Severance Pay

• Job termination
• Severance Pay

A termination without notice (also known as ‘extraordinary termination’) ends the employment relationship immediately – without any notice period. ...

• Job termination
• Severance Pay

The law protects the continuity of employment relationships. The legislator takes into account the fact that the employer is usually in a stronger ...

• Job termination
• Severance Pay

When a company or business is permanently closed, it is often due to ‘termination due to closure of business’. There are clear and strict rules for...

• 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...