When layoffs occur in Germany, employers often offer their employees severance pay. There is not necessarily a legal right for this; In most cases, however, the employer will pay a severance payment. Either “voluntarily”, often only after a corresponding court…
In labour law, a warning letter (Abmahnung) is a formal reprimand in which one contracting party (typically the employer) accuses another contracting party (the employee) of a specific breach of duty. The employee is thereby requested to refrain from the…
A termination during short-time-work (Kurzarbeit) in Germany is generally – legal! There is a widespread misconception that your employer cannot fire you during “short-time-work” (Kurzarbeit). Wrong. Provided that there are (new operational, personal or behavioral) reasons for dismissal, a termination…
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. And generally “in full”, although the severance payment for the loss of a job is…
Termination without notice, also known as extraordinary dismissal, is a situation in which the employment relationship is terminated without observing the usual notice periods. This has significant consequences for the employee, as it leads to a sudden loss of income,…
Every year, more than 200.000 lawsuits against unfair dismissal are filed in Germany. Whenever an employer dismisses employees, most of them will receive a severance payment. Even though technically, there is not always a legal claim to such payments. In…
Employees and employers in Germany can terminate an employment relationship without notice by signing a termination agreement. If the employer initiates termination talks, a severance payment will almost always be part of a termination offer. But be careful: A job…
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 – and how much – tax you might have to pay if you…
A termination for “operational reasons” in Germany is generally possible, if the job position of the employee who is terminated is abolished. However, there is a relatively high bar with several criteria that need to be met. For example, it…
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 is lost. The obvious question, in this case, is: What happens to…