Terminations in small businesses: Obstacles and risks outside the scope of the Unfair Dismissal Protection Act

In companies that regularly employ less than ten people (known as ”small businesses”) in Germany, the Unfair Dismissal Protection Act does not apply. Terminations are therefore subject to fewer requirements. However, the fact that the Unfair Dismissal Protection Act does not apply does not mean that terminations in small businesses always go smoothly. Even outside the scope of the act, there are provisions and principles that can render terminations invalid and that employers should therefore be aware of in advance and during the termination process.