Severance Pay in Germany

German Employment Lawyers

Severance Pay in Germany

German Employment Lawyers

Contrary to a widely held assumption, it is essential to note that employees in Germany do not inherently possess a legal entitlement to severance pay following the termination of their employment. Nevertheless, certain exceptions exist, allowing employees to claim severance payments. These exceptions are carefully outlined in corresponding compensation regulations, embedded within various legal frameworks such as social compensation plans, collective bargaining agreements, management contracts, and individual employment contracts. Additionally, parties involved in an employment contract may voluntarily establish a contractual agreement regarding severance payments during the termination process, typically detailed in a termination or settlement agreement.

Severance pay plays a pivotal role in the employment relationship, serving as a financial safeguard for employees and a crucial consideration for employers. In the German legal context, dealing with the intricacies of severance pay requires a deep understanding of German labour laws and regulations. Whether you are an employer looking to ensure fair and compliant severance packages or an employee seeking to understand your rights, gaining insight into the specifics of severance pay is essential.

At Schlun & Elseven Rechtsanwälte, we recognise the importance of empowering individuals and businesses with the knowledge they need to make informed decisions. This page aims to provide valuable insights, legal perspectives, and practical information related to severance pay in Germany. Should you require specialised assistance relating to severance pay in Germany, please do not hesitate to contact us directly.

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