In practice, managing directors (Geschäftsführer) frequently try to attack the validity of a dismissal and bring unfair dismissal claims. In a recent decision, the Federal Labor Court (Bundesarbeitsgericht) has again rejected such claims. The court reiterates that managing directors do not enjoy rights of protection against dismissal if their appointment as managing director has been in place at the time notice of termination was given.
The German Dismissal Protection Act Does Not Apply to Managing Directors
Pursuant to section 14(1) no. 1 of the German Dismissal Protection Act (Kündigungsschutzgesetz, KSchG), the provisions on dismissal protection
“do not apply, within the operation of a legal entity, to the members of a corporate body which has been appointed to legally represent the legal entity“.