The EU Blue Card and Termination of Employment – An Overview

October 2026 – Authors: Attorney Till Heinrich, Attorney Volker Mauch

Are you an EU Blue Card holder who has been laid off? If so, you’re probably aware that your residence permit is closely tied to your employment—but it does not automatically expire when your employment ends. Rather, as a residence permit for highly qualified professionals, the EU Blue Card offers special privileges that you should be aware of.

Your residence status remains valid for the time being even after termination. Following job loss, holders of an EU Blue Card are subject to a statutory waiting period, i.e., a transition period. This period lasts three months during the first two years and six months during the remaining validity period of the EU Blue Card (see Breidenbach – BeckOK AuslR, AufenthG § 18 g).

During this time, you retain your status and are free to search for new, qualified employment without restriction. However, if you exceed the statutory waiting periods multiple times due to repeated periods of unemployment, your EU Blue Card may be revoked or subsequently subject to a time limit. It is therefore generally advisable not to exhaust the grace period.

You should also expect that the Foreigners’ Registration Office will be notified of your termination. Your employer must inform the Foreigners’ Registration Office of the early termination of your employment, and you yourself are also required to report the early termination of your employment.

According to Section 18g of the Residence Act (AufenthG), a holder of the EU Blue Card no longer requires permission from the Foreigners’ Registration Office to change jobs. You therefore do not need official approval to enter into a new employment relationship. You are only required to notify the Foreigners’ Registration Office within the first twelve months of employment. However, the authorities may reject the job change if the requirements for the EU Blue Card are not met. This typically becomes problematic if the salary threshold is not met or if the new job is not commensurate with the holder’s qualifications (see Dippe, Hoffmeister – Huber/Mantel, Residence Act [AufenthG], § 18g, margin note 16). Therefore, anyone who accepts a low-paying or underqualified job out of necessity risks having their permit revoked.

For holders of an EU Blue Card, a lawsuit for protection against dismissal can also be worthwhile from the perspective of residence law. They have the option of obtaining a residence permit after just 27 months of employment with pension contributions if they have basic German language skills (Level A1) and even after just 21 months if they have sufficient German language skills (Level B1). This waiting period is calculated based on the actual duration of qualified employment. If your termination is invalid or your employment relationship is extended as a result of a successful dismissal claim, these valuable periods continue to accrue. Every month of employment brings you closer to permanent job security. When weighing the options between a severance payment and continued employment, we therefore always recommend taking this factor into account. The timing of the termination and the terms of a termination agreement influence which periods of employment can be counted toward the requirement. This assessment is complex and should be handled by experts.

If the termination is legally valid, in addition to looking for a new job, extending the Blue Card may also be an option if you find new, qualified employment in a timely manner (J. Nusser – Bergmann/Dienelt, Residence Act § 18g, para. 33). From the perspective of residence law, the termination is therefore not initially a problem if you make a prompt effort to find qualified follow-up employment.

As a law firm, we specialize in the intersection of employment law and immigration law. We will examine for you how an action for dismissal, severance negotiations, and your right of residence interplay in your specific case—because with the EU Blue Card, the proper coordination of these three aspects determines whether you will fully retain your right to remain in Germany.