This article examines the role of business in the historical development of job security regulations in Germany from their creation in the inter-war period to the dawn of the crisis of the 'German Model' in the 1990s. It contrasts a varieties of capitalism perspective, which views business as a protagonist, or at the very least a consenter, in the development of job security regulations, with a conflict-oriented perspective, which has the labour movement as the protagonist and business as an antagonist in the development of job security regulations. The empirical analysis is based on primary and secondary sources and shows that German employers have never favoured strict over flexible job security regulations. Quite the contrary, high levels of job security regulations were forced upon employers during periods of business weakness by a radicalized labour movement in the aftermath of both World Wars.