Court upholds firing of director over unauthorised salary hikes and oversight failures
A managing director’s dismissal over unauthorised salary increases has been upheld by the Higher Regional Court of Frankfurt am Main. The ruling, issued on 20 November 2025, confirmed that the termination was lawful due to serious breaches of oversight duties. The defendant’s appeal against earlier royalty awards was also rejected in the same decision.
The case centred on the plaintiff’s failure to properly monitor and prevent unjustified salary reclassifications and allowance payments. These irregularities, particularly involving works council members, were deemed severe enough to justify termination without notice. The court found that the dismissal in early March 2022 was procedurally correct, with the required two-week notice period observed.
The Higher Regional Court’s decision reinforces the legal grounds for the managing director’s dismissal. While the ruling is not yet final, it establishes that the termination followed proper procedure and was justified by the oversight failures. Both sides may still pursue further appeals, leaving the case open for potential review by Germany’s highest civil court.
