Layoff wave: companies face challenges under labour law

The German economy is currently experiencing a major wave of redundancies. Numerous companies, including industry giants such as Volkswagen, Bosch and Zalando, have announced extensive job cuts.
From the employees’ point of view, unless an amicable cancellation agreement is reached, the proper delivery of notices of termination is of great importance in this context. In a decision dated 20 June 2024 (case reference: 2 AZR 213/23), the Federal Labour Court (BAG) clarified that when a notice of termination is sent by registered letter, prima facie evidence suggests that the notice of termination was received within the usual postal delivery times. In the specific case, an employee had claimed that the notice of termination was not received until the following day, as it was posted outside the usual delivery times. However, the Federal Labour Court ruled that the employer had complied with its duty of service and that the notice of termination was deemed to have been received on the day it was posted.
This decision emphasises the importance of proper delivery of notices of termination. However, employers should bear in mind that a registered letter does not constitute reliable proof of the contents of the letter. In critical situations, especially with short deadlines, it is therefore advisable to hand over notices of termination personally under witnesses or to commission a courier service to document the content and delivery.