Essential Tips on what to do when you are losing or changing job in Germany in 2025

What to do when you are losing or changing job in Germany is a comprehensive guide that contains step-by-step information for employees seeking to change their jobs.

The pressure of resigning or losing your job in Germany is even more stressful when it’s abroad. Resigning, being made redundant, or switching jobs can mean that you need to know your rights and duties about what to do when you are losing or changing job in Germany to make the process easier. This guide will give you step-by-step information on notice periods, resignation procedures, unemployment benefits, and residence permit conditions, so you can handle every situation confidently. Critical note: This handbook is only relevant to employees and not freelancers.

What to do when you quit while losing or changing job in Germany?

   1. Finalise Your Notice Period

• Your contract of employment has a notice period (Kündigungsfrist). If you wish to resign, you must work until the end of the notice period. The notice period begins when your employer receives your letter of resignation. Notice periods in certain types of jobs can be lengthy – three months is typical. If you wish to resign sooner, you can negotiate a shorter notice period with your employer.
  

   2. Resignation Letter

• To resign, you must submit a resignation letter (Kündigungsschreiben). The notice period only starts when your employer has received this letter. Keep in mind that your employer cannot compel you to resign, so never submit a resignation letter unless you have done so yourself.

   3. Consult with a Doctor before resigning

• If the justification for resignation is mental conditions, such as burnout, depression, or stress, obtain a note from your physician. The note will serve as evidence that you had valid reasons for resignation. Without a doctor’s note, it will be difficult to demonstrate that you resigned for a valid reason. You may also risk losing three months’ unemployment compensation for resigning without cause.

What to do when you get fired or Laid Off before losing or changing job in Germany?

 1. First, know the difference

• • Laid off: This happens when your employer no longer needs your services because of financial issues or reduced workload.
  • Fired: This occurs when your employer is not satisfied with your performance. In Germany, dismissal is only allowed for a valid reason, except for the probation period. Employers are required to give written warnings before dismissing an employee, unless the reason is extremely serious. 

 2. Challenge with a Kündigungsschutzklage

If you are fired after your probation period and believe the dismissal is not justified, you have three weeks to challenge it by filing a Kündigungsschutzklage. Get some legal assistance for this process when you cannot determine on what to do when you are losing or changing job in Germany.

 3. Completing Your Notice Period before leaving the job

Even if you are dismissed, you are allowed to work until the end of your notice period and are paid during this time. This is the period in which your employer can require you to work or send you on garden leave. Incomplete holiday time may also be included as part of your notice period. Some employees will have no notice period for dismissal if they have been at fault through any misconduct.

 4. Negotiating Severance Pay

You can claim severance pay, referred to as Abfindung, when you are being made to be laid off. Typically, you have to sign a termination agreement (Abwicklungsvertrag) for you to receive severance pay. The figure is typically negotiated by taking 0.5 times your gross monthly salary for each year of service. Therefore, five years of service would entitle you to 2.5 months’ worth of severance pay. A union representative or a labour attorney can negotiate for you for better severance.

Sure, too much severance pay could make you ineligible for unemployment and kick you out of the system for three months. Sometimes, it is best to refuse severance pay and file for unemployment instead. If you are unsure about what to do when you are losing or changing your job in Germany, consult with an attorney.

 5. Don’t sign an Aufhebungsvertrag without knowing this

Your employer may offer you a termination agreement (Aufhebungsvertrag), which is a contract in which you agree to leave the company. Be very cautious about this since it is not always in your best interest.

a) Disadvantages of signing an Aufhebungsvertrag:

• • • • You waive your dismissal protection (Kündigungsschutz) and your right to sue your employer.
      • You may forfeit up to three months of unemployment benefits.

b) Advantages:

• • • • You can negotiate better severance pay.
      • You may quit work early before the normal notice period. This is especially useful if you have a new job lined up.

What you must know before quitting your job?

  1. Become an Unemployed Job Seeker

• When you know that you will become unemployed and do not know what to do when you are losing or changing job in Germany, you should register as a job seeker with the Agentur für Arbeit. This must be done three months before the day you lose your job or within three days of finding out that you will become unemployed. If you don’t register before, you might reduce the amount of your unemployment payments.
  

  2. Report to the Ausländerbehörde

• If you have a residence permit, you must report any change or unemployment to the Ausländerbehörde within two weeks. Permanent residents are an exception to this requirement.

  3. Register yourself as Unemployed

• You must register yourself as unemployed at the Agentur für Arbeit to be eligible for unemployment benefits. You should do this during the last three months of your job.

  4. Inform Your Health Insurance Provider when you lose your job

• Even during unemployment, the health insurance will persist to be active, maybe at a higher cost. A private insurance coverage will require changing your coverage to public if you want to receive unemployment benefits.

 5. Obtain a Letter of Reference from your employer

• A reference letter (Arbeitszeugnis) is a record of your work experience and performance. It may prove to be helpful in future job hunting. Ask for it in your resignation letter. Employers are under a legal requirement to provide it when asked for.

There are two types of references:

• Simple reference: Includes the duration of your employment and job description.
• Qualified reference: Includes an evaluation of your performance and the reason for leaving.

  6. Collect Other Essential Documents Before Quitting

Make sure you get the following documents:

• • • • Salary tax statement (Lohnsteuerbescheinigung)
      • Last pay slip (Gehaltsabrechnung)
      • Employment certificate (Arbeitsbescheinigung)
      • Vacation certificate (Urlaubsbescheinigung)

These documents are necessary to receive unemployment benefits and determine your work history when you cannot decide what to do when you are losing or changing job in Germany.

When you’re not working and cannot decide what to do when you are losing or changing your job in Germany?

  1. Ask about training opportunities

If you get unemployment benefits, you are allowed to attend free professional training, coaching, or language courses from the Agentur für Arbeit. Ask about these when you cannot determine what to do when you are losing or changing job in Germany.

  2. Find new work after you become unemployed

You can get a new job or even start your own private business. Unterstützungsberechtigkeit may offer further financial support or entrepreneurial training support (Gründungszuschuss). According to your residence, you can decide on what to do when you are losing or changing job in Germany.

  3. File a Tax Declaration

At year’s end, file a tax declaration (Steuererklärung). Job application costs are tax-exempt. Filing a tax declaration is a compulsion by law if you get unemployment benefits.

  4. Apply for Pension Refund

If you wish to leave Germany permanently, you can claim a refund of your pension contributions. Employees pay 9.3% of their salary to pension insurance, which may be refunded under certain circumstances.

Requirements according to your residence permit

Always inform the Ausländerbehörde before you decide on what to do when you are losing or changing job in Germany. Depending on the type of residence permit you have, different rules may apply. For example:

1. 1. Blue Card holders: After one year of employment, you are allowed to change jobs without any restrictions on salary.
   2. Opportunity card holders: You can work 20 hours per week, but full-time employment requires a different residence permit.
   3. Job seeker visa holders: You may need another residence permit before starting a new job.

Your family’s residence permits may also be affected if your status changes. Always consult the Ausländerbehörde for guidance about what to do when you are losing or changing job in Germany.

It is very important to know what to do when you are losing or changing job in Germany. Quitting, getting laid off, or changing jobs are all processes that require guidelines to ensure that everything goes smoothly and your rights are protected.

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