When a Manager's Remit Shrinks by Two-Thirds, a Court Says That Is Not a Routine Transfer
12.06.2026 - 13:45:13 | boerse-global.de
Even if the pay stays the same, quietly stripping a department head of most of his or her team and switching their focus to sales calls can be illegal. Germany's Regional Labor Court of Lower Saxony (LAG Niedersachsen) made that clear on 12 January 2026 in a case that sets a sharp boundary for unilateral transfers of executives.
The ruling (case reference 4 SLa 454/25) concerned an Abteilungsleiter who was told his future responsibilities would cover just 20 employees instead of 77. His portfolio of four teams was replaced by an acquisition-driven role. The court stopped the move.
What matters, the judges said, is not the job title or the salary level but the actual scope of duties and decision-making authority. Cutting personnel responsibility by more than two-thirds strikes so deeply at the manager's position that only a formal change dismissal (Änderungskündigung) can lawfully achieve it. And that step requires a social justification under German dismissal protection law.
Red Flags That Should Make Executives Pause
Employment specialists Christoph Abeln and Nils Schmidt reviewed common traps for managers in mid-June 2026. Their warning: some transfers are simply disguised dismissals.
One telltale sign is the installation of a dual leadership structure. In practice that often amounts to a gradual disempowerment. Equally critical is a move to a pure project-leadership level where the manager loses authority over personnel and budgets — and with it the protection of acquired rights.
Another risk flagged by the lawyers: being appointed managing director. Under German labor law, that promotion typically terminates the general protection against dismissal (Kündigungsschutz). And for anyone over 55 who is sent abroad while their former position gets filled back home, the experts insist on a written return clause.
When Agreement Becomes the Only Option
Employers who cannot enforce a transfer unilaterally often turn to mutual termination agreements (Aufhebungsverträge). The Federal Labor Court (BAG) already clarified on 24 February 2022 (case 6 AZR 333/21) that such a contract is not invalid simply because the employer demands an immediate decision or threatens dismissal. Only extreme cases of unfair negotiation — such as outright coercion — breach the standard.
New Paperwork Rules and Stronger Reference Rights
Since the start of 2025, some formal thresholds have eased. Employment contracts can now be concluded legally via email in text form. Digital work references with a qualified electronic signature are also permissible.
A separate BAG ruling from 7 May 2026 (case 8 AZB 25/25) strengthens the employee's hand: if an employer commits in a court settlement to issue a reference letter based on the employee's draft, that obligation is enforceable. If the company deviates without a compelling reason, the worker can demand correct performance through enforcement proceedings.
