Schleswig-Holstein Regional Labour Court: Managing Director’s Service Agreement Can Be Terminated Orally

Unless otherwise agreed contractually, the Schleswig-Holstein Regional Labour Court has held that a managing director’s service relationship may also be terminated orally. It dismissed the claim brought by a former managing director who sought continued remuneration. According to the court’s latest judgment, however, the service relationship no longer existed.

There was no written termination agreement; however, the defendant had deregistered the claimant with the competent social security authorities, which the claimant accepted without objection.
In a family law dispute, the claimant also stated that he was employed by another company.

This was sufficient reason for the Schleswig-Holstein Regional Labour Court to assume that the managing director’s service agreement had previously been terminated by mutual consent. The service agreement required written form only for unilateral terminations; therefore, in this case, the termination of the managing director relationship was valid.