Can an employee be dismissed if they receive Krankengeld?

The mere fact that an employee receives Krankengeld (i.e. is on long-term sick leave) is not, by itself, a sufficient reason for an employer to dismiss them directly. In Germany, such a dismissal is subject to very strict legal conditions:

1. Protection against dismissal during sickness

There is no “absolute ban” that completely prohibits an employer from dismissing an employee while they are on sick leave or receiving Krankengeld.

However, dismissal on grounds of illness is considered highly sensitive and is subject to strict judicial scrutiny (under § 1 of the Dismissal Protection Act – Kündigungsschutzgesetz, KSchG).

The courts do not regard mere absence from work or the fact of receiving Krankengeld as a sufficient justification for dismissal.

2. When is dismissal permissible? (Krankheitsbedingte Kündigung)

Dismissal is only permissible if:

• the illness or sick leave continues for a very long time (for example, several months or even years),

• there is no realistic prospect of your returning to work in the near future (on the basis of a clear medical assessment),

• the continuous absence causes substantial harm to the company (for example, disruption of operations, significant costs for replacement staff, etc.),

• the employer has exhausted all “less severe” alternatives (changing your department, part-time work, occupational rehabilitation, and so on).

3. Even in such cases:

The employer must prove all of the above conditions in detail before the labour court.

They must consult the works council (Betriebsrat), where one exists, and comply with all statutory notice periods.

The employee has the right to file a dismissal protection claim (Kündigungsschutzklage) within three weeks in order to challenge the dismissal.

4. Practical summary:

• The mere fact of receiving Krankengeld never means automatic or “legally obvious” dismissal.

• Dismissal is possible only in very rare situations and under strict legal procedures.

• Many cases end in court in favour of the employee if the employer has not fully complied with all of the conditions mentioned above.

Important advice:

If you receive a Kündigung while you are on Krankengeld,

• immediately consult a labour-law attorney or your trade union,

• you must file an objection (Klage) within three weeks from the date you receive the notice of dismissal.

Conclusion:

An employer is not allowed to dismiss an employee merely because they receive Krankengeld or are on long-term sick leave, unless the strict legal conditions are fulfilled and a court confirms this.

In most cases, employees are strongly protected by German labour law.

The website’s editorial and writing team strives to provide accurate information based on extensive research and consultation of multiple sources. However, errors may still occur or some details may be incomplete or not fully verified. Therefore, the information contained in these articles should be regarded as a preliminary reference only, and you should always contact the competent authorities for definitive and binding information.