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Severance Agreement In German

Although there is no legal right to severance pay, the dismissal letter allows some workers to benefit from severance pay: in the event of a company-related dismissal, your employer can explicitly declare your right to severance pay in the dismissal letter. As a general rule, the termination of an employment relationship through a cancellation contract makes the most economic sense. In many cases, an amicable agreement to terminate the employment relationship, with a cancellation contract or a judicial settlement, is concluded by judicial or extrajudicial means. Cancellation agreements must be in writing. This means that both parties must sign the agreement in their hands. To avoid mistakes that can often be very costly, a lawyer should be consulted before entering into a cancellation contract. In essence, a cancellation contract may contain the following elements: the amount of the severance pay proposed by the Labour Court depends mainly on the chances of success of the requirement as well as on the seniority and salary of the worker. The amount of the proposed allowance generally varies between half a gross monthly salary and the full monthly salary per year of employment. However, in some cases, a higher severance pay may be negotiated. If you are looking for an experienced and competent legal team to speak your language, then you have come to the right place.

Dr. Thomas Bichat and Jens Schmidt are here to make sure you are insured on legal issues related to severance pay. Our highly competent team of lawyers, with their legal know-how, resulting from several years of collaboration with all forms of workers and employers, will be judged to offer you the advice you deserve. In addition, employers often pay severance pay as part of these procedures, which shows that the prospect of severance pay in the event of protection against dismissal is good. In theory – but rarely in practice – it is also possible that the employer will be ordered under Paragraph 9 – 10 KSchG to pay severance pay. . . .

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