Lawyer Severance Pay Munich

SEVERANCE PAY AND SEVERANCE NEGOTIATIONS

Severance pay compact

WHAT EXACTLY IS A SEVERANCE PAYMENT?

Definition:

A severance payment is a one-off payment made by an employer to an employee, usually as compensation for the termination of the employment relationship.

It is often paid as part of a termination agreement or amicable dismissal, but can also be made following a court judgement or an agreement under labour law.

The amount of the severance payment can depend on various factors, such as the length of service, the reason for the termination of the employment relationship and the applicable labour law provisions in the respective country.

SEVERANCE PAY AND SEVERANCE PAY NEGOTIATIONS WITH EXPERT ADVICE AND REPRESENTATION BY A LAWYER

Today, severance payments play an important role in dismissals and the associated dismissal protection proceedings. Employees, executives and managing directors can now negotiate high settlements and severance payments or severance agreements in the event of dismissals with suitable negotiation strategies. However, due to the complexity of German labour law, severance payments and severance negotiations should not be approached without the assistance of an experienced lawyer.

WHEN ARE YOU ENTITLED TO A SEVERANCE PAYMENT?

There is by no means a general entitlement to severance pay. Managers and employees in positions of responsibility often negotiate their severance payment before they sign their contract. Furthermore, severance payments can result from agreements between the works council and employer or trade unions and employer. It is also often possible to negotiate severance payments in the event of redundancies for operational reasons. In practice, persistence usually pays off. Dismissal protection proceedings conducted with the support of a lawyer often end with a settlement that provides the employee with an appropriate financial settlement.

HOW HIGH CAN A SEVERANCE PAYMENT BE?

There are also no legally fixed amounts of severance pay. It is a matter of weighing up certain interests and the associated negotiating skills during severance negotiations. The employer has an interest in avoiding dismissal protection claims and possibly saving further salary costs. The employee has an interest in being financially secure, but also in not working longer than necessary in an environment of dispute. A settlement acceptable to both sides is then negotiated between these positions.

In practice, factors are often used to determine initial sums. A factor of 0.5 (half a month's gross salary per year of service) is often regarded as a ‘standard settlement’, at which both sides have roughly the same interest in terminating the employment relationship quickly. Higher or lower values then indicate varying degrees of interest.

HOW DOES THE LAWYER HELP WITH SEVERANCE NEGOTIATIONS?

A lawyer can provide crucial assistance in redundancy negotiations by analysing the employee's legal situation and developing a sound strategy. He will analyse the employment contract, possible grounds for dismissal and the prospects of success of an action for protection against dismissal in order to strengthen the negotiating position. He also knows the usual severance payment amounts and can prevent the employee from settling for an offer that is too low.

The lawyer will communicate directly with the employer or their legal representatives in order to reduce emotional stress for the employee and ensure objective, professional negotiations. The lawyer will also check whether other claims such as remaining holiday, bonus payments or a favourable reference can be secured. If no agreement is reached, the lawyer can represent the employee in court and fight for the best possible solution. With the support of a lawyer, the chances of a fair severance payment and a legally secure termination of the employment relationship increase.