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Job Cuts at Postbank – How You Can Defend Yourself Against Redundancy Dismissals

"Job cuts are inevitable," says Claudio de Sanctis, Head of Private Clients at Deutsche Bank. Specifically, this refers to the closure of up to 250 of the current 550 Postbank branches, a subsidiary of Deutsche Bank. The closures are planned to be completed by mid-2026.

Postbank Probleme
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It has been found that three-quarters of Postbank customers conduct their banking online and rarely, if ever, visit a branch.

After Postbank customers struggled with the consequences of severe IT issues in recent months, it is now the employees who are affected. It is expected that hundreds, if not thousands, of employees will lose their jobs due to redundancy dismissals.

Are you employed at Postbank and worried about losing your job? Or have you already been affected?

We provide information on how to respond if you receive a redundancy dismissal and how to defend yourself against it.

Overview:

  1. What Is a Redundancy Dismissal?
  2. The Requirements for a Redundancy Dismissal
  3. The Social Selection Process and Its Criteria
  4. Modification Dismissal as an Alternative
  5. The Severance Offer
  6. Received a Redundancy Dismissal – What to Do Next
  7. The Unfair Dismissal Claim
  8. Conclusion
  9. FAQ: Frequently Asked Questions

1. What Is a Redundancy Dismissal?

According to § 1 of the Employment Protection Act (KSchG), a redundancy dismissal is issued when urgent internal or external reasons necessitate job cuts, making the continuation of the employment relationship impossible. In such cases, the termination of the employment relationship is based on a business decision.

Internal reasons for a redundancy dismissal may include:

  • Restructuring and rationalization measures
  • Business closures or insolvency

External reasons may include:

  • Decline in revenue and lack of orders
  • Sales difficulties

Job Cuts at Postbank

The planned rationalization measures 

at Postbank could therefore serve as a basis for redundancy dismissals.

2. The Requirements for a Redundancy Dismissal

Even if an internal or external reason can be proven, additional conditions must be met for your employment contract as a Postbank employee to be terminated due to redundancy.

These conditions include:

  • No alternative employment opportunities are available
  • The interests of the employer and employee have been sufficiently balanced
  • A proper social selection process has been conducted
  • There is a clear urgency for the dismissal
  • The general requirements for termination have been met (written form requirement, compliance with the notice period, consultation with the works council).

3. The Social Selection Process and Its Criteria

A redundancy dismissal is only valid if a proper social selection process has been conducted.

This means that Postbank, as the employer, must compare all employees with comparable roles in terms of their need for social protection.

The social selection process is carried out in three steps:

Horizontal Comparison

In the first step, all employees who, according to their employment contracts or job descriptions, have similar areas of responsibility are identified. This includes all employees working at the same organizational level who could theoretically "replace" each other. For example, if you are a customer service representative at Postbank, other customer service representatives are included in the comparison, as they belong to the same organizational level.

Ranking of Social Protection Needs

You and your colleagues are then evaluated based on criteria related to social protection needs. These criteria include age, length of employment with the company, maintenance obligations towards spouses and children, and disability status.

Exceptions to the Social Selection Process

Postbank may only exclude employees from the required social selection process if they are considered key performers due to their knowledge, skills, and performance, or if retaining them is deemed necessary to maintain a balanced workforce structure in what is referred to as a legitimate business interest.

In principle, all criteria for social protection needs are considered equally important.

However, labor courts grant employers a certain degree of discretion. In practice, a points-based system is often used, developed in collaboration with the works council. While all criteria must be adequately considered, it is possible, for example, that higher points are assigned to employees with maintenance obligations toward spouses than toward children.

Employees with the lowest point totals are selected for dismissal.

This social selection process will also be applied in the case of Postbank job cuts. However, in many cases, errors occur during the process. Therefore, it is advisable to consult a specialist employment law attorney to assess the validity of the redundancy dismissal.

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4. Modification Dismissal as an Alternative

Employers are required to consider alternative positions at the same hierarchical level before issuing a redundancy dismissal.

If vacant positions are available, Postbank must offer you other employment opportunities. These may be assigned under the employer's right to direct work or proposed through a modification dismissal.

The employer may also offer positions at a "higher hierarchical level," but they are not obligated to terminate other employees to free up positions at the same level.

For positions at a lower hierarchical level, you as the employee must have the choice to decide whether to accept the offer from Postbank.

Have you received a modification dismissal from Postbank?

Have it reviewed by an emoployment law attorney to assess its legality and discuss your options.

5. The Severance Offer

To avoid unfair dismissal claims, employers often make severance offers. This is particularly common during extensive rationalization measures, such as those currently taking place at Postbank.

However, there is no legal obligation to offer severance payments in the event of job loss. The amount of severance is determined not only by the likelihood of success in an unfair dismissal claim but also by the employer's willingness and financial ability to pay.

If Postbank makes you a severance offer, as an employee, there is no need to respond immediately. Request time to consider the offer and discuss your options with an employment law specialist.

6. Received a Redundancy Dismissal – What to Do Next

First and foremost: Stay calm and seek professional advice! Since you must respond within the 3-week filing deadline—unless exceptional circumstances apply—please contact us immediately.

If we advise you to file a claim against Postbank, it must be submitted within the 3-week deadline; otherwise, the redundancy dismissal becomes legally effective. Important: This applies even if the dismissal is later proven to be unfounded.

Keep the registered letter containing the dismissal as proof of the date.

Even if Postbank attempts to resolve the issues quickly and pressures you to act, never sign the dismissal immediately. Request time to consider your options. You are, of course, entitled to inquire about alternative positions within the company. In principle, however, Postbank is required to have assessed the availability of alternative employment opportunities beforehand and either offered them to you, assigned them under their right to direct work, or proposed them through a modification dismissal.

A Recommendation for a Potential Unfair Dismissal Claim:

Strengthen your negotiating position by signaling to Postbank, your current employer, in writing that you are willing to participate in further training.

7. The Unfair Dismissal Claim

If you file an unfair dismissal claim with the labor court within the 3-week deadline, the court will review the redundancy dismissal against the legal requirements.

If there is no urgent business need, if Postbank has conducted the social selection process incorrectly, or if the works council was not adequately consulted, there is a chance the labor court will declare the dismissal invalid.

Each case must be assessed individually. Be prepared for the likelihood that Postbank may no longer be interested in continuing the employment relationship and will, if necessary, seek a way to terminate it. As Claudio de Sanctis commented on the challenges at Postbank: “Job cuts are inevitable.”

Your employment law attorney will thoroughly discuss the risks and opportunities of an unfair dismissal claim against Postbank with you.

8. Conclusion

As a Postbank employee, you may be affected by the significant job cuts. Please note the following:

  • A redundancy dismissal is always based on a business decision
  • It is subject to legal requirements
  • A key criterion for a valid redundancy dismissal is the proper execution of the social selection process
  • Employees in comparable roles are evaluated for social protection needs based on age, length of service, maintenance obligations, and disability status
  • A modification dismissal could be an alternative to job cuts
  • To avoid unfair dismissal claims, Postbank may offer severance payments
  • An unfair dismissal claim must be filed within the 3-week deadline
  • Consulting a specialist employment law attorney is highly recommended. Contact us so we can support you during this challenging time.

9. FAQ: Frequently Asked Questions

What Is a Redundancy Dismissal?

A redundancy dismissal is issued in accordance with § 1 of the Employment Protection Act when urgent internal or external reasons necessitate job cuts, making the continuation of the employment relationship impossible.

What Are the Requirements for a Redundancy Dismissal?

The requirements include the absence of alternative employment opportunities, a balance of interests between employer and employee, a proper social selection process, Urgency and Compliance with general termination conditions (e.g., written form, notice period, consultation with the works council).

What Is the Social Selection Process and What Are the Criteria?

The social selection process is crucial for the validity of a redundancy dismissal. It considers the following criteria: Age, Length of service with the company, Maintenance obligations and Disability status.
A proper and error-free social selection process is a prerequisite for a valid redundancy dismissal.

Is a Modification Dismissal an Alternative to Job Cuts?

Yes, before issuing a redundancy dismissal, Postbank as the employer is required to consider alternative positions at the same hierarchical level. A modification dismissal can be an option to adjust job roles.

Are Severance Offers Available in Cases of Redundancy Dismissals?

Employers sometimes offer severance payments to avoid unfair dismissal claims. However, there is no legal obligation for Postbank to provide severance payments.

How Does an Unfair Dismissal Claim Work?

An unfair dismissal claim must be filed within the 3-week deadline. The court will review Postbank's redundancy dismissal against legal requirements. A specialist employment law attorney will explain the risks and opportunities of filing a claim.

What Should You Do if You Are Affected by the Issues at Postbank and Have Received a Redundancy Dismissal?

Do not act hastily. Instead, seek advice from a specialist employment law attorney.

Picture Credits: © MarsBars | Canva.com

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