Termination due to Special Occasions: Bankruptcy, the Employer’s Death and Reorganization Procedure

The employer’s right to terminate employment relationships has in a few special situations been broadened. Such circumstances are e.g. the employer’s bankruptcy, death or reorganization procedure. In the before mentioned situations it would be unreasonable for the employer to apply the usual notice periods.

If the employer is declared bankrupt or if the employer dies, the employment agreement may be terminated by either party regardless of its duration with a notice period of 14 days. Both bankruptcy and death are adequate reasons for termination as is, no special explanation is required.  The administrator of a bankruptcy estategives the termination notice on behalf of the bankruptcy estate, and the parties of the employer’s estate give it on behalf of the estate. The employee’s normal protection against termination yields in bankruptcy and death-related situations. It is in these situations possible to also give notice to the special groups such as pregnant employees and elected representatives of the personnel, if no employees will be left as employees for the bankruptcy estate.

During reorganization procedures the employer is entitled to terminate an employment agreement regardless of the employment relationship’s duration with a notice of two months. The right to give notice applies both to fixed-term agreements and agreements valid until further notice. The special groups, however, maintain their better protection. If an employee resigns in connection with a reorganization procedure, he/she must also follow the notice period of 14 days. The employer’s obligation offer work and training remains in force despite the reorganization procedure. For further information see [Obligation to Reassign and Offer Work]⁠ and [Obligation to Train].⁠