Costs & Fees

Legal fees for German employment cases: RVG rates, the § 12a ArbGG rule (each side pays its own lawyer in the first instance), and Rechtsschutzversicherung.

Worried about legal fees? You should be — but probably less than you think. German labor-court costs are unusual: in the first instance each side carries its own lawyer fee no matter who wins, the court does not require an advance payment from the employee, and most legal-protection insurance covers the lot.


No advance
Court fee for the employee at filing

§ 12a
ArbGG: each side bears own fees in 1st instance

50%
Of last salary as minimum non-compete pay

How lawyer fees work (RVG)

Lawyer fees in Germany are governed by the Rechtsanwaltsvergütungsgesetz (RVG). The fee is calculated from the Gegenstandswert (value in dispute), not from hours worked. You can alternatively agree a flat fee or hourly rate (Vergütungsvereinbarung).

Two common case values

Type of dispute Gegenstandswert Statutory basis
Kündigungsschutzklage 3 × gross monthly salary § 42(2) GKG
Wage / bonus claim Amount claimed § 3 ZPO
Reference-letter claim 1 × gross monthly salary case law
Aufhebungsvertrag negotiation 3 × gross monthly salary case-law analogue

Worked example

Monthly gross salary €5,000, dismissal challenge that settles at the Gütetermin:

  • Gegenstandswert: €15,000
  • Court fee: reduced to €0 because the case settles (No. 8210 GKG-KV). If the case ended by judgment instead, the court fee would be roughly €855 and would typically be allocated to the losing party.
  • Your lawyer fee (per RVG): roughly €1,800–€2,100 net + 19% VAT
  • Total out-of-pocket for you (no insurance, settled case): ~€2,200–€2,500 gross

Who pays what — the unusual labor-court rule

Practical consequences for you as an employee:

  • Even if your challenge fully succeeds, the employer is not required to reimburse your fee from the first instance.
  • If you lose, you do not pay the employer’s fee from the first instance either.
  • This rule pushes both sides toward settlement at the Gütetermin.

Court filing fees in labor court: the court does not require an advance payment from the employee at filing. The fee is set at the end of the proceedings on the basis of the Gegenstandswert (court costs schedule of the GKG / KV). If the case settles, the court fee is reduced to zero under No. 8210 GKG-KV. If the case ends by judgment, the fee is typically allocated to the losing party (subject to the cost decision of the court).

If you have RSV with an employment-law module, the insurer pays everything — RVG fees, court fees, expert witnesses — minus the agreed deductible (Selbstbeteiligung), typically €150–€300 per case.

We deal with your insurer directly — submitting the Deckungsanfrage, defending it if declined, and billing the insurer at the end. You only ever pay the deductible.

What if I don’t have insurance?


  1. Beratungshilfe

    State-funded voucher for initial advice (€15 self-contribution) for low-income individuals. Apply at your local Amtsgericht.


  2. Prozesskostenhilfe (PKH)

    Court-paid coverage for litigation costs. Net monthly income under ~€600 = full PKH; up to ~€1,600 = PKH with installments.


  3. Vergütungsvereinbarung

    Fixed fee or hourly rate. More transparent than statutory calculation for contract reviews and reference-letter corrections.


  4. Settlement-funded

    In most dismissal cases the lawyer fee comes out of the severance the employer would otherwise not have paid — net cash impact on you is often zero or strongly positive.


Two common misconceptions

Our fee transparency

  • Before any chargeable work, you receive a written cost estimate based on the RVG and your case specifics.
  • If you have legal-protection insurance, we file the cost-coverage request before proceeding.
  • If you don’t, we discuss Vergütungsvereinbarung, Prozesskostenhilfe, or settlement-funded structures.
  • The initial enquiry (same-day reply on whether your case looks promising) is always free.