Leitende Angestellte (senior executives) are employees with genuine employer-like functions, such as their own authority to hire and dismiss, statutory power of representation (Prokura), or significant entrepreneurial tasks with real discretion (§ 5 (3) BetrVG). Special rules apply: they are not represented by the works council, the Working Hours Act does not apply, and their protection against dismissal is eased. A high salary or a ‘head of’ job title alone does not make someone a senior executive.
Leitende Angestellte (senior executives) are employees with an employer-like position: they make entrepreneurial decisions or hold real authority over staff. Because of this special position, several rules apply to them that differ from ordinary employment law.
At a glance
- The status follows from § 5 (3) BetrVG and turns on three categories, not on title or pay
- Not represented by the works council; the executives' committee (Sprecherausschuss) is responsible
- Not bound by the Working Hours Act (§ 18 (1) no. 1 ArbZG)
- No genuine job protection on dismissal, but in effect severance protection (§ 14 (2) KSchG)
- The classification is construed narrowly and measured against the actual authority
The three categories under § 5 (3) BetrVG
- Staff authority: entitled to hire and dismiss employees independently, for a significant part of the workforce and not merely on paper
- Prokura or general power of representation: with authority that is also significant vis-à-vis the employer, not just a title
- Entrepreneurial leadership tasks: regularly performing tasks important for the company's existence and development that require special knowledge, where the person essentially decides freely or significantly influences decisions
FAQ
Is a high salary or a "head of" title enough?
No. What matters is the actual authority. A "head of" without real hiring-and-firing power or entrepreneurial discretion is usually not a senior executive.
Why is this called severance protection rather than dismissal protection?
The Dismissal Protection Act does apply, but § 14 (2) KSchG lets the employer ask the court, in an unfair-dismissal case, to dissolve the employment against a severance without having to give reasons. In practice the law does not protect the job but secures a severance (§§ 9, 10 KSchG).
Who represents their interests?
The Sprecherausschuss, not the works council. In works council elections, senior executives are not part of the eligible workforce.
How do you draw the line in practice?
Through an honest look at the actual role: whom the person may independently hire or dismiss, what power of representation is registered in the commercial register, and which entrepreneurial decisions they really make. Where there is doubt, the person is presumed not to be a senior executive.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
