usually 0.5 monthly salaries per year of employment.
Read more: Firing an Employee in Germany →In employment law: a formal written warning to an employee for misconduct, required before most conduct-based dismissals. In commercial law: a cease-and-desist letter demanding that a party stop a particular behavior (e.g., trademark infringement, unfair competition).
Read more: Firing an Employee in Germany →First-instance court handling civil disputes up to €10,000. Attorney representation is optional but recommended. Appeals go to the Landgericht.
Read more: How German Courts Work →The legal requirement to be represented by a German-admitted attorney (Rechtsanwalt) in proceedings before the Landgericht and higher courts. Applies to all civil claims above €10,000.
Read more: How to Sue in Germany →Specialized court handling employment disputes including wrongful dismissal claims, wage disputes, and discrimination cases. First instance has no attorney requirement, but most parties are represented.
Read more: Firing an Employee in Germany →Employee-elected body with statutory co-determination rights under the Betriebsverfassungsgesetz (BetrVG). Must be consulted before any dismissal (§ 102 BetrVG). Failure to consult renders the dismissal void.
Read more: Works Councils in Germany →Federal law governing workplace co-determination. Establishes works council rights including consultation on dismissals, co-determination on working conditions, and participation in operational changes.
Read more: Works Councils in Germany →Germany's highest court for civil and criminal matters. Hears appeals on points of law only (Revision). Located in Karlsruhe.
Read more: How German Courts Work →The primary codification of German private law, covering obligations, contracts, property, family, and succession. Enacted in 1900 and continuously updated. Central to virtually all commercial litigation in Germany.
Read more: Breach of Contract Under German Law →A sworn written statement used to present facts in interim injunction proceedings (einstweilige Verfügung), where full evidentiary proceedings are not possible due to urgency.
Read more: Interim Injunctions in Germany →Statutory attorney fee (1.0× base fee under the RVG) earned when a case is settled rather than decided by judgment. Incentivizes early resolution.
Read more: German Litigation Costs Explained →Emergency court order obtainable within days to prevent irreparable harm. Requires demonstration of an underlying claim (Verfügungsanspruch) and urgency (Verfügungsgrund). Common in IP, non-compete, and unfair competition cases.
Read more: Interim Injunctions in Germany →Court proceeding under § 722 ZPO to recognize and enforce a foreign judgment in Germany. Required for US judgments, which are not directly enforceable due to the absence of a bilateral enforcement treaty.
Read more: Enforcing a US Judgment in Germany →Title awarded by the German bar association to attorneys who demonstrate specialized expertise through coursework and case experience. Common specializations: Arbeitsrecht (employment law), Handels- und Gesellschaftsrecht (commercial and corporate law).
Read more: How to Sue in Germany →Federal law establishing court fee schedules for civil litigation. Fees are calculated based on the amount in dispute (Streitwert) and must be paid upfront when filing a lawsuit.
Read more: German Litigation Costs Explained →The legal representative of a GmbH, appointed by the shareholders. Bears personal liability for certain obligations including tax compliance, social security contributions, and filing for insolvency.
Read more: Setting Up a GmbH for Foreign Investors →Germany's most common corporate form. Requires €25,000 minimum share capital (half due at registration), notarized articles of association, and commercial register entry. Over one million GmbHs are registered in Germany.
Read more: Setting Up a GmbH for Foreign Investors →Private agreement between GmbH shareholders supplementing the articles of association. Typically covers transfer restrictions, anti-dilution provisions, deadlock resolution, and exit mechanisms.
Read more: Shareholder Disputes in Germany →The constitutional document of a GmbH, notarized and filed with the commercial register. Defines share capital, shareholder rights, management structure, and decision-making procedures.
Read more: Setting Up a GmbH for Foreign Investors →Mandatory first hearing in German labor court proceedings where the judge attempts to negotiate a settlement. Takes place 2-4 weeks after filing. Approximately 30-40% of cases settle at this stage.
Read more: Firing an Employee in Germany →Federal law governing commercial transactions, merchant obligations, and commercial partnerships. Relevant for non-compete agreements (§§ 74-75f HGB) and the duty to inspect goods (§ 377 HGB).
Read more: German Non-Compete Agreements →Mandatory negotiation between employer and works council before major operational changes (Betriebsänderungen) such as plant closures or mass layoffs. Not a social plan — focuses on whether and how the change proceeds.
Read more: Works Councils in Germany →Specialized divisions within Landgericht courts staffed with experienced commercial judges and lay judges with business expertise. Handle commercial disputes between merchants.
Read more: How German Courts Work →Mandatory compensation (minimum 50% of last annual salary) that employers must pay to employees bound by a post-termination non-compete clause. Required under § 74 HGB — without it, the clause is non-binding on the employee.
Read more: German Non-Compete Agreements →The formal written complaint filed to initiate a lawsuit in German courts. Must contain the factual basis, legal arguments, evidence, and a specific request for relief (Antrag). Filed by the plaintiff's attorney at the competent court.
Read more: How to Sue in Germany →Federal law protecting employees from unfair dismissal. Applies to companies with more than 10 employees and to workers with at least 6 months of tenure. Requires a "socially justified" reason for termination.
Read more: Firing an Employee in Germany →Lawsuit filed by an employee within 3 weeks of receiving a termination notice (§ 4 KSchG). If the employee misses this deadline, the dismissal is considered valid regardless of any legal deficiencies.
Read more: Firing an Employee in Germany →First-instance court for civil claims above €10,000 and all commercial matters. Mandatory attorney representation. Decisions by a panel of 3 judges (or 1 judge for simpler cases). Appeals go to the Oberlandesgericht.
Read more: How German Courts Work →Simplified court order for undisputed monetary claims. Issued without judicial review of the merits. If the debtor does not file an objection (Widerspruch) within 2 weeks, the creditor obtains an enforceable Vollstreckungsbescheid.
Read more: Sued in Germany — What to Do →A reasonable additional period that the creditor must grant to the debtor before exercising secondary remedies (withdrawal or damages) for breach of contract. Required under §§ 281, 323 BGB.
Read more: Breach of Contract Under German Law →Appellate court reviewing Landgericht decisions on both facts and law (Berufung). Also first instance for certain matters including international arbitration enforcement. Germany has 24 OLGs.
Read more: How German Courts Work →Federal law implementing the EU Product Liability Directive. Imposes strict liability (no fault required) on manufacturers for defective products causing personal injury or damage to private property. Capped at €85 million for personal injury.
Read more: Product Liability in Germany →A lawyer admitted to practice before German courts. Only a Rechtsanwalt can represent parties in Landgericht proceedings and above. Foreign lawyers cannot appear in German courts without local admission.
Read more: How to Sue in Germany →Federal law establishing statutory attorney fee schedules based on the amount in dispute (Streitwert). Fees include a procedural fee (1.3×), hearing fee (1.2×), and settlement fee (1.0×), plus 19% VAT.
Read more: German Litigation Costs Explained →Monetary compensation for losses caused by breach of contract or tort. German law follows the principle of Totalreparation (full compensation) — the injured party should be placed in the position they would have been in without the breach.
Read more: Breach of Contract Under German Law →Mandatory comparison of employees for operational dismissals. Employers must select for dismissal the employee who would be least affected, considering tenure, age, family obligations, and disability status (§ 1(3) KSchG).
Read more: Firing an Employee in Germany →Binding agreement between employer and works council compensating employees for disadvantages caused by operational changes. Typically includes severance formulas, retraining measures, and transfer company arrangements.
Read more: Works Councils in Germany →Procedure allowing a majority shareholder (holding 90-95% of shares) to compel minority shareholders to sell their shares at a judicially determined fair price. Governed by §§ 327a-f AktG.
Read more: Shareholder Disputes in Germany →The monetary value assigned to a legal dispute, used to calculate court fees (GKG) and statutory attorney fees (RVG). Determined by the court based on the plaintiff's claim. Directly controls the total cost of litigation.
Read more: German Litigation Costs Explained →The duty of loyalty owed by shareholders and managing directors to the company and fellow shareholders. In a GmbH, the intensity of this duty depends on the company structure and is strongest in closely-held companies.
Read more: Shareholder Disputes in Germany →Time limit after which claims become unenforceable. Standard period: 3 years from end of year of knowledge (§ 195 BGB). Special periods apply: 2 years for sales defects (§ 438 BGB), 3 weeks for unfair dismissal claims (§ 4 KSchG).
Read more: Statute of Limitations in Germany →Judgment entered against a party who fails to respond or appear. In German procedure, the court grants the opposing party's claims without examining the merits. Can be challenged within 2 weeks via Einspruch (objection).
Read more: Sued in Germany — What to Do →Post-termination restriction preventing a former employee from working for competitors. Under German law (§§ 74-75f HGB), enforceable only if: in writing, maximum 2 years, includes mandatory compensation (Karenzentschädigung) of at least 50% of salary.
Read more: German Non-Compete Agreements →A claim filed by the defendant against the plaintiff within existing proceedings. Must be related to the original claim or fall within the same court's jurisdiction. No additional court fees are required.
Read more: Sued in Germany — What to Do →Federal law governing all civil court proceedings in Germany. Covers jurisdiction, service of process, evidence, hearings, judgments, appeals, enforcement, and interim relief. The procedural counterpart to the BGB.
Read more: How to Sue in Germany →