Germany: Legal costs remain for employees winning dismissal lawsuits

In German labor courts, employees who successfully challenge a dismissal may still be responsible for their own legal fees. Under Section 12a of the Labor Court Act, the opposing party is generally not required to reimburse an employee's attorney costs in first-instance proceedings, even if the employee wins the case.

While the losing party typically bears the court costs, the employee's own legal expenses remain a personal burden unless covered by legal expenses insurance. It is noted that legal protection insurance with employment law coverage can mitigate these costs.

Furthermore, employees must adhere to a strict three-week deadline to file a lawsuit following the receipt of a written dismissal notice under the Protection Against Dismissal Act. Delays caused by pending responses from insurance companies or discussions with employers do not extend this legal timeframe.