The managing director’s contract may also be terminated orally

According to the Schleswig-Holstein Regional Labour Court (LAG Schleswig-Holstein), unless otherwise provided by contract, the managing director’s employment contract may also be terminated orally.

The court dismissed the claim brought by a former managing director seeking payment of further remuneration. According to the judgment, the employment relationship no longer existed at that time.

Although no written termination agreement was available in the case file, it was undisputed that the defendant employer had deregistered the plaintiff, the former managing director, with the social security authorities, and that the latter had accepted this without objection. In a family law dispute, the former managing director also stated that he had taken up employment with another company.

On this basis, the court held that it had to be assumed that the managing director’s employment contract had been terminated by mutual agreement. The employment contract required written form only in relation to unilateral notices of termination; therefore, in the present circumstances, the contract could validly be terminated without written form.