Am I entitled to severance on dismissal?
Many believe that a dismissal always automatically comes with severance. That is not quite true: a general statutory entitlement exists only rarely. In practice, however, severance is often paid, especially when the dismissal is contestable.
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What you should do now
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1. Have the dismissal checked
How contestable is the dismissal? Your negotiating position depends on that.
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2. Meet the 3-week deadline
An unfair dismissal claim must be filed within 3 weeks of receipt; it is often the lever for a severance.
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3. Check offers
Check a severance offer (§ 1a KSchG) or a termination agreement carefully, also because of a possible blocking period for unemployment benefit.
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4. Negotiate/get advice
Get legal advice and negotiate, especially on the amount and the wordings.
Frequently asked questions
Am I automatically entitled to severance on dismissal?
Usually not. A statutory entitlement exists only in special cases, for example with an offer under § 1a KSchG (redundancy dismissal in exchange for waiving a lawsuit) or via a social plan. Often, however, severance is negotiated in the context of an unfair dismissal claim; the more contestable the dismissal, the more likely.
How high is severance usually?
As a rough guideline value, often 0.5 gross monthly salaries per year of employment apply, but that is not a fixed rule, rather a matter of negotiation and it depends strongly on the prospects of success of a lawsuit. Watch out for the 3-week filing deadline and get advice before signing, also because of a possible blocking period.
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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.