Severance Pay

• Severance Pay
• Tax on severance pay
• Termination agreement

One-fifth rule for severance pay: If there is a mutual separation between employer and employee by means of a termination agreement, or if the empl...

• Severance Pay

In theory, most employees in Germany might not have a legal claim for a severance package. In practice, however, severance payments will be made almost all the time, often triggered by the lawsuit that many employees use as part of the negotiation process.

• Job termination
• Other
• Severance Pay

The tech industry - once an unstoppable engine of growth - has started to lay off people in large numbers. In 2024 alone, more than 100,000 employe...

• Job termination
• Severance Pay

When layoffs occur in Germany, employers often offer their employees severance pay. There is not necessarily a legal right for this; In most cases,...

• Job termination
• Severance Pay

Losing your job comes as a surprise - at least for most employees. And almost no one has ever taken exactly the remaining annual leave, when a job...

• Job termination
• Severance Pay

A termination during short-time-work (Kurzarbeit) in Germany is generally - legal! There is a widespread misconception that your employer cannot fi...

• Severance Pay
• Tax on severance pay

Do you have to pay income tax on severance pay in Germany? Yes -  unfortunately, employees have to pay income taxes also on their severance pay. An...

• Job termination
• Severance Pay

Termination without notice, also known as extraordinary dismissal, is a situation in which the employment relationship is terminated without observ...

• Severance Pay
• Tax on severance pay

Do you have to pay tax on your severance pay if you lose your job? Unfortunately, in Germany, the answer is yes. This blog article explains why - a...

• Job termination
• Severance Pay

A dismissal for operational reasons (betriebsbedingte Kündigung) is one of the three types of dismissal enshrined in the German Unfair Dismissals P...