The Direktionsrecht (also Weisungsrecht, the employer's right to give instructions) lets the employer specify work duties that the employment contract describes only in general terms. Under § 106 GewO the employer may set the content, place, and time of work, as well as conduct in the workplace, at fair discretion (billiges Ermessen). The right is not unlimited: contract, works agreement, collective agreement, and statute all set boundaries.
At a glance
- The legal basis is § 106 GewO (performance set at fair discretion)
- It covers the content, place, and time of work, plus conduct in the workplace
- Limits are the contract, works agreement (Betriebsvereinbarung), collective agreement (Tarifvertrag), statute, and fair discretion
- The more precisely role and location are fixed in the contract, the narrower the Direktionsrecht
- The employer must have regard to an employee's disability
- Where instructions are not enough, a transfer clause (Versetzungsvorbehalt) or a Änderungskündigung is needed
Direktionsrecht, Versetzungsvorbehalt, and Änderungskündigung
- Instruction and transfer (Versetzung): a decision within the contract's scope, with no change to the contract
- Versetzungsvorbehalt: a contract clause that widens the scope of the Direktionsrecht and is subject to standard-terms review
- Änderungskündigung: required when the intended change goes beyond the contract's scope (§ 2 KSchG)
- Co-determination: transfers can require the works council's consent (§ 99 BetrVG)
FAQ
Must an employee accept a transfer to another location?
Only if the contract fixes no specific place of work or contains a Versetzungsvorbehalt, and the instruction meets fair discretion. Where a specific location is agreed, going beyond it needs either agreement or a Änderungskündigung.
Can the employer order or end home office unilaterally?
Place of work is generally part of the Direktionsrecht, but home office concerns the employee's own home. Without a contractual basis the employer can neither impose home office unilaterally nor simply revoke an agreed home-office arrangement. Contract and fair discretion govern.
What does billiges Ermessen mean?
The employer must weigh the essential circumstances and give appropriate consideration to both sides' interests (§ 106 GewO). An instruction that fails this balancing is unfair (unbillig) and, under case law, does not bind the employee.
Can the employer change working hours by instruction?
The timing and distribution of working hours fall under the Direktionsrecht, limited by the contract, the Working Hours Act (ArbZG), and works council co-determination (§ 87 BetrVG). The agreed number of hours cannot be changed unilaterally.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
