Terrorism and HR: Employment law consequences of visa-related deportation

An inconspicuous morning screening in the HR department, an automated software match – and suddenly the name of a top international developer or key executive appears on an updated EU sanctions list. What at first glance seems like an extreme, isolated scenario is increasingly affecting well-known technology companies, defense companies, and operators of critical infrastructure in Germany in times of geopolitical upheaval and stringent compliance audits. For the affected HR departments and highly qualified foreign professionals from countries like the USA , Great Britain , or Canada, this triggers an exceptional legal situation where every procedural error can have irreversible consequences. As a specialized law firm for migration and commercial law, we repeatedly encounter a dangerous lack of awareness regarding the direct link between EU sanctions law, German labor law, and the German Residence Act.

What legal reporting obligations do employers face immediately if their data is flagged?

If a foreign skilled worker or expat is listed on one of the relevant EU terrorist lists (such as Regulation (EC) 2580/2001 or Regulation (EC) 881/2002), the clock starts ticking immediately. Employers are legally obligated to report any positive match without delay to the German Federal Bank (Deutsche Bundesbank) and the Federal Office for Economic Affairs and Export Control (BAFA). This reporting obligation applies regardless of whether the match is based on a misunderstanding or a case of mistaken identity. Failure to report or delaying this notification constitutes a serious administrative offense and is itself subject to a fine.

In parallel with the official notification, the strict prohibition on providing funds or economic resources under EU anti-terrorism regulations automatically applies . This prohibition stipulates that listed individuals may not be provided with any funds or resources, either directly or indirectly. For the HR department, this means with immediate effect: any salary payment to the employee in question is strictly prohibited from the moment the department becomes aware of the employee's status.

Why does the EU provision ban lead to the impossibility of remuneration under § 275 BGB?

In HR practice, the misconception persists that employment contracts with sanctioned individuals are void from the outset due to immorality under Section 138 of the German Civil Code (BGB). This is not legally correct. The employment contract remains valid, but a legal impossibility arises: Since the employer is prohibited from paying the salary due to EU sanctions law, the primary contractual obligation cannot be fulfilled. From a legal perspective, this constitutes a subsequent impossibility of the obligation to pay remuneration under Section 275 of the German Civil Code (BGB), as permanent employment without remuneration is systematically inadmissible under German labor law.

Because the prohibition on secondment is absolute and extends to all areas of the company, a transfer or other employment of the expat within the company is legally prohibited. However, this does not automatically terminate the employment relationship. To ensure legal certainty, companies must actively initiate the termination.

Under what conditions is extraordinary termination pursuant to Section 626 of the German Civil Code (BGB) the only option?

Since the performance and remuneration of the work have become legally impossible, there is regularly a valid reason for extraordinary termination without notice pursuant to Section 626 Paragraph 1 of the German Civil Code (BGB) . In this context, strict adherence to the preclusive period stipulated in Section 626 Paragraph 2 of the BGB is essential, according to which termination can only take place within two weeks of becoming aware of the relevant facts.

At the same time, labor law is inextricably intertwined with immigration law: A hit on a terrorist watch list generally constitutes a serious public interest in deportation under Section 54 Paragraph 1 Number 2 of the German Residence Act (AufenthG) . The responsible immigration authority will subsequently initiate deportation proceedings, revoke the residence permit (such as the EU Blue Card under Section 18g of the Residence Act or the settlement permit under Section 18c of the Residence Act ), and threaten deportation. For highly qualified professionals from third countries such as the USA , UK , or Canada, this represents a life-altering event.

What role do BAFA exemption permits play before a notice of termination is issued?

As a law firm, we strongly advise companies and affected professionals against hasty action. Before issuing a dismissal without notice, it is essential to carefully examine whether an application for an official exemption from the Federal Office for Economic Affairs and Export Control (BAFA) is likely to be successful. EU regulations stipulate strict exceptions – for example, to cover the basic needs of the individual and their family members, or for services already rendered before the employee was listed.

If such an application is submitted in a timely and strategically sound manner, it can potentially provide time for a detailed review to clarify whether there has been a case of mistaken identity. We support HR teams and affected academics in legally managing interface issues between the Residence Act, the German Civil Code (BGB), and European sanctions law, and in challenging erroneous deportation decisions in court.

Conclusion

Visa-related deportation and work bans resulting from EU sanctions lists demand a cool head and precise legal timing from HR departments and affected professionals . The chain of events—from immediate notification to the Bundesbank/BAFA, adherence to the salary freeze due to impossibility of performance under Section 275 of the German Civil Code (BGB) , and timely extraordinary termination under Section 626 of the BGB— leaves no room for error. Early involvement of immigration and labor law experts minimizes liability risks for companies and effectively protects the legitimate interests of highly qualified professionals .