Case Study: High Severance Pay Due to Invalid Dismissal

Although young mothers are particularly protected by German labor law, they are affected by dismissals relatively often. Apparently, some employers view women as less employable after the birth of a child because they are subject to restrictions regarding the scope and scheduling of their working hours.

This was also the case for my client, who had only just returned to her workplace part-time after parental leave. She was unexpectedly dismissed and simultaneously placed on leave in true American fashion: “We no longer have any use for you. Please pack your things!”

Fortunately, my client had done everything right upon her return: she had submitted an application for part-time work during parental leave. Even during parental leave, it is possible to work up to 32 hours per week. This has the enormous advantage that parents can work nearly full-time while the special protection against dismissal remains in place.

My client’s employer was either unaware of this circumstance or the company simply did not care. In my experience, many companies actually dismiss employees “into the blue” to create a fait accompli. They do this knowing that, statistically, fewer than 9 out of 10 employees file a lawsuit against a dismissal; meaning they end up getting away with it quite cheaply.

However, if the matter ends up in court in that 1 out of 10 cases, it can become very expensive. A dismissal during parental leave is absolutely invalid without the prior consent of the state authority.

My client’s employer had to learn this lesson as well. Given the comfortable situation that the special protection against dismissal would last for more than another year, it was possible to negotiate an above-average severance package as a fresh start for my client. Combined with an excellent reference, my client can now apply for a new position at her leisure and without pressure.

Certainly, we could have fought to keep her job. However, I consider that desirable in very few cases. On the one hand, it says a lot about a company’s culture when it treats particularly vulnerable employees so poorly. On the other hand, no one should expose themselves to the pressure of continuing to work for a company that obviously does not value them, and should instead prefer to move to an appreciative employer.

In this case, the motto was: “All’s well that ends well!” How would you have decided; would you have fought for the job or preferred to force a settlement for a fresh start?

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Last updated on 25. June 2026

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