No Protection against Dismissal for Board Members

Overview


In this case before the German Federal Labor Court (BAG), the defendant (a large management consultancy) employed the plaintiff since 1996 and named him managing director in 2011. In 2014 the defendant properly terminated the contractual relationship with the plaintiff, but initially did not remove him from his position as managing director. A few months later, the plaintiff resigned as managing director before the end of the termination notice period. The plaintiff sued on the ground that he was actually a worker entitled to protection despite the appointment as managing director. The lawsuit was dismissed in the lower courts and the BAG rejected an appeal, making it clear that the employment protection law’s provision against dismissal does not apply to executive board members.