Termination for personal reasons: contents, causes, and template

I. Introduction

Definition of Termination for Personal Reasons

Termination for personal reasons is a dismissal of the employment relationship based on specific characteristics of the employee. These characteristics can include issues like performance problems, workplace behavior, or illness. The termination is therefore not due to economic changes or operational requirements but is directly related to the employee themselves.

What is a Termination for Personal Reasons?

Termination for personal reasons is one of the most common reasons for ending an employment relationship. It occurs when an employment contract is terminated due to specific characteristics of the employee, such as performance issues, workplace behavior, or illness. This type of dismissal is a sensitive topic in labor law and can have significant implications for both employees and employers.

It is therefore crucial to understand the legal foundations and requirements for an effective termination for personal reasons. Understanding the causes, such as performance issues or behavioral problems, is equally important to avoid potential conflicts.

This article will provide a detailed examination of the legal basis, causes, and procedures involved in termination for personal reasons. It will also address how to prevent such dismissals and offer recommendations for both employees and employers.

The goal of this article is to create an understanding of the complex issue of termination for personal reasons and to provide both employees and employers with valuable information and advice.

II. Legal Foundations

Legal Foundations for Termination for Personal Reasons

Labor law governs the termination of an employment relationship by the employer, including termination for personal reasons. The key legal provisions related to termination for personal reasons are found in the German Civil Code (BGB) and the Labor Court Act (ArbGG). Additionally, the Protection Against Dismissal Act (KSchG) may also be relevant, particularly for employees who enjoy special dismissal protection.

Permissible grounds for termination for personal reasons can include performance issues, workplace behavior, or illness. However, it is important to note that there are legal protection periods that prevent the employer from issuing a termination until certain conditions are met.

Dismissal Protection safeguards employees from arbitrary or unjustified dismissal by the employer. There are both general legal regulations that prohibit certain reasons for dismissal and special protections for certain groups of employees, such as pregnant women or employees with specific roles, like members of a works council.

To issue a valid termination for personal reasons, both formal and substantive requirements must be met. Formal requirements include, for example, the written form of the termination notice and adherence to certain deadlines. Substantive requirements, on the other hand, relate to the justification of the termination, the specification of reasons for dismissal, and the ability to prove those reasons.

It is crucial to understand the legal foundations and requirements for termination for personal reasons in detail to avoid conflicts and ensure that a dismissal is either validly issued or effectively challenged.

Relevant Sections for Termination for Personal Reasons

• Civil Code(BGB):Termination of the employment relationship.
• Arbeitsgerichtsgesetz (ArbGG)
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• Labor Court Act (ArbGG): Jurisdiction of labor courts in disputes related to employment terminations

It should be noted that these sections can vary depending on case law and applicable legislation.

What is Termination for Personal Reasons? Examples

Termination for personal reasons is a dismissal based on personal issues related to the employee, rather than operational or business-related reasons. Here are some examples of terminations for personal reasons:

1. Misconduct: An employee can be terminated for violating company rules, such as theft, embezzlement, or harassment.
2. Performance Issues: If an employee consistently fails to perform at an acceptable level, this could be a ground for personal termination.
3. Breach of Contract: An employee may be terminated for violating key provisions of their employment contract, such as disclosing company secrets.
4. Illness: Termination due to illness can be considered personal if it is related to the employee’s health condition and not business needs. This can happen if the illness significantly impacts the employee’s ability to perform their duties and no reasonable accommodations are possible.
5. It is important to note that in some countries, personal dismissals are subject to strict review and are only valid under certain conditions. The specific terms depend on the relevant legal framework and jurisdiction.

What Are Not Valid Reasons for Termination for Personal Reasons?

Reasons that are not valid for a termination for personal reasons include discriminatory motives such as racial, sexist, or other prejudicial grounds. Terminations based on political beliefs, religious beliefs, disability, or a serious illness are also considered invalid. Additionally, dismissals linked to participation in strikes or union-related activities, like works council duties, are likewise unlawful. It’s important to note that terminations made for illegal reasons are null and void, and cannot justify a dismissal protection procedure.

III. Causes for Termination for Personal Reasons

In which cases can termination for personal reasons occur?

A termination for personal reasons can occur for various reasons directly related to the employee's behavior or performance. Here are some of the most common reasons for personal termination:

1. Misconduct: An employee may be terminated for violating company rules, such as theft, embezzlement, or harassment.
2. Performance Deficiencies: If an employee consistently fails to perform at an adequate level, this could be a valid reason for termination for personal reasons.
3. Breach of Employment Contract: An employee may be dismissed if they violate key provisions of their contract, such as disclosing company secrets.
4. Illness: A termination due to illness can be considered personal if it is directly related to the employee’s health and not due to company-related reasons. This can occur when the illness prevents the employee from fulfilling their job duties and reasonable accommodations are not feasible.
5. It is important to note that termination for personal reasons may be subject to strict scrutiny in certain countries and is only valid under specific conditions. The exact terms and conditions depend on the relevant legal framework and applicable laws.

Insufficient Work Performance as a Reason for Termination

Termination due to poor work performance is a common reason for dismissal. However, specific legal requirements must be met to issue a valid termination:

1. Specific Allegation: There must be a clear and specific allegation of poor performance, which has been communicated to the employee in advance.
2. Opportunity for Improvement: The employee must be given a reasonable opportunity to improve their performance.
3. Legitimate Evaluation: The assessment of the employee's performance must be lawful, meaning it should be objective, understandable, and fair.

If these conditions are met, a termination due to poor work performance can be legally valid.

Workplace Behavior as a Reason for Termination

Workplace behavior can also be a valid reason for termination for personal reasons. However, legal requirements must also be fulfilled to ensure the termination is valid:

1. Specific Allegation: There must be a specific allegation of inappropriate behavior at the workplace, which has been previously communicated to the employee.
2. Legitimate Evaluation: The evaluation of the employee’s behavior must be lawful, i.e., objective, understandable, and fair.
3. Proper Warning: The employee must receive an appropriate warning before termination is considered..

It is important to note that certain types of behavior, such as discrimination or bullying, are protected by special dismissal rules and, in some cases, can even justify immediate dismissal. It is advisable to seek legal counsel before proceeding with such a termination.

Termination Due to Illness

Illness can be a reason for a termination based on personal reasons, but special caution is required. In Germany, there is specific dismissal protection for sick employees, which in certain cases prohibits the employer from issuing a termination.

1. Duration of Illness: Termination due to illness is usually only possible after a prolonged period of illness, typically after at least six months.
2. Reintegration Possibility: The employer must consider whether the employee can be reinstated if they recover and are fit to return to work.
3. Alternatives to Termination: Before considering termination, the employer must explore other solutions, such as changing the employee's position or reducing their working hours.

Age-Related Termination

Age is a sensitive topic when it comes to dismissals and cannot be used as the sole reason for termination. In Germany, age discrimination is prohibited under the General Equal Treatment Act (AGG).

Termination based on age is only permissible in rare cases, for instance, when there is a legal retirement age for a particular role or when the employee is no longer able to perform their duties due to age-related reasons.

Other reasons that may serve as the basis for a personal termination must also be carefully reviewed. In all cases, a valid termination must meet certain requirements, such as being formal and in writing, providing sufficient justification, and adhering to appropriate notice periods. An invalid termination can lead to claims for damages.

When is a Termination for Personal Reasons Invalid?

A termination for personal reasons can be invalid if certain legal requirements are not met. Here are some reasons why such a termination might be deemed invalid:

1. Faulty Justification: The termination must include a specific, well-supported reason. If the reason is unclear or insufficiently justified, the termination can be invalid.
2. Discrimination: Termination based on racist, sexist, or other discriminatory reasons is always invalid.
3. Dismissal Protection: Many countries have legal dismissal protection provisions for certain groups of employees, such as pregnant women or people with disabilities. If a termination violates these protections, it can be declared invalid.
4. Violation of Termination Procedure: A termination must follow a specific procedure and meet certain formal requirements, such as being issued in writing and adhering to legal notice periods. If these are not followed, the termination may be invalid.

It’s important to note that the validity of a termination depends on the specific circumstances of each case and the applicable legal precedents. It’s always advisable to seek legal advice before issuing or challenging a termination.

IV. Procedure for Termination for Personal Reasons

What is a Termination Declaration?

A termination declaration is a written document in which either an employer or an employee formally terminates the employment contract. The declaration must generally be in writing and meet certain formal requirements to be valid.

If a termination is issued by the employer, the document must include justifiable reasons for the decision. A valid termination must also be made within a specific period defined by law and the employment contract.

If an employee wishes to terminate the employment contract, they must also submit a written termination declaration, adhering to specific formal requirements. In some cases, the employer's prior approval may be necessary for the termination to take effect.

Both parties must understand their rights and obligations when issuing a termination declaration to ensure the termination is valid and to avoid potential legal issues.

What is a Dismissal Protection Lawsuit?

A dismissal protection lawsuit is a legal action taken by an employee to challenge the validity of a termination issued by the employer. The lawsuit is filed with a labor court and can result in the termination being declared invalid if certain conditions are met.

To file a dismissal protection lawsuit, the employee must prove that the termination violates legal provisions or the terms of the employment contract. Examples might include violations of dismissal protection laws or unlawful terminations based on age, race, gender, or disability.

The goal of a dismissal protection lawsuit is to either reinstate the employee or secure appropriate compensation for the loss of employment. Such lawsuits can be a crucial way for employees to protect their rights and seek justice in cases of unfair dismissal.

What Does a Mediation Process Look Like?

Mediation is an alternative method for resolving labor disputes, especially in cases of termination. It is a voluntary process where a neutral mediator brings both parties together to reach a mutually agreeable solution.

The mediation process typically involves the following steps:

1. Request: One of the parties submits a request to the appropriate mediation body to initiate the mediation process.
2. Preparation: The mediation body gathers relevant information and notifies both parties about the process.
3. Negotiation: The mediator meets with both parties to work towards a common solution. They listen to both sides and assist in resolving the conflict.
4. Agreement: If both parties reach a consensus, an agreement is drafted and signed by both parties.
5. Implementation: The agreement is put into practice, and both parties follow through with the agreed-upon terms.
6. Mediation offers an alternative to court proceedings and can benefit both parties. It is faster, more cost-efficient, and may help foster a better relationship between employer and employee. Additionally, it gives the parties more control over the outcome.

How is a Court Proceeding Structured?

A court proceeding regarding termination typically follows these steps:

1. Filing a Claim: The employee files a lawsuit against the employer, requesting the court to declare the termination invalid.
2. Complaint Submission: The employee submits the complaint to the relevant labor court, outlining the facts, arguments, and evidence supporting their case.
3. Defense: The employer receives a copy of the complaint and is given a set period to submit their defense.
4. Hearing: During the hearing, both parties present their arguments before a judge. Witnesses can be called, and evidence can be presented by both sides.
5. Judgment: The judge evaluates the arguments and evidence, and decides whether the termination was valid or invalid.
6. Appeal: If either party disagrees with the judgment, they can file an appeal and continue the case in a higher court.
7. Final Judgment: The judgment becomes legally binding if no appeal is filed, or once all appeals have been resolved. Both parties must then comply with the court's decision.

Is There a Right to Severance Pay?

A right to severance pay does not automatically exist in every termination case. Whether severance is granted depends on various factors, such as collective bargaining agreements, the employment contract, or applicable legal regulations. In some cases, severance pay can be negotiated between the employer and employee. It is advisable to discuss the individual circumstances and legal framework with a specialist lawyer.

Is There a Waiting Period for Unemployment Benefits?

Yes, there is typically a waiting period for unemployment benefits if termination occurs for operational or personal reasons. The duration of the waiting period depends on the circumstances of the termination and the employee's income. Generally, the waiting period lasts between one and twelve weeks, during which time no unemployment benefits are paid. However, there are exceptions to this rule, so it is recommended to seek individual advice from a labor agency or a specialist lawyer to understand the specific conditions.

Is Termination Without a Warning Possible?

Yes, termination without a prior warning is possible in certain cases, such as when the employee commits a serious offense, like theft or bullying, or when the trust between employer and employee is so severely damaged that continuing the employment relationship is unreasonable. However, it is important to note that every termination must meet certain formal requirements and be carefully justified to be legally valid.

What is the Difference Between Termination for Operational Reasons and Termination for Personal Reasons?

The difference between a termination for operational reasons and a termination for personal reasons lies in the cause of the employment termination.This occurs due to business-related factors, such as company restructuring, downsizing, or loss of orders. The reason for the termination is not related to the individual employee but rather to changes within the business.

This is based on factors specific to the employee. Reasons can include poor performance, violations of employment contract rules, workplace behavior issues, or illness. In this case, the focus is on the employee's situation, not the business itself.

V.Prevention of Termination for Personal Reasons

What Are Ways to Prevent Termination for Personal Reasons?

Termination for personal reasons can be a challenging situation for both employees and employers. To avoid such dismissals, several measures can be taken to create a positive work environment and protect employees:

1. Enhancing Work Performance: Employers can support their employees by offering opportunities for skill development and growth. Targeted training and development can help improve performance and prevent dismissals due to underperformance.
2. Communication and Conflict Resolution: Good communication and effective conflict resolution play a crucial role in preventing terminations for personal reasons. Employers should actively listen to their employees and address problems early to find mutually agreeable solutions. An open communication culture helps resolve conflicts faster and avoids dismissals.
3. Proactive Personnel Development: Proactive employee development can help employers strengthen their workforce's skills and increase motivation. Regular feedback discussions and goal-setting can allow employees and employers to work together to secure a successful future for the company.
4. Support During Illness: Employers should support employees during illness to avoid termination due to performance issues or absenteeism. This can include offering flexible working hours or remote work options to help employees transition back into their roles more easily.

Through performance enhancement, effective communication and conflict resolution, proactive personnel development, and support during illness, the risk of termination for personal reasons can be significantly reduced. It is essential for both employers and employees to collaborate and address problems early to prevent dismissal. A positive work environment, regular feedback sessions, and open communication can help keep employees motivated and satisfied, improving overall performance. It is also advisable to become familiar with legal regulations early on and, if in doubt, seek expert advice.

Template for Termination Due to Personal Reasons

Name and Address of Employer
[Company Name]
[Street Address]
[Postal Code, City]

Name and Address of Employee
[Employee Name]
[Street Address]
[Postal Code, City]

Termination for Personal Reasons of the Employment Relationship

Dear Mr./Ms. [Employee's Last Name],

We hereby terminate the employment contract concluded with you on [date of contract] in accordance with the notice period, effective as of [termination date], due to personal reasons. Unfortunately, we cannot expect any improvement in your health condition in the foreseeable future, which means that continued disruption to the company's operations is to be expected.

The works council has been informed of this decision and has given its approval.

We wish you all the best for your future and thank you for the collaboration thus far.

Kind regards,

[Signature]
[Employer’s Name]

VI. Conclusion

Summary of Termination for Personal Reasons

The subject of termination for personal reasons is a complex and sensitive legal area that is relevant for both employers and employees. There are numerous legal regulations and provisions governing the validity of such terminations, including the reasons that are considered justified and the requirements that must be met for the termination to be effective.

Employees have some level of protection against dismissals, and there are legal processes available to them if they believe their termination is unjustified or unlawful. Employers should be aware, however, that terminations are often associated with significant costs and legal disputes. Therefore, they should take all necessary steps to ensure that their dismissals are valid and compliant with legal regulations.

An important measure to prevent personal terminations is fostering employee performance, ensuring open communication and conflict resolution, and proactive personnel development and support during illness. Employers can also implement comprehensive personnel management that takes into account the needs and demands of all employees to create a fair and productive work environment.

In summary, personal terminations are a significant issue that requires careful consideration and actions to find a fair and legally compliant solution for all parties involved.