Menu
  • Locations
  • Services
  • Experts
  • Hot Topics
  • News & Knowledge
  • career
  • About us
  • Search
  • Press
  • Events & Webinars
  • Contact
  • Language
  • Berlin
  • Cologne
  • Dusseldorf
  • Frankfurt
  • Hamburg
  • Hannover
  • Kolbermoor
  • Munich
  • Nuremberg
  • Regensburg
  • Rosenheim
  • Stuttgart
  • Tax
  • Digital
  • Financial Advisory
  • Industries
  • Legal
  • Centers of Excellence
  • Tax & Digital
  • Advisory
  • News
  • Newsletter overview
  • Newsletter subscription
  • KI Study 2024
  • Values and Vision
  • Our Management Team
  • Our Partners
  • Our History
  • Our locations
  • Corporate Responsibilty
  • Tax Service Overview
  • Digital Tax CMS
  • Corporate Tax
  • Customs
  • Financial Services Tax
  • GreenTax & Energy
  • HR Taxes
  • Indirect Tax / VAT
  • International Tax & Permanent Establishments (ITP)
  • International Tax Desks
  • Mergers & Acquisitions Tax
  • Private Clients
  • Tax Controversy / Tax Disputes
  • Transfer Pricing
  • Digital Trends
  • Digital Partnering
  • Digital tools and solutions
  • End-to-end processes
  • AI in tax
  • SAP S/4HANA
  • International Corporate Income Tax rates (CIT rates)
  • Case Studies
  • Reporting & Regulatory
  • Digital Finance
  • Deal Advisory
  • Overview of all industries services
  • Banking/ Capital Markets
  • Insurance
  • oneSTART
  • Real Estate
  • SMEs
  • Overview of all legal services
  • Civil & Commercial Law
  • Climate Regulation & Energy Law
  • Corporate Law
  • Data Privacy & IT Law
  • Employment Law
  • Global Expatriate Service
  • Legal Operate
  • Litigation
  • Restructuring & Performance Management
  • Sustainability Services (ESG)
  • AI in tax
  • plAIground
  • Pillar Two
  • Sustainability Services
  • US tax & customs policy
  • E-Invoicing | ViDA
  • Country by Country Reporting (CbCR)
  • ESG Solutions
  • SAP S/4HANA
  • Business Planning
  • Refinancing & Distressed Situations
  • IPO Readiness
  • Advanced Analytics
  • Carve out
  • Partners Munich
  • Partners Berlin
  • Partners Dusseldorf
  • Partners Frankfurt
  • Partners Hamburg
  • Partners Hannover
  • Partners Cologne
  • Partners Kolbermoor
  • Partners Nuremberg
  • Partners Regensburg
  • Partners Rosenheim
  • Partners Stuttgart
  • Overview of all locations
  • Location Berlin
  • Location Dusseldorf
  • Location Frankfurt
  • Location Cologne
  • Location Hannover
  • Location Hamburg
  • Location Kolbermoor
  • Location Munich
  • Location Regensburg
  • Location Nuremberg
  • Location Rosenheim
  • Location Stuttgart
  • Environment
  • Society Engagement
  • Diversity
  • Kulturelles Engagement
  • HR Taxes Overview
  • Integrated Legal and Tax Advice
  • International Payroll and Shadow Payroll
  • International Assignments/ Global Mobility
  • International Employee Assignments & Project Business
  • Wage Tax
  • National payroll and travel expense accounting
  • Social Security Law & Labour Law
  • Work from Anywhere
  • HR Consulting
  • DAC 7
  • Compliance Manager
  • Comply (by Taxback International)
  • plAIground
  • VAT Health Check
  • CbCR Risk Analyser
  • WTS CbCR-2-XML
  • TPmanager
  • WTS CbCRmanager
  • Tax CMS
  • Cesop
  • GewSTmanager
  • Digital Process Automation
  • end-to-end income tax process
  • end-to-end VAT processes
  • end-to-end customs
  • end-to-end transfer pricing
  • property tax services
  • Energy management processes and systems
  • GRI 207: Tax 2019
  • digital tax CMS
  • Case Study Hartmann Gruppe
  • Case Study WTS TPcompiler
  • Case Study Calculation of transfer prices
  • Case Study CbCR Table I
  • Accounting & Reporting
  • Capital Markets
  • ESG Solutions
  • Carve out / PMI
  • Governance, Risk & Compliance
  • Business Partnering
  • Financial Services
  • Treasury
  • Concepts & Systems
  • SAP S/4HANA transformation
  • Optimization
  • Advanced Analytics
  • Performance
  • Program Management
  • Finance Transformation
  • Artificial Intelligence (AI)
  • Technology partner
  • M&A Strategy
  • Due Diligence
  • Fact Book
  • Valuation
  • Restructuring
  • Debt Advisory
  • Modeling Solutions
  • NOW@WTS
  • Press
  • Events & Webinars
  • Contact
English
German
  • English
  • German
WTS worldwide
  • WTS Global
  • Albania
  • Algeria
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Botswana
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Cape Verde
  • Central African Republic
  • Chad
  • Chile
  • China
  • Colombia
  • Congo Brazzaville
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Democratic Republic of Congo
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Equatorial Guinea
  • Estonia
  • Eswatini
  • Ethiopia
  • Finland
  • France
  • Gabon
  • Gambia
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Guinea-Bissau
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Liberia
  • Libya
  • Lithuania
  • Luxembourg
  • Macao
  • Madagascar
  • Malawi
  • Malaysia
  • Mali
  • Malta
  • Mauritania
  • Mauritius
  • Mexico
  • Moldova
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Namibia
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • North Macedonia
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Rwanda
  • São Tomé and Príncipe
  • Saudi Arabia
  • Senegal
  • Serbia
  • Sierra Leone
  • Singapore
  • Slovakia
  • Slovenia
  • Somalia
  • South Africa
  • South Sudan
  • Spain
  • Sri Lanka
  • Sudan
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • Zimbabwe
  • Services Clothing
    • Tax
      • Tax Service Overview
      • Digital Tax CMS
      • Corporate Tax
      • Customs
      • Financial Services Tax
      • GreenTax & Energy
      • HR Taxes
        • HR Taxes Overview
        • Integrated Legal and Tax Advice
        • International Payroll and Shadow Payroll
        • International Assignments/ Global Mobility
        • International Employee Assignments & Project Business
        • Wage Tax
        • National payroll and travel expense accounting
        • Social Security Law & Labour Law
        • Work from Anywhere
        • HR Consulting
      • Indirect Tax / VAT
        • DAC 7
      • International Tax & Permanent Establishments (ITP)
      • International Tax Desks
      • Mergers & Acquisitions Tax
      • Private Clients
      • Tax Controversy / Tax Disputes
      • Transfer Pricing
    • Digital
      • Digital Trends
      • Digital Partnering
      • Digital tools and solutions
        • Compliance Manager
        • Comply (by Taxback International)
        • plAIground
        • VAT Health Check
        • CbCR Risk Analyser
        • WTS CbCR-2-XML
        • TPmanager
        • WTS CbCRmanager
        • Tax CMS
        • Cesop
        • GewSTmanager
        • Digital Process Automation
      • End-to-end processes
        • end-to-end income tax process
        • end-to-end VAT processes
        • end-to-end customs
        • end-to-end transfer pricing
        • property tax services
        • Energy management processes and systems
        • GRI 207: Tax 2019
        • digital tax CMS
      • AI in tax
      • SAP S/4HANA
      • International Corporate Income Tax rates (CIT rates)
      • Case Studies
        • Case Study Hartmann Gruppe
        • Case Study WTS TPcompiler
        • Case Study Calculation of transfer prices
        • Case Study CbCR Table I
    • Financial Advisory
      • Reporting & Regulatory
        • Accounting & Reporting
        • Capital Markets
        • ESG Solutions
        • Carve out / PMI
        • Governance, Risk & Compliance
        • Business Partnering
        • Financial Services
        • Treasury
      • Digital Finance
        • Concepts & Systems
        • SAP S/4HANA transformation
        • Optimization
        • Advanced Analytics
        • Performance
        • Program Management
        • Finance Transformation
        • Artificial Intelligence (AI)
        • Technology partner
      • Deal Advisory
        • M&A Strategy
        • Due Diligence
        • Fact Book
        • Valuation
        • Restructuring
        • Debt Advisory
        • Modeling Solutions
    • Industries
      • Overview of all industries services
      • Banking/ Capital Markets
      • Insurance
      • oneSTART
      • Real Estate
      • SMEs
    • Legal
      • Overview of all legal services
      • Civil & Commercial Law
      • Climate Regulation & Energy Law
      • Corporate Law
      • Data Privacy & IT Law
      • Employment Law
      • Global Expatriate Service
      • Legal Operate
      • Litigation
    • Centers of Excellence
      • Restructuring & Performance Management
      • Sustainability Services (ESG)
    Services

    Learn more about our comprehensive services in the area of tax as well as relevant legal advice and financial advisory services.

    ESG

    Our sustainability services at a glance

  • Experts
  • Hot Topics Clothing
    • Tax & Digital
      • AI in tax
      • plAIground
      • Pillar Two
      • Sustainability Services
      • US tax & customs policy
      • E-Invoicing | ViDA
      • Country by Country Reporting (CbCR)
    • Advisory
      • ESG Solutions
      • SAP S/4HANA
      • Business Planning
      • Refinancing & Distressed Situations
      • IPO Readiness
      • Advanced Analytics
      • Carve out
    Hot Topics

    Overview of current tax, digital & advisory hot topics

    Ready for the game?
  • News & Knowledge Clothing
    • News
    • Newsletter overview
    • Newsletter subscription
    • KI Study 2024
    News & Knowledge

    Here you will find the latest news and specials on all aspects of taxation, digitization and financial & deal advisory.

  • career
  • About us Clothing
    • Values and Vision
    • Our Management Team
    • Our Partners
      • Partners Munich
      • Partners Berlin
      • Partners Dusseldorf
      • Partners Frankfurt
      • Partners Hamburg
      • Partners Hannover
      • Partners Cologne
      • Partners Kolbermoor
      • Partners Nuremberg
      • Partners Regensburg
      • Partners Rosenheim
      • Partners Stuttgart
    • Our History
    • Our locations
      • Overview of all locations
      • Location Berlin
      • Location Dusseldorf
      • Location Frankfurt
      • Location Cologne
      • Location Hannover
      • Location Hamburg
      • Location Kolbermoor
      • Location Munich
      • Location Regensburg
      • Location Nuremberg
      • Location Rosenheim
      • Location Stuttgart
    • Corporate Responsibilty
      • Environment
      • Society Engagement
      • Diversity
        • NOW@WTS
      • Kulturelles Engagement
    About us

    WTS at a glance: What makes us special and more information about WTS

    Interested in our art tours in Munich's Werksviertel? 

  • Search
31.07.2023

ECJ: Not all employer side missteps within mass dismissal proceedings lead to the invalidity of subsequent dismissals

Author bild polkowski-nathalie
Nathalie Polkowski
Head of Employment Law, Associated Partner
Lawyer
Certified specialist attorney for labor law
Munich
View Profile

In its recent ruling of July 13, 2023, the European Court of Justice (Case No. C-134/22) clarified that a breach of the employer's obligation to notify the Unemployment Agency in mass dismissal proceedings pursuant to sec. 17 para. 3 sentence 1 of the German Unfair Dismissals Act (KSchG) does not lead to the invalidity of the subsequent dismissals.


Background to the case

The European Court of Justice's decision was based on a question referred by the Federal Labour Court (case no.: 6 AZR 155/21 (A)). In the underlying action for protection against dismissal, the Federal Labour Court (BAG) had to decide on the validity of a dismissal after a mass dismissal procedure had been carried out.

The employer concerned had decided to completely shut down its business operations. As a result of this decision, it entered into negotiations with the works council on a reconciliation of interests, which at the same time served to conduct the so-called "consultation procedure" pursuant to sec 17 para.2 of the Protection against Unfair Dismissal Act (KSchG), which was required in the context of the mass dismissal procedure. The employer and the works council finally agreed on a reconciliation of interests without the employer having previously forwarded a copy of the notification addressed to the works council to the competent employment agency in accordance with the legal requirements of sec. 17 para.3 sentence 1 KSchG. Only then did the employer notify the Unemployment Agency of the collective dismissals (sec. 18 para.1 KSchG) and subsequently announced the dismissals.

Labour law background

The BAG posed the question of the consequences of a violation of the duty of notification stipulated in sec. 17 para.3 sentence 1 of the KSchG.  Pursuant to sec. 17 para.2 KSchG an employer who intends to dismiss a certain number of employees has to provide the works council in advance with certain information on the planned dismissals within the framework of the consultation procedure, in particular the reasons for the dismissals, the number and occupational groups of the employees to be dismissed, the dismissal periods, etc. The employer is obliged to inform the works council of the reasons for the dismissals. Pursuant to sec 17 para.3 sentence 1 KSchG, it must at the same time send a copy of these notifications to the competent Unemployment Agency.

Since sec. 17 para. 3 sentence 1 KSchG is the German implementation of the requirements of the EU Mass Dismissal Directive, but neither (i) the Directive, nor (ii) the German provision standardise consequences of errors in the event of infringements, the BAG was of the opinion that the protective purpose of the transfer to the Unemployment Agency had to be clarified, in particular as to whether this confers individual protection on employees.


The ECJ's decision

The ECJ ruled that the transfer did not confer individual protection, but rather served to inform the Unemployment Agency about the impending dismissals and to prepare it for an increased number of jobseekers as a result of the dismissals. Consequently, no individual protection for the individual employee could be derived from this, so that the employee could not invoke the invalidity of the dismissal in the event of mistakes being made.


Impact on the practice

It is clear after the ECJ's decision that the incorrect or omitted notification within the meaning of sec. 17 para. 3 sentence 1 KSchG does not lead to the invalidity of the subsequent dismissals. This decision was obvious insofar as the wording of the provision does not provide any indication of the intended individual protection of the individual employee.

However, the decision is surprising in view of the fact that for more than ten years the BAG had assumed that the respective dismissals were invalid in almost all cases in which sec. 17 of the KSchG was violated in mass dismissal proceedings. The BAG always derived this legal consequence from sec. 17 of the KSchG in conjunction with sec. 134 of the German Civil Code (Bürgerliches Gesetzbuch - BGB), taking into account the values of the EU Mass Dismissals Directive, which, in the BAG's view, is intended to provide maximum protection for employees. However, all these cases related to violations of sec. 17 para. 1 and para. 2 KSchG

In this context, it remains to be seen what consequences will arise in the future from other mistakes made in mass dismissal proceedings and whether case law will also no longer grant individual protection to them. Since sec. 17 KSchG does not provide for corresponding sanctions with regard to any of the requirements, it remains to be seen what follow-up decisions the BAG will make. Until then, it is advisable for employers to strictly comply with the legal requirements of sec. 17 KSchG in the case of planned mass dismissals in order not to risk the invalidity of the notices to be issued.

Author bild polkowski-nathalie
Nathalie Polkowski
Head of Employment Law, Associated Partner
Lawyer
Certified specialist attorney for labor law
Munich
View Profile
WTS Services
Service
Employment Law
Service
Civil & Commercial Law

Contact us today

Do you have any questions about our services or WTS? Please let us know. Please fill in our short contact form. We will get in touch with you as soon as possible.

Contact
Services
  • Tax
  • Digital
  • Financial Advisory
  • Industries
  • Legal
  • Centers of Excellence
Hot Topics
  • AI in tax
  • plAIground
  • Pillar Two
  • Sustainability Services
  • E-Invoicing | ViDA
News & Knowledge
  • Newsletter overview
  • Newsletter subscription
Experts
  • About us
  • Values and Vision
  • Our Partners
  • Corporate Responsibilty
© 2025 WTS Imprint Company Information Disclaimer Data Protection Statement GTCs supplier information