Imprisonment During Employment: When May Employers in Germany Terminate?

May an employee be terminated because they must begin serving a multi-year prison sentence? And what applies if there is a prospect of early release or of being permitted to work as a day-release inmate? The Stuttgart Labor Court recently addressed these questions in a current decision (judgment dated January 15, 2026 – 28 Ca 887/25). The decision illustrates that a lengthy term of imprisonment can have significant consequences for the employment relationship. At the same time, it provides important guidance on an employer’s duty to cooperate.

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