Dismissal with notice of change - opportunities, risks and case law for employees and employers

One Change notice is a labour law instrument that has significant consequences for both employers and employees. It combines a ordinary Cancellation of the existing employment relationship with the simultaneous Offer, the employment relationship under changed conditions to continue.
This can be a reduction in working hours, a transfer to another location, an adjustment to the area of activity or even a reduction in pay.

Particularly in economically difficult times - or in the course of company reorganisations - dismissal with notice of change is often used as an alternative to dismissal with notice. In practice, it plays an important role in the region Sulingen, Bremen and Osnabrück especially for medium-sized companies, social organisations or Production company with several locations an important role.

1. formal requirements - clarity and certainty are crucial

As with any notice of termination, the notice of termination with In writing take place and signed by the employer in person. An e-mail or scan is not sufficient.
The Centrepiece The offer to continue the employment relationship on new terms and conditions must be attached to the notice of termination. This offer must formulated so concretely and clearly be that the employee knows exactly what he or she is getting into.

The new place of work, the future job, remuneration, working hours or other key conditions must be clearly labelled be. If the offer is too vague or leaves important details open, the termination notice may be invalid for this reason alone. Employers should therefore attach great importance to precise wording - and employees should check exactly what they are actually being offered.

Formal points such as the Compliance with the notice period, which Proper consultation of the works council (if available) and the Compliance with collectively agreed or company regulations play a decisive role in effectiveness.

2. material prerequisites - social justification

A notice of dismissal may only be given if it socially justified is necessary. This means that the employer must have comprehensible reasons why the change in working conditions is necessary.

The law distinguishes between personal, behavioural and operational reasons. In practice, operational reasons usually play a role - such as economic difficulties, organisational changes or the closure of a location.

The decisive factor is the principle of Proportionality. The employer must check whether there is a milder means of achieving the objective, such as a Transfer within the existing contractual framework, a Temporary change, or a amicable adjustment. The notice of termination is always the last resort („ultima ratio“).

3. deadlines and options for action - react in good time

Anyone who receives a termination notice should Act quickly. Because here, too, the three-week deadline for filing suit in accordance with Section 4 of the Dismissal Protection Act. A decision on how to respond to the offer of change must be made within this period.

There are two possibilities:

1. Acceptance subject to reservation (§ 2 KSchG): The employee accepts the offer of change, but declares that this is „subject to social justification“. At the same time Action for protection against change be submitted to the labour court. In this way, the job is initially retained while the court examines whether the changed conditions are lawful.

2. Rejection of the offer: The employee can reject the offer. In this case, the dismissal is deemed to be a termination notice - in which case Action for unfair dismissal are also raised within three weeks.

Employers should also be aware of this: If a dismissal with notice of change is worded incorrectly, it may fail in court, even though the operational reasons would have been viable in themselves.

4. case law from practice - two landmark cases

Case 1: Indeterminate offers are invalid

An electrical engineer had been employed by a company for many years when he received a notice of termination. The letter provided for a new allocation of tasks, but left open exactly which activities were to be carried out in future and at which location. The offer also did not contain any specific information on the location of the working hours or the job classification.

The employee accepted the offer with reservations and sued for a declaration that the change was socially unjustified. The Federal Labour Court ruled: A dismissal with notice of change is only effective if the offer of change Clear and determined is.
An employee must be able to decide „yes or no“ whether they wish to accept the new conditions. If key points are left open or are only described in general terms, there is a lack of the necessary certainty - the termination notice is then invalid.

This judgement shows how important precise formulations are. Employers should therefore set out exactly which activities, working hours and work locations will apply in future. Employees, on the other hand, should scrutinise every formulation critically - unclear or vague offers are a warning sign.

Case 2: Reduction in remuneration during the crisis - exceptionally permissible

In another case, a social welfare organisation found itself in a massive economic crisis. In order to avoid the threat of insolvency, the employer Extraordinary notices of termination with an expiry period out. The aim was to reduce employees' salaries in order to save the organisation.

The Federal Labour Court made it clear that such a dismissal with Exceptionally permissible, when they are Averting a concrete risk of insolvency is required and milder means are not sufficient. However, the planned measures must proportionate The interventions must not go beyond what is reasonable for the employees.

The court also emphasised that employers must make their decision prove resilient must be provided: with figures, restructuring plans and evidence that alternative measures (e.g. short-time working or a collective restructuring agreement) were examined but were not sufficient.

In practice, this means that it is possible to give notice of termination to reduce pay - but only if it is well justified and documented. Employers should always prepare such a measure with legal support. Employees should check whether the alleged economic reasons are actually comprehensible and whether the reduction is appropriate.

5. tactical considerations for both sides

For employees:

• Check the letter carefully - especially whether the new conditions are described clearly and completely.

• Pay attention to the deadline of three weeks from access.

• One Acceptance subject to reservation protects your rights while you remain employed.

• Have the offer legally checked at an early stage - there is often room for negotiation, e.g. regarding severance payments or alternative contractual arrangements.

For employers:

• Formulate the change offer precisely - especially with regard to job descriptions, place of work and remuneration.

• Check in advance whether the planned measure is really the „last resort“.

• Involve the works council properly and document the consultation.

• In crisis situations, economic data and reorganisation strategies should be fully verifiable.

• Seek legal advice at an early stage to avoid formal errors - a small linguistic blunder can derail the entire measure.

6 Regional specialities - experience counts

In the region Sulingen, Bremen and Osnabrück We regularly see cases in which dismissals with notice are linked to relocations, changes of function or adjustments to working hours.

Particularly in companies or social institutions that are bound by collective agreements, additional regulations often apply that must be observed. Local labour court practice - for example in Osnabrück or Bremen - also plays a role in the assessment.

An early and realistic assessment by a law firm that is familiar with these regional particularities can be decisive - both for the enforcement of employee rights and for legally secure structuring on the employer's side.

Conclusion

The notice of termination is a fine but sharp instrument of labour law. It offers employers the opportunity to react flexibly to operational changes, but at the same time is bound by strict legal limits.
For employees, it often means uncertainty - and the need to make strategic decisions in a short space of time.

Whether for restructuring, in a crisis or in a conflict over working conditions: The success of a notice of termination almost always depends on its formal precision, the social justification and the correct tactical approach from.

As a law firm specialising in employment law, we advise and represent both employees and employers competently in all matters relating to dismissal, contract amendments and company restructuring.

If you labour law If you need support or further information, we will be happy to assist you at our locations in Sulingen, Bremen, Osnabrück or online.

❓ FAQ

1 What is a notice of termination?
A notice of termination with change of contract does not completely terminate the existing employment relationship, but at the same time offers continuation under changed conditions - for example with new working hours, a different job or lower pay.

2. when is a dismissal with notice of change lawful?
It is only effective if it is socially justified. This means that the employer must provide operational, personal or behavioural reasons and the measure must be proportionate. In addition, the offer of change must be clearly and specifically formulated.

3. what period applies in the event of a notice of termination?
Within three weeks a complaint must be filed with the labour court from the date of receipt - either as a Action for protection against change (with acceptance subject to reservation) or as Action for unfair dismissal (in case of rejection).

4. may an employer reduce the salary by giving notice of change?
Only in exceptional cases - for example to avert a specific economic crisis or insolvency. The employer must prove the necessity and exhaust all milder means. Without a comprehensible justification, a salary reduction is generally invalid.

5 What should employees do after a notice of dismissal?
Keep calm, make a note of the deadline, check the letter carefully and seek legal advice quickly. In many cases, there is a good chance of fending off the change or negotiating a better solution.

6 What should employers bear in mind when giving notice of termination?
The offer must be clearly formulated, the social reasons documented and the works council properly involved. Errors in form, deadline or specificity often lead to invalidity.