There is no general right to severance pay in the event of termination. In order to avoid a lawsuit for protection against unfair dismissal, many companies pay one anyway.
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Berlin More and more companies are announcing job cuts – due to economic pressure. For example, the carmaker Opel wants to cut up to 1,000 jobs in Germany. The chemical giant BASF is also planning an austerity program that will primarily affect the headquarters in Ludwigshafen.
If there is a dismissal, the shock is usually great. Those affected often hope to be compensated at least somewhat for the loss of their job with a severance payment. A few thousand euros as a buffer until a new job is found should be in there – after all, you have put all your energy into your work for years.
The bad news is that there is no general legal entitlement to a severance payment. The good news: In many cases, companies still pay one. The Handelsblatt has asked several experts when a severance payment will be made, how high it should be and what tax considerations need to be taken into account.
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