After 115 years, it is to be the end of the line in Dresden: on 10 September 2026, GlaxoSmithKline announced the closure of its vaccine plant in the Johannstadt district of Dresden by the summer of 2028. Around 650 employees are affected, while the IG BCE trade union puts the figure at 641 jobs. Production of the influenza vaccines is to be phased out by September 2027 and consolidated in the future in Ste-Foy, Canada. The group cites globally declining demand and overcapacity as the reasons. The works council and trade union have announced resistance, and the Saxon state government and the city of Dresden intend to fight for the site.

I am Martin Reichelt, specialist solicitor for employment law in Dresden. Whether the plant will actually close in the end will be decided in the coming months. What I know from many restructurings: the crucial course for employees is being set now, long before the first dismissal letter arrives in the post. In this article, I explain what rights you have in the event of a plant closure, what mistakes employers typically make, and what concrete steps you should take in the coming weeks.

Plant closure is a change in operations: reconciliation of interests and social plan

The closure of an entire establishment is the classic case of a operational change pursuant to Section 111 of the Works Constitution Act (BetrVG). For you as employees, this has two consequences. Firstly, GSK must negotiate with the works council regarding a reconciliation of interests negotiate: whether, when and how the closure takes place, whether there are alternatives and in what order the dismantling is carried out. Secondly, a Social plan enforceable under section 112 of the Works Constitution Act (BetrVG). It governs the compensation for economic disadvantages, primarily severance payments, allowances for further training and relocation, as well as provisions for older employees. If the parties fail to reach an agreement, a conciliation committee decides.

Important for your assessment: The works council cannot legally prevent a closure. However, it can delay it and make it expensive. Precisely this is the negotiating leverage from which your redundancy payment will be paid in the end. If the employer gives notice before the reconciliation of interests has been seriously attempted, you additionally have a claim to reasonable adjustment under Section 113 of the Works Constitution Act (BetrVG), meaning a court-ordered severance payment in addition to all other claims.

Mass redundancy: This is where the most expensive mistakes happen

With around 650 dismissals, the collective redundancy notification procedure under Section 17 of the Protection Against Dismissal Act (KSchG) is mandatory. GSK must inform the works council in writing, consult with it, and notify the Employment Agency of the dismissals before issuing the notices. That sounds like a formality, but it is the most frequent reason why dismissals fail in large-scale proceedings before the labour court. If the notification is missing, incomplete, or arrives too late, every single dismissal is invalid. In such cases, my first step is to examine the Employment Agency's file before looking at the content of the dismissal.

Operational redundancy dismissal during closure: What the employer must set out

If a business is completely shut down, there is generally an urgent operational requirement within the meaning of Section 1 of the Protection Against Dismissal Act (KSchG). Nevertheless, it is worth checking, as three points are regularly overlooked:

Time: Dismissal due to closure is only permissible once the decision has been definitively made and has taken tangible form. An announcement „by 2028“ is not sufficient for this. Dismissals issued too early are open to challenge.
Continued employment within the company: Dismissal protection is establishment-related, but the examination of vacant positions is company-related. GSK has other sites in Germany. If there are vacancies there that you could work in after reasonable retraining, the employer must offer you these before dismissal, by means of a variation of contract if necessary.
Phased reduction: If production is phased out by September 2027 and wind-down work continues until 2028, not everyone will be made redundant at the same time. The employer must then Social selection based on length of service, age, maintenance obligations and severe disability, to decide who has to leave first. Errors in the social selection process are a classic ground for litigation.

Added to this are the notice periods under § 622 of the German Civil Code (BGB), which can be up to seven months to the end of the month in cases of long-term employment, as well as collective bargaining periods in the chemical industry. Employees with special protection against dismissal, such as severely disabled persons, pregnant women, parents on parental leave and members of the works council, cannot simply be dismissed even in the event of a closure.

Severance pay: What is realistic and what the amount depends on

There is only a statutory entitlement to severance pay in Germany in exceptional cases, for example under Section 1a of the Dismissal Protection Act (KSchG) amounting to half a month's gross salary per year of employment, if the employer offers this in the notice of termination. In practice, severance pay in the event of a plant closure results from the social plan. Common formulas are Length of service × Gross monthly salary × Factor, whereby the factor is between approximately 0.5 and over 1.0 depending on the economic situation and bargaining power. In addition, there are frequently supplements for age, maintenance obligations and severe disabilities as well as a Sprinter or turbo bonus for everyone who waives the right to sue.

In the case of a closure with a long lead time, as in Dresden, a second instrument comes into play: Retention bonuses. The employer needs the workforce until the last day of production and is paying to ensure you do not leave early. Anyone who hastily signs a termination agreement today often gives up this bonus. Whether an offer is good can only be judged by looking at the social plan, notice period, tax and unemployment benefit. I have set out my basic rules on severance pay under Severance pay in labour law In summary.

Mutual termination agreement and voluntary programme: Do not sign immediately

Experience shows that an announcement of closure is soon followed by a voluntary redundancy programme. This can be attractive, but it has two pitfalls. Firstly, in the case of a mutual termination agreement, there is a risk of Blocking period for unemployment benefit of twelve weeks pursuant to Section 159 of the Third Book of the Social Code (SGB III) if the notice period is not observed or if the severance pay lies outside the framework accepted by the Federal Employment Agency. Secondly, by signing you are permanently giving up your employment protection. Ask for time to think, have the figures checked and pay attention to your reference grade, remaining holiday, bonus claims and company pension scheme. What you should do in the event of a Cancellation agreement what you should pay attention to in detail, I will explain on a separate page.

Transition company: Bridge with a price

With closures of this scale, a transition company is frequently established. By means of a tripartite agreement, you move into a redeployment company for up to twelve months, receive transition short-time working allowance plus a top-up, and training opportunities. The price: your employment relationship with GSK ends with the move, and an unfair dismissal claim is subsequently excluded. Whether a severance payment plus transition company is better than challenging the dismissal is an individual calculation that depends on age, length of service, and your prospects on the labour market. For skilled workers from vaccine production, I certainly see alternatives in Dresden and the surrounding area, which alters the calculation.

The deadline that decides everything: three weeks

You must appeal against a dismissal within three weeks after receipt File a dismissal protection claim at the employment court (§ 4 KSchG). If you miss the deadline, the dismissal is deemed valid, no matter how flawed it was. In mass proceedings, the claim is often less a fight for the job than the means to renegotiate severance pay, garden leave and the reference. You can read how the proceedings work under Dismissal and protection against dismissal.

Checklist for GSK employees in Dresden

Do not sign anything, was your employment relationship terminated or altered before the social plan and your personal calculation are on the table.
Save documents: employment contract, amendments, payslips, goal agreements, proofs of length of service and special dismissal protection.
Interim reference request now, while line managers and HR are still on-site. Regarding the wording: Check employment reference.
Involve works council and IG BCE: Attending works council meetings, reading redundancy scheme drafts, asking questions.
Keep track of deadlines: three weeks for the dismissal protection claim, time for reflection with every settlement offer.
Get advice early: You have the strongest negotiating position before the first signature.

My conclusion

The closure of the Dresden vaccine plant is not yet sealed; negotiations are only just beginning. For the employees, this means: buying time, gathering information and not making any individual decisions without considering the overall package. A cleanly negotiated social plan, correctly observed deadlines and reviewed dismissals are worth hard cash in the end. I represent employees from Dresden and Saxony in precisely these proceedings, facing the employer and before the labour court.

Call me for a no-obligation initial telephone assessment, even at short notice: 0351/40436556 or kontakt@kanzlei-reichelt.de. Consultation also available in English. More about my work as Specialist lawyer for employment law in Dresden.

Note: This post provides general information and does not replace legal advice in individual cases. The information regarding the planned closure is based on GSK's announcement of 10 September 2026 as well as reporting by Ärzteblatt, Oiger and IG BCE; as of 15 September 2026.