The chairwoman of the German Startup Association is urging a more flexible approach to employee protection for higher‑earning workers.
In an interview with the “Frankfurter Allgemeine Zeitung” (Tuesday edition), Verena Pausder said that “the costs of mistakes are too high in this country”. She illustrated the point with the example of startup founders hiring a highly qualified person who ultimately does not fit the company. The resulting separation, she explained, can “cost a great deal of money and energy”. Pausder added that one of the main challenges for German startups is that they “cannot breathe properly”.
Pausder does not support a blanket abolition of firing protection. Instead, she proposes a tailored rule for young companies, potentially linked to the number of years since the firm’s founding. “Start‑ups deal with talent that can quickly find a new employer” she noted. Even if a replacement isn’t secured immediately, employees usually can bridge a few months with their previous wages.
In addition, she calls for a clearly defined severance framework that would prevent lengthy litigation over dismissal protection claims-outcomes that, according to her, would otherwise be largely predetermined. Implementing such a rule, she believes, would save both employees and companies significant money and effort, and it would also lighten the workload for the courts.