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Core Topics 7 min read

Dismissal Due to Illness in Germany: Conditions, Process & BEM

Illness-related dismissal explained: the three BAG conditions (negative health prognosis, operational impact, balancing of interests), the role of BEM, dismissal protection – and how prevention avoids such cases.

Rainer Orthober
Geschäftsführer & Compliance-Experte

TL;DR – Key Takeaways

  • Illness-related dismissal is a sub-type of person-related dismissal and only valid under strict conditions
  • The BAG requires three stages: negative health prognosis, significant operational impact, and a balancing of interests in the employer favour
  • BEM (§167 SGB IX) is not a validity requirement; if it is missing, the employer carries a considerably heavier burden of proof
  • The best protection against such cases is prevention – the psychological risk assessment reduces psychologically caused long-term absences

What is an illness-related dismissal?

An illness-related dismissal is a sub-type of person-related dismissal, valid only under strict conditions: illness alone is not a ground for dismissal. Within the scope of the Dismissal Protection Act (KSchG) the dismissal must be socially justified. That general protection only applies after six months of continuous employment (§ 1 (1) KSchG) and only in establishments that regularly employ more than ten people (§ 23 (1) KSchG).

The three BAG conditions

  • 1. Negative health prognosis: at the time of dismissal, further significant absences must objectively be expected.
  • 2. Significant impairment: the absences must significantly impair operational or economic interests.
  • 3. Balancing of interests: the balance must fall in the employer's favour.

The role of BEM

Before an illness-related dismissal, the employer must generally have offered a company integration management (BEM). Without it, the employer bears the difficult burden of proving that a BEM would not have produced milder means – such as a phased reintegration or an adapted workplace.

Prevention instead of dismissal

Since mental illness causes the longest absences at 28.5 days per case, against an average of 10.5 days across all diagnoses (WIdO, Fehlzeiten-Report 2025, data year 2024, reference: employed AOK members), the most effective approach is to prevent it. The psychological risk assessment under §5 ArbSchG systematically uncovers the stressors behind long-term absences – reducing the cases that ever become a dismissal question. Learn more →

Frequently Asked Questions

When is an illness-related dismissal permitted?

Under BAG case law three conditions must be met: a negative health prognosis (significant future absences expected), a resulting significant impairment of operational or economic interests, and a balancing of interests favouring the employer. A BEM must also have been offered beforehand.

Is a BEM mandatory before an illness-related dismissal?

A BEM is not a formal validity requirement but is decisive in practice: without it, the employer must prove in court that a BEM would not have produced any milder alternative to dismissal – which rarely succeeds.

Can you be dismissed despite long illness?

Long illness alone does not justify dismissal. Only when all three BAG conditions are met and milder means (e.g. an adapted workplace, reintegration) are ruled out can a dismissal be valid. General dismissal protection under the KSchG applies.

Glossary Terms in This Article