Your 10-Step Checklist: What to Do When You’re Fired in Germany

So, you’ve just been handed a job termination notice. Let’s be real: it stings. But before you let panic take over or start imagining worst-case scenarios, I’m here to guide you through this process. Take a deep breath. We’re going to break free from this cycle, and I’ll show you how.

If you haven't received a formal termination yet but suspect it’s coming or your contract may not be renewed, I highly recommend reading my blog post titled About to Lose Your Job? Act Now!.

1. Don’t Panic – Stay Calm and Professional

The first thing you might feel is the urge to react—anger, frustration, even fear. I get it. But here’s the thing: don’t act out. This is not the time to burn bridges with your employer. In fact, staying calm and professional can actually work in your favor. Why? Because down the line, you may need their cooperation for negotiations, references, or even a better severance package.

So, take a step back and ask yourself: How can I keep this door open for future possibilities? You’ll be glad you did.

2. Understand the Legal Grounds for Termination

In Germany, your employer can’t just fire you without a valid reason. They must follow the rules under the Kündigungsschutzgesetz (KSchG), which protects employees from unjustified terminations. If you’ve worked for more than six months in a company with more than 10 employees, they need a valid reason to let you go, such as:

• Personal reasons (e.g., long-term illness).

• Behavioral reasons (e.g., misconduct).

• Operational reasons (e.g., restructuring or eliminating your position).

Take a moment and ask yourself: Does their reason for letting me go seem valid? If not, there could be options for challenging it.

3. Check the Notice Period – What Does Your Contract Say?

The law requires your employer to give you a notice period before termination. However, if your employment contract specifies a different notice period (like three months), then the contract takes precedence. If no specific period is mentioned in the contract, the statutory notice period applies, which is typically four weeks, and increases with the length of your employment.

Now is the time to review your contract and ask yourself: Is my employer following the rules outlined in the contract or law?

4. Negotiate for Severance Pay (Abfindung) and Career Coaching

Severance pay in Germany isn’t mandatory but is often offered as a way to avoid legal disputes. The typical formula for severance is half a month’s salary for each year you worked. So, if you worked for six years, you might expect a severance equivalent to three months' salary.

But here’s where you can get strategic: instead of just focusing on the money, think about what will help you set yourself up for success in the future. One excellent option is to ask your employer to include career coaching as part of your severance package.

Why career coaching? It’s an investment in your future. A good career coach can help you navigate the job market, refine your skills, and land your next role faster. Career coaching typically costs between €1,500 and €3,000, and by presenting this option to your employer as a service rather than requesting more severance, you make it easier for their budget. You’re not asking for more money but rather for a service that will help you succeed.

You could say something like: "The job market is tough right now, and career coaching would really help me transition successfully. Would you be open to including this in my severance package?"

Remember, it’s not just about the money—it’s about giving yourself the best chances of success moving forward.

If you'd like to learn the details on how to negotiate a severance package and what to include, be sure to read my guide, "Negotiating a Severance Package in Germany: What You Need to Know."

5. Register with the Employment Agency (Arbeitsagentur) Immediately

This step is crucial. You must register as jobseeking with the Arbeitsagentur within three days of receiving your termination notice. After that, on the very first day you are unemployed, you must register as unemployed. This is key to ensuring you start receiving your unemployment benefits (Arbeitslosengeld I) as soon as possible.

Finally, don’t forget to register for unemployment benefits once you’re officially unemployed. Failing to register on time could result in a reduction of your benefits for each day of delay, so make sure you’re on top of it.

Have you taken care of these steps yet? They’re simple but critical.

6. Inform Your Health Insurance Provider

In Germany, your health insurance is linked to your employment, so losing your job can affect your coverage. Once you're unemployed, be sure to inform your health insurance provider that your employment status has changed and that you’ve registered with the Arbeitsagentur. If you’re receiving unemployment benefits, the Arbeitsagentur will cover your health insurance contributions. If not, you’ll need to arrange to pay for it yourself to maintain coverage.

Have I informed my insurance provider? This step ensures you stay covered without any hiccups.

7. Legal Action? Consider Filing a Kündigungsschutzklage

If you believe your termination isn’t lawful, you have three weeks to file a Kündigungsschutzklage (dismissal protection lawsuit) with the labor court. Consulting with an employment lawyer is highly recommended. Many cases like this end in settlements that often lead to a higher severance or even reinstatement of your job.

Think about it: Is this an option worth exploring in my situation?

8. Gather Your Documents – Don’t Leave Without These

Before you leave your job, make sure you collect all the necessary paperwork:

• Your employment contract.

• The termination letter.

• A reference letter (Arbeitszeugnis), which is crucial for future job applications in Germany. You are legally entitled to a positive reference letter.

• Your salary records and any outstanding payments.

Ask yourself: Do I have everything I need for my next steps? These documents are essential for what comes next.

9. Use This Time to Plan and Reflect

This might not feel like it now, but this can be an opportunity. You’re at a crossroads, and that means you have a chance to explore new horizons. Consider:

• Do you want to pursue further education or training? The Arbeitsagentur might even offer financial support for it.

• Is this the time to expand your network or attend job fairs to open up new opportunities?

• Would career coaching help you better navigate this transition and set clear goals for your future?

Now is the perfect time to think: What do I want my next chapter to look like, and how can I start building a life I love?

10. Take Care of Yourself – Your Well-Being Comes First

Let’s be honest: losing your job can mess with your head. But you have the power to take control of your mental health during this time. Reach out to friends and family for support, and if you’re feeling overwhelmed, consider seeking professional counseling or mental health services. You’ve got this—one day at a time.

Take the Next Step – Build Your Blueprint

Navigating a job loss isn’t easy, but it can be the beginning of something new. If you’re ready to explore new possibilities and take charge of your next steps, this is the time to build your blueprint for the future.

As a coach, I work with people like you who are looking to break free from old patterns and set themselves up for success. Whether you’re facing a career transition or simply need guidance on your next move, I’m here to help. Feel free to explore my coaching services if you think a tailored approach could help you navigate this change.

Need help figuring out your next move? Book a free call with me today, and let’s map out your new blueprint together. Do you have any questions? Feel free to contact me.

Let me know in the comments below if this article was helpful for you and what other topics you'd like me to cover next. Your feedback helps me create more content to support you on your journey.

Until our next breakthrough!