How to prepare a notice of collective redundancy correctly

When are the thresholds reached?

Section 17(1) of the Employment Protection Act (KSchG) links three elements: the individual undertaking, the number of employees regularly employed there, and the redundancies planned within 30 calendar days. Notification is required if, in establishments with more than 20 but fewer than 60 employees on a regular basis, more than five employees are to be made redundant. In establishments with at least 60 but fewer than 500 employees, the threshold is ten per cent of the regular workforce or more than 25 employees. In establishments with at least 500 employees, at least 30 redundancies must be notified.

The relevant unit is the establishment, not necessarily the company or the group as a whole. Where there are multiple sites, the definition of an ‘establishment’ must therefore be examined first. Centrally managed staff measures may require several separate notifications. Waves of redundancies staggered over time must be aggregated if they fall within the same 30-day window. Arrangements designed purely to circumvent the rules are risky.

Which terminations count as dismissals?

As a starting point, Section 17(1) of the Employment Protection Act (KSchG) covers all ordinary terminations by the employer – regardless of whether they are for operational, personal or behavioural reasons. Pursuant to Section 17(4) of the KSchG, only dismissals without notice are expressly excluded; these are not included in the calculation of the minimum figures. 

Under Section 17(1), second sentence, of the KSchG, other terminations initiated by the employer are treated as dismissals. These are included in the count without any further conditions. A termination agreement concluded at the employer’s instigation, specifically to avoid an otherwise necessary redundancy on operational grounds, must therefore be counted as a dismissal. The same applies to tripartite agreements for transfer to an employment and training company which are concluded at the employer’s instigation.

The count should be documented on an individual basis. The following details are required: the planned date of receipt of the notice of termination or the date of termination, the reason for and type of termination, the operational unit to which the employee is assigned, and their status. Errors frequently arise when different project lists use different reference dates or when the 30-day period set out in Section 17(1) of the German Employment Protection Act (KSchG) is not applied consistently to all types of termination.

How is the works council consulted?

If there is a competent works council, the employer must inform it in writing in good time and consult with it on ways to avoid or limit redundancies and to mitigate their consequences. The duty to provide information covers the reasons for the redundancies, the number of employees to be made redundant and those in regular employment, the occupational groups concerned, the proposed timeframe, the selection criteria and the criteria to be used for calculating any severance pay. At the same time, a copy of the notification to the works council must be forwarded to the Employment Agency; it must contain at least the mandatory information specified in section 17(2), first sentence, nos. 1 to 5 of the Employment Protection Act (KSchG) (section 17(3), first sentence, KSchG).

The consultation is a genuine consultative process. The employer must be open to suggestions from the works council without having to abandon the business objective. A decision that has already been irrevocably implemented may render the consultation meaningless if there is no longer any scope for adjustment.

The procedure should be documented by means of dated letters, annexes, minutes of meetings and responses. The notification under Section 17 of the KSchG must be distinguished from the consultation on individual dismissals under Section 102 of the BetrVG.

When is the consultation process concluded?

The consultation procedure under section 17(2) of the Employment Protection Act (KSchG) is deemed to have been concluded when the works council issues a final statement in accordance with section 17(3), second sentence, of the KSchG and this is attached to the notification. The procedure is also deemed to be concluded if the parties at the workplace agree that all attempts at reaching an agreement have been exhausted and the procedure is terminated. However, a formal declaration of conclusion is not required; what is decisive is whether the employer may reasonably assume that there is no longer any prospect of further, productive negotiations.

If no statement has been provided, the notification may be made in accordance with section 17(3), third sentence, of the German Employment Protection Act (KSchG) only if the employer can demonstrate credibly that they informed the works council at least two weeks before making the notification and if they set out the status of the consultations. The two-week period refers exclusively to the earliest possible date on which the notice may be filed, not to the end of the consultation procedure itself. A works council may shorten the procedure by issuing a final statement ahead of schedule, but may not block it beyond two weeks. If the notification lacks the mandatory information required under section 17(2), first sentence, of the KSchG, the consultation procedure has not been duly initiated. In this case, the employer cannot rely on Section 17(3), third sentence, of the German Employment Protection Act (KSchG), because the two-week period has not begun to run due to the lack of proper notification. The employer is not obliged to continue negotiations indefinitely if they have fully informed the works council and have made a genuine offer of open-ended consultations, but the works council fails to respond within a reasonable period.

A reconciliation of interests pursuant to Sections 111 and 112 of the Works Constitution Act (BetrVG) brings the consultation procedure to an end and is deemed to constitute the works council’s statement under Section 17(3), second sentence, of the Employment Protection Act (KSchG). This applies to a reconciliation of interests with or without a list of names, provided that it contains a sufficiently clear, comprehensive statement from the works council. However, the reconciliation of interests does not automatically replace all other requirements of the notification procedure; in particular, the notice of collective redundancy itself must contain all the mandatory information required under Section 17(3), fourth sentence, of the KSchG.

How is the notification submitted to the Employment Agency?

The notification must be submitted to the Employment Agency responsible for the company’s registered office. It must be received before the notices of termination are served. The notification must be accompanied by the information required by law, the works council’s statement or evidence of the status of information and consultation, and a copy of the notice sent to the works council.

The Federal Employment Agency provides forms and an upload service. The official form facilitates processing but does not exempt the submitter from the legal review. It is particularly important to ensure the correct allocation to the establishment, employee numbers, occupational groups and the period of redundancy.

A copy of the notification must be forwarded to the works council. Receipt and transmission should be documented in a verifiable manner. Redundancies may only be served once the required notification has been received by the relevant agency.

What does the ban on redundancies mean?

When it comes to the timetable, two requirements must be strictly distinguished. Firstly, the notice of collective redundancy must have been received by the relevant Employment Agency before the notices of termination are served on the employees. Secondly, the suspension of redundancies under Section 18 of the German Employment Protection Act (KSchG) determines the date from which employment contracts may be terminated. Redundancies subject to notification generally do not take effect until one month has elapsed following receipt of the notification (Section 18(1) KSchG). Within this period, redundancies may only take effect with the consent of the Employment Agency. The Employment Agency may, in individual cases, extend the period at the employer’s request, up to a maximum of two months following receipt of the notice (Section 18(2) of the German Employment Protection Act (KSchG)). 

According to established case law of the Federal Labour Court, the blocking period and the individual notice period run concurrently. The blocking period does not extend the statutory notice periods. Notice of termination may be given immediately after the notice has been received by the Employment Agency, provided it has been duly submitted. Only notices of termination with a notice period of less than one month are directly subject to the blocking period. If the notice period is shorter than the waiting period, the employment relationship is not terminated until the waiting period has expired. The notification prior to receipt of the notice of termination and the waiting period for the termination date must therefore be scheduled separately and subsequently combined into a joint timeline.

What are the consequences of formal errors?

A complete failure to give notice and a notice given before the consultation procedure has been completed are particularly high-risk scenarios. According to the Federal Labour Court’s ruling of 1 April 2026, the dismissals in question are invalid in both scenarios. Of particular relevance are the judgements 6 AZR 157/22 and 6 AZR 152/22; the summaries and judgements are published on the Federal Labour Court’s website.

There is no blanket answer regarding errors of content. On 25 June 2026, the Federal Labour Court clarified that, depending on the circumstances, dismissals may be valid despite incorrect information. A distinction must be made here between ‘recommended’ and ‘mandatory’ information. The omission of ‘recommended’ information under Section 17(3), fifth sentence, of the German Employment Protection Act (KSchG) has no effect on the validity of the dismissal; by contrast, the omission or incorrect provision of ‘mandatory’ information under Section 17(3), fourth sentence, of the KSchG renders the dismissal invalid. The notice is also available from the Federal Labour Court.

This distinction in legal consequences is not a free pass. The aim remains to ensure that the notice is free of errors, as a judicial review of individual cases causes delays and considerable uncertainty.

How do the notification of collective redundancies and works constitution relate to one another?

The consultation under Section 17 of the German Employment Protection Act (KSchG) may be combined with negotiations on the reconciliation of interests and a social plan, but it serves a distinct purpose under EU law. The procedures should be coordinated in terms of content and documented separately in legal terms.

In addition, the works council must be consulted prior to each individual dismissal in accordance with Section 102 of the Works Constitution Act (BetrVG). A completed consultation on collective redundancies does not replace this consultation. In the event of major operational changes, there are additional information obligations under Section 111 of the Works Constitution Act (BetrVG) and, where applicable, a reconciliation of interests involving a list of names.

Special procedures relating to protection against dismissal, such as official approvals, also run independently. The project plan must bring all these processes together without conflating them.

How should the timetable be structured?

The first steps involve defining the scope of the operation, determining staff numbers and drawing up 30-day scenarios. This is followed by the preparation of business decisions, the selection criteria and works council documentation. Consultation must begin early enough to allow for genuine consultation to take place before the notice is served.

The notification is only submitted once the process has been duly completed or after the statutory two-week period has expired. The receipt of notices of termination, official approvals, notice periods and the suspension of redundancies are then coordinated.

A centralised schedule of deadlines and documents minimises errors. It should be clear to every employee when each requirement was met. Where there are multiple sites or countries, centralised coordination with local sub-plans is recommended.

What documentation should be in place before notices of termination are served?

The following are required: a reliable list of employees, a calculation of the thresholds, documented definition of the business unit, notification to the works council, minutes of consultation meetings and a final statement or proof of the two-week notice period. In addition, there must be a notification, an acknowledgement of receipt, a copy sent to the works council and a cross-check against all letters of dismissal.

The data must be consistent. Discrepancies in occupational groups, employee numbers or redundancy periods across different documents create unnecessary vulnerabilities. Any changes made during the project should be tracked in a traceable manner.

It is advisable to obtain final approval before sending out the notices of dismissal. This involves a joint review of the mass redundancy notification, the works council consultation and the method of delivery.