Errors in a notice of mass layoffs can have serious consequences. However, the Federal Labor Court (BAG) has now clarified that not every inaccurate statement automatically renders the terminations invalid. The decisive factor is whether the error prevents the Employment Agency from preparing for the wave of layoffs.

What is a notice of mass layoffs?

If a company plans to carry out a large number of terminations within a short period of time, it must file a notice of mass layoffs with the Employment Agency in accordance with the provisions of Section 17 of the Unfair Dismissal Protection Act. The works council must generally be informed and consulted beforehand.

The procedure is intended to enable the employment agency to prepare early for a large influx of new job seekers. For example, it should be able to prepare job placement measures and assess how the impact of the layoffs on the labor market can be mitigated. The notification is therefore not merely a formality.

Business Closure Following Bankruptcy

The case decided by the Federal Labor Court (BAG) involved an insolvent key manufacturer and machine builder. The insolvency administrator planned to close the business and terminate the remaining employment contracts.

After informing the works council and reaching a reconciliation of interests with it, he filed the notice of mass layoffs with the Employment Agency. In the notice, he stated his intention to issue 34 notices of termination. In fact, however, only 31 or 32 employees were ultimately laid off.

A machine setter who had been laid off therefore considered his termination to be invalid. In his view, the information regarding the number of affected employees was contradictory or incorrect.

Federal Labor Court: Minor Error Was Harmless

The Federal Labor Court (BAG) dismissed the complaint. The termination had effectively ended the employment relationship, even though the number stated in the notice did not objectively correspond to the terminations that were actually issued later (BAG, judgment of June 25, 2026, Case No.: 6 AZR 7/26).

The court considered the purpose of the notification procedure to be decisive. The fact that the number of employees was slightly overstated did not prevent the Employment Agency from preparing appropriate placement and labor market policy measures. Whether 34 or merely 31 or 32 layoffs were to be expected made no material difference to the agency’s preparations. The notice therefore remained valid.

No Free Pass for Misleading Ads

The ruling does not mean that employers will be allowed to review the information in the notice of mass layoffs less carefully in the future. The nature and impact of the specific error are always the deciding factors.

If the notice is not provided at all or is filed at the wrong time, the terminations in question may still be invalid. Errors that make it difficult for the Employment Agency to prepare properly are also likely to be assessed differently. Employers should therefore continue to carefully document the consultation process, the statutory deadlines, and all relevant information. You can find additional articles on termination and workforce reductions in our Labor Law section.

More practical relevance, but no complete certainty

The ruling provides some relief in cases of minor deviations: A minor error that does not undermine the purpose of the procedure does not automatically render all terminations invalid. However, where exactly the line is drawn between a harmless error and a significant one remains dependent on the individual case. Therefore, special legal diligence is still required in the case of major workforce reductions.