Kündigung (Termination) Rights in Germany and Austria 2026: A Plain-Language Guide

What Is Kündigung and Why Does It Matter in 2026?

Kündigung is the German legal term for termination – whether of an employment contract, a rental agreement, or a service contract. In Germany and Austria, termination is heavily regulated to protect employees and tenants from arbitrary or unfair actions. In 2026, key updates include stricter rules for mass layoffs in Germany and enhanced tenant protections in Austria following housing cost increases. This guide explains your rights in plain language, step by step.

What the Law Says: Key Legal Foundations

In Germany

The main law is the Bürgerliches Gesetzbuch (BGB), especially sections 620–630 for employment and 573–575 for tenancy. The Kündigungsschutzgesetz (KSchG) applies to businesses with more than 10 employees (since 2004). It requires that any termination be socially justified – meaning based on personal conduct, employee behavior, or urgent operational needs. For tenants, the Mietrechtsreform (as of 2025) requires landlords to have a legitimate interest (Eigenbedarf, breach of duty, or property redevelopment) to terminate a rental agreement.

In Austria

The Allgemeines Bürgerliches Gesetzbuch (ABGB) and the Angestelltengesetz (AngG) govern employment terminations. The Mietrechtsgesetz (MRG) protects tenants. Austrian law distinguishes between ordentliche Kündigung (ordinary termination with notice) and außerordentliche Kündigung (extraordinary termination without notice for cause). Since 2024, employers must provide a written reason for termination if the employee requests it within 14 days.

Step-by-Step: What to Do If You Receive a Kündigung

Step 1: Check the Form and Deadline

In both countries, a termination must be in writing (Schriftform). Verbal terminations are invalid. In Germany, an email or text does not suffice – a physical signed letter is required. In Austria, the law also requires a written document, but a signed PDF may be accepted if explicitly agreed. Check the notice period (Kündigungsfrist): For employees, the statutory minimum in Germany is 4 weeks to the 15th or end of a calendar month (BGB §622). In Austria, it ranges from 6 weeks (after 2 years of service) to 5 months (after 25 years) under AngG §20. For tenants, notice periods are typically 3 months in Germany (BGB §573c) and 3 months in Austria (MRG §33), but can be shorter in the first year.

Step 2: Determine If You Are Protected

In Germany, if you have worked more than 6 months in a company with over 10 employees, the KSchG applies. You must file a lawsuit within 3 weeks of receiving the termination letter (Klagefrist) – otherwise the termination becomes legally valid. In Austria, there is no general unfair dismissal law, but you can challenge a termination if it is discriminatory (e.g., based on gender, disability, or union activity) under the Gleichbehandlungsgesetz (GlBG). Tenants in both countries can challenge a termination in court within 3 months (Germany) or 1 month (Austria).

Step 3: Gather Evidence and Seek Help

Collect all documents: the termination letter, your contract, pay slips, and any communication. In Germany, contact the Betriebsrat (works council) if one exists – they may have a say in terminations (Mitbestimmungsrecht). In Austria, the Arbeiterkammer (AK) offers free legal advice for employees. For tenants, the Mieterverein (tenant association) in both countries provides low-cost support.

Step 4: Consider Your Options

If the termination is unfair, you can negotiate a severance package (Abfindung) in Germany – often 0.5 months’ salary per year of service. In Austria, severance is mandatory only after 3 years under the Abfertigung Neu system. Alternatively, file a complaint with the labor court (Arbeitsgericht) or tenancy court (Mietgericht). In Germany, you must act within 3 weeks; in Austria, within 14 days for extraordinary terminations.

Key Differences Between Germany and Austria

• General dismissal protection: Germany has a broad KSchG for most employees; Austria relies on specific anti-discrimination laws and collective agreements.
• Notice periods: Austrian law generally provides longer notice periods for employees after longer service (e.g., 3 months after 10 years) compared to Germany (up to 7 months after 20 years under BGB §622).
• Severance: In Germany, severance is only paid if agreed or if the employer offers it to avoid a lawsuit. In Austria, the Abfertigung Neu system guarantees severance after 3 years.
• Tenant protections: Austria’s MRG is more restrictive on landlord terminations, requiring a court order for many cases. Germany allows termination for Eigenbedarf (personal need) but with strict justification.
• Written reason requirement: Austria requires employers to provide reasons on request; Germany does not, except for extraordinary terminations.

Frequently Asked Questions (FAQ)

1. Can my employer fire me without a reason?

In Germany, if the KSchG applies, the employer must have a social justification. If not (e.g., small businesses with under 10 employees), they can terminate without reason but must still respect notice periods. In Austria, a reason is not required by default, but you can challenge discriminatory terminations.

2. What happens if I miss the 3-week deadline in Germany?

If you do not file a lawsuit within 3 weeks of receiving the termination letter, the termination is considered valid, and you lose your right to challenge it. This is a strict rule – act immediately.

3. Can my landlord terminate my lease because they want to move in?

Yes, in both countries, Eigenbedarf (personal need) is a valid reason. In Germany, the landlord must prove a genuine need (e.g., for themselves or close family). In Austria, the process is more bureaucratic and often requires a court decision.

4. Do I have to accept a termination during my probation period?

In Germany, during the first 6 months (Probezeit), the KSchG does not apply, and the notice period is 2 weeks. In Austria, the probation period is up to 1 month (or longer by collective agreement), and termination can be immediate without cause.

5. Can I get unemployment benefits after a Kündigung?

Yes, but you may face a waiting period (Sperrzeit) in Germany if you quit voluntarily or were fired for misconduct. In Austria, you can claim Arbeitslosengeld (unemployment benefit) after a termination, but a penalty may apply if you caused the termination. Check with the Bundesagentur für Arbeit (Germany) or AMS (Austria).

6. What if my employer terminates me verbally?

A verbal termination is invalid in both countries. You can continue working as if nothing happened. However, if you accept it (e.g., by not showing up), it may be considered a mutual agreement (Aufhebungsvertrag). Always demand a written letter.

Real Official Resources

• Germany – Employment: Bundesministerium der Justiz – BGB and KSchG
• Germany – Tenancy: BGB §§573–575
• Germany – Labor Courts: Bundesarbeitsgericht
• Austria – Employment: Rechtsinformationssystem (RIS) – search for AngG
• Austria – Tenancy: RIS – MRG
• Austria – Consumer Advice: Arbeiterkammer and Mietervereinigung

These official sources provide the full legal text and updates. For plain-language summaries, the Verbraucherzentrale (Germany) and AK (Austria) offer free guides.

This article is for informational purposes only and does not constitute legal advice. Laws change frequently, and individual circumstances vary. Always consult a qualified lawyer (Fachanwalt für Arbeitsrecht or Mietrecht) for your specific case.

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