The paper analyses the impact of several factors on the perceived fairness of layoffs. The empirical analysis is based on a telephone survey, in which 3000 individuals in working age were interviewed. This survey allows for the first time to assess fairness perceptions of the employment relationship in Germany. We find that respondents perceive hypothetical layoff scenarios as more fair if the reason for the event was external instead of internal, if the laid off employees received severance pay and outplacement, and if the works council was involved. A negative impact is found for bonus payments for managers, who have initiated layoffs to cut employment costs.