BAG Ruling on Collective Redundancy Notifications: Errors Render Dismissals Invalid

BAG Ruling on Collective Redundancy Notifications: Errors Render Dismissals Invalid
  • 04/14/2026
  • Reading time 3 Minutes

The hopes of employers for a more flexible approach to collective redundancy notifications have not materialized. After years of legal dispute and a referral to the European Court of Justice (ECJ), it is now clear that errors in collective redundancy notification procedures continue to result in the invalidity of dismissals.

In two parallel proceedings decided on April 1, 2026, the German Federal Labour Court (Bundesarbeitsgericht – BAG) ruled that dismissals issued without the required collective redundancy notification or before the proper completion of the notification procedure are invalid.

The Underlying Cases

In one case (6 AZR 157/22), the employer failed to submit a collective redundancy notification to the Employment Agency. In the other case (6 AZR 152/22), the employer did submit a notification, but did so before completing the consultation process with the works council.

In both cases, the BAG held that the dismissals were invalid due to errors in the notification procedure. The Court stated that dismissals issued without the required collective redundancy notification are invalid. The same applies where a collective redundancy notification is submitted before the consultation procedure with the works council has been completed. Accordingly, both decisions were rendered against the employers.

Assessment of the Decisions

From an employer’s perspective, the BAG’s decisions are disappointing. However, in light of the clear guidance provided by the ECJ in response to the BAG’s preliminary references (ECJ judgments of October 30, 2025 – C-134/24 [Tomann] and C-402/24 [Sewel]), the outcome is not surprising. The ECJ held that the Collective Redundancies Directive (98/59/EC of July 20, 1998) can only achieve its purpose if the prescribed procedure is followed and the notification is complete. Any simplification of the administrative requirements relating to collective redundancy notifications would therefore require legislative action.

Consequences for Employers

The BAG’s decisions establish a strict standard for practice and make clear that the collective redundancy notification procedure is not a mere formality. Errors in the notification process directly affect the validity of all dismissals concerned. Procedural defects cannot be remedied retrospectively.

Employers must ensure that the consultation procedure with the works council has been completed before submitting a collective redundancy notification. The notification may only be filed with the Employment Agency after the consultation process has been concluded. In addition, it is essential to ensure that all mandatory statutory information is included in the notification and that the entire process is properly documented. Dismissals may only be issued thereafter.

Conclusion

With these decisions, the BAG has established clear standards for practice. The collective redundancy notification procedure is a mandatory prerequisite for the validity of dismissals in the context of collective redundancies. Procedural errors have immediate adverse consequences for employers and cannot be cured retrospectively.

We would be pleased to assist you in conducting collective redundancy procedures in a legally compliant manner and to advise you on specific individual cases.

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Author of this article

Dr. Theofanis Tacou, LL.M.

Partner

Attorney-at-Law (Rechtsanwalt), Specialist Lawyer in Labor Law, Dikigoros

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