Employers headquartered outside Germany employ staff in Germany in numerous areas, such as sales, local technical support, and IT, who often work from home due to a lack of their own domestic premises. The relevant law regarding the protection against dismissal of these employees is – provided that the employment relationship is subject to German law – the Protection Against Dismissal Act (KSchG). Outside the scope of the KSchG (and regardless of regulations on special protection against dismissal), employees do not generally enjoy comprehensive protection against dismissal. According to Section 23 (1) KSchG, this protection against dismissal generally only applies in companies that regularly employ more than ten full-time employees, with part-time employees being taken into account on a pro rata basis. The legal requirements in Germany must be met, which is why, for example, the number of employees working abroad is irrelevant.
In practice, it is often overlooked that the existence of a "company" within the meaning of the KSchG depends on a number of criteria that must be cumulatively fulfilled. As a result, the assessment of individual cases may lead to the KSchG not applying despite a foreign employer having dozens of employees in Germany, or to it applying from the eleventh employee onwards despite the employer not having its own premises in Germany.
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