Table 3 Main periods in the historical development of job security regulations in Germany
| Â | Main institutional developments and legal changes |
|---|---|
Until 1914 | Liberal regime: virtually no restrictions on the freedom to dismiss |
1920 | Emergence of job security regulation in Works Councils Act: Employees can appeal to works council against notice, if it is based on invalid reasons (e. g. not related to personal conduct or situation of the enterprise, based on religion, political affiliation, etc.). If the employer rejects re-employment, worker is entitled to compensation. Severance pay depended years of tenure, maximum half an annual wage |
1951 | Restoration/expansion in Dismissal Protection Act: dismissal in exceptional cases only, individual right to appeal applicable for companies with six or more employees, social protection criteria, right to re-employment, severance pay up to one annual wage |
1951–1970s | Stability in the context of strong economic growth, full employment and labor shortage. Incremental emergence of agency work (regulated in Manpower). Act of 1973. The 1972 Works Constitution Act does not lead to significant changes |
1980s | Marginal reform in Employment Promotion Act (1985): fixed-term contracts without valid reasons up to 18Â months, agency work assignments up to six months |