The German Government published a draft legislation which would facilitate the dismissal of so-called “risk takers” in the German financial sector. This is one of various measures by which the German Government intends to address upcoming Brexit challenges and to increase the attractiveness of Germany as business location for financial institutions currently based in the UK.
Current Legal Situation
German employees are benefitting from extensive protection against dismissal. Under German labor law, the termination of an employment relationship requires a valid justification (e.g., redundancy or misconduct) for which the German labor courts have set high standards. Therefore, the affected employee is often in a good position to challenge the validity of the termination and claim the continuation of the employment relationship before court.