Every year, there are 200.000 lawsuits against unfair dismissal in Germany (BMAS). When an employer dismisses employees, many will receive a severance payment. Even though technically, there is not always a legal right to such a payment. In practice, however,…
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…
Does an employee have to pay tax on his severance pay if she/he loses her/his job? Unfortunately, in Germany: yes! Employees who receive a severance payment for the loss of their job have to pay tax on this income. However,…
Sometimes, a termination comes “out of the blue”. But not always. Often, there are signs that an employee might get fired. In this blog article, we will first summarize the three most important signs that a termination could be imminent.…
A termination for “operational reasons” can be legal in Germany 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. Almost no one has taken exactly the remaining annual leave before a notice from their employer. The obvious question, in this case, is: What happens to holiday…
A termination during parental leave in Germany is generally prohibited. Germany tends to be among the more employee-friendly countries, especially when it comes to firing employees. However, you still can get fired in Germany, and in rare occasions, even during…
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…