What you need to know about fair severance pay in Germany
Do you always have a right for severance pay in Germany?
When your services are no longer needed by your employer, you will very often get a severance payment (“Abfindung“). Even though there is no general statutory right to severance pay in Germany. However, when an employment relationship is this country is terminated, the employee will receive some kind of severance payment most of the time. Most employers agree to pay “something”, even if there is no 100% clear legal case for a severance payment. And in many cases, you have a legal right for a substantial payment. Calculate your fair severance package here:
Well – that depends. The amount of severance payment to be paid by the employer in the event of termination depends on many factors – and is of course also the result of negotiations. However, there are three factors that are most relevant for the expected amount of a severance payment. These are:
Type, effectiveness and grounds of the termination. This drives the multiple” (generally between 0.5 and 1.2, in some cases even higher and highly depending on your individual case.
Length of service: How many years have you been employed at your company
Last wage: Including bonuses and other variable elements
Especially if the termination is not “justified” (happens a lot!), you should consider having a specialized employment lawyer negotiate your severance payment. Because he or she will obtain the fair amount of severance pay for you. To do so, a formal complaint against unfair dismissal to the labor court may be required. Finding the right lawyer can be tough. Platforms like AbfindungsHero can help. One thing, however, is very important! You need to act within 3 weeks after receiving your termination to have any chances of a fair severance pay. You can find a severance calculator for a first estimate here:
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