Termination of employment - what options does the employer have?
The termination of an employment relationship is one of the most legally sensitive decisions in a company. Employers must not only observe labour law requirements, but also avoid liability risks. At the same time, the use of AI in day-to-day business is becoming increasingly important - especially in the area of HR.
However, even if AI can support processes, the responsibility for cancellation decisions always remains with the employer.
Classic forms of termination
Employers have various legal options for terminating an employment relationship. Which option is permissible and sensible depends on the individual case.
Ordinary cancellation
Ordinary dismissal terminates the employment relationship in compliance with the applicable notice period. In many cases, this requires a socially justified reason for termination, such as
- operational reasons
- personal reasons
- Behavioural reasons
Extraordinary cancellation
Extraordinary termination or termination without notice can only be considered in exceptional cases. An important reason is required that makes the continuation of the employment relationship unreasonable.
Typical examples are
- serious breaches of duty
- Working time fraud
- Offences committed at the expense of the employer
- persistent refusal to work
As a termination without notice is subject to high legal requirements, a careful examination is essential.
Cancellation agreement
An employment relationship can also be terminated by mutual agreement by means of a cancellation agreement. The employer and employee jointly agree the end of the employment relationship.
Advantages can be in particular
- Flexible termination times
- Avoidance of unfair dismissal proceedings
- amicable settlement of open issues
However, employers must ensure that no unacceptable pressure is exerted.
Each variant has its own requirements and risks.
Use of AI in personnel decisions
More and more companies are using AI tools to support HR decisions - for example in:
- Applicant selection
- Performance evaluations
- Personnel planning
- Preparation of cancellation decisions
Automated tools are also increasingly being used to create employment references. These can speed up processes, but are no substitute for a legal review.
There is a risk that AI-based decisions may be flawed, non-transparent or discriminatory, particularly in connection with dismissals. This becomes particularly problematic if employers rely solely on automated assessments.
Primary liability of the employer
From a legal perspective, decisions made in the employment relationship are attributed to the employer - even if AI systems were involved in the decision-making process.
If companies make termination decisions based on incorrect or discriminatory AI analyses, there may be considerable legal consequences, for example:
- Dismissal protection claims
- Claims for damages
- Allegations of discrimination
- Data protection violations
AI therefore does not release employers from their obligation to review decisions independently and document them in a comprehensible manner.
Exception: Liability of the employee
In certain cases, the employee may also be liable, for example in the case of:
- wilful misconduct
- deliberate manipulation of AI systems
- grossly negligent behaviour
However, the primary responsibility for personnel decisions regularly remains with the employer.
Practical tip for employers
AI can efficiently support HR processes, but should never be the sole basis for terminating an employment relationship.
The following are particularly important:
- Human control of decisions
- Transparent documentation
- Testing for risks of discrimination
- Legal assessment of individual cases
It is advisable to seek labour law advice at an early stage, especially in the case of dismissals.
Conclusion
Employers have various options for terminating an employment relationship in a legally secure manner - from ordinary termination to a cancellation agreement. The increasing use of AI in day-to-day business is changing the decision-making processes, but not the legal responsibility.
The responsibility for cancellation decisions always remains with the employer. AI-supported processes should therefore always be carefully monitored and legally scrutinised.
If you have any questions on this or other topics, please contact us - we will be happy to advise you.
To the contact form