Lawyer fees in Germany are not freely negotiated — they are governed by the federal lawyer-fee statute, the Rechtsanwaltsvergütungsgesetz (RVG). The fee is calculated from the Gegenstandswert (value in dispute), not from hours worked. This is the same system that legal-protection insurers apply when they reimburse your lawyer.
How the fee is calculated
The RVG sets a base fee (Gebührensatz) for every Gegenstandswert. For employment litigation, the most common fees that accrue in a Kündigungsschutzklage are:
- Verfahrensgebühr (1.3) — accrues when the lawyer takes on the matter.
- Terminsgebühr (1.2) — accrues when a court hearing takes place (Gütetermin, Kammertermin).
- Einigungsgebühr (1.0–1.5) — accrues if the case ends with a settlement (Vergleich).
Each fee is the base RVG rate × the multiplier shown above. The base rate scales with the Gegenstandswert in defined steps under the RVG fee table. To this you add postage flat fee (€20), reproduction costs, and 19% VAT.
The two most common case values
- Dismissal challenge (Kündigungsschutzklage): 3 × gross monthly salary (§ 42(2) GKG).
- Wage / bonus claim: the amount claimed (§ 3 ZPO).
- Reference-letter correction: 1 × gross monthly salary (case law).
- Settlement adds value: when the settlement covers additional items (e.g. waiver of vacation, severance), the Gegenstandswert for the Einigungsgebühr may be raised — increasing the final fee.
Worked example: €5,000 / month, settled at Gütetermin
| Item | Multiplier | Net amount |
|---|---|---|
| Verfahrensgebühr | 1.3 | ~€1,054 |
| Terminsgebühr (Gütetermin) | 1.2 | ~€972 |
| Einigungsgebühr (settlement) | 1.0 | ~€810 |
| Auslagen + postage | — | ~€20 |
| Subtotal net | — | ~€2,856 |
| VAT 19% | — | ~€543 |
| Total gross | — | ~€3,400 |
Without the settlement, the total drops by the Einigungsgebühr. Without a court hearing at all (matter resolves out of court), the Terminsgebühr does not accrue.
Who pays
The key rule for first-instance labor court matters is § 12a Arbeitsgerichtsgesetz (ArbGG): each side bears its own lawyer fees regardless of who wins. So even if you fully prevail on the merits of a wrongful dismissal, the employer is not required to reimburse your RVG fee from the first instance. Only at the appeal level (Landesarbeitsgericht) and federal level does the normal loser-pays rule of § 91 ZPO apply.
Court filing fees follow the rules of the Gerichtskostengesetz (GKG). The employee does not need to advance the court fee — the court bills it after the case ends, and almost always to the employer. If the case settles, the court fee is reduced or waived entirely under No. 8210 GKG-KV.
Legal-protection insurance (Rechtsschutzversicherung)
If you have Rechtsschutzversicherung with an employment-law module (Arbeitsrechtsschutz), the insurer pays your RVG fee in full, minus the agreed deductible (typically €150–€300). Three pitfalls to watch:
- Waiting period (Wartezeit). Most policies impose a 3-month waiting period for employment cases. A dismissal in the first 3 months of the policy is usually not covered.
- Vorvertraglichkeit. If the underlying conflict began before the policy was taken out, the insurer will decline.
- Scope. Some packages exclude employment law or limit it to certain types of dispute. Check the policy schedule.
We deal with the insurer directly: submitting the Deckungsanfrage, defending it if the insurer initially declines, and billing at the end. You only ever pay the deductible.
What if I don’t have insurance?
You have several options. Beratungshilfe covers initial advice for low-income individuals through a state voucher (€15 self-contribution). Prozesskostenhilfe (PKH) under §§ 114 ff. ZPO covers litigation costs for those with limited means (income threshold roughly €600/month net after deductions for full coverage; up to ~€1,600 with installments). For straightforward matters we can also agree a Vergütungsvereinbarung (fixed fee or hourly rate). And in dismissal settlements, the lawyer’s fee is often effectively paid from the severance — which the employer would not have paid without the lawyer in the picture.
The free initial enquiry
Sending us a one-paragraph description of your case to find out whether it is worth pursuing — and what the rough fee and timeline would look like — is free. We come back the same business day with a written assessment. Only if you then instruct us to act does any RVG fee accrue.