Your job is gone due to a termination, but are you entitled to a severance payment?
How to find out and possibly get more money.
When executives, such as managers or board members, leave, there is often talk of high severance payments.
For most employees, however, things are different.
Even if you get fired, it doesn't necessarily mean you're entitled to severance pay.
If you know where you stand legally and what applies to you, you can improve your own financial situation and receive a severance package.
Severance pay after termination: Factors affecting the amount of the severance pay
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You are not always entitled to severance pay, but if you are, you should negotiate.
© Imago
The amount of the possible severance payment depends on various factors.
The following factors are taken into account:
amount of salary
length of employment
industry and region
negotiation skills
You may be given a fairly high severance offer.
If you notice that, there is a chance that there are legal doubts about termination.
The Finanztip
portal
informs that severance payments of between half a month and one gross monthly salary per year of employment are common.
With a gross monthly salary of 3,000 euros and five years in the company, that would be 7,500 euros standard severance pay.
For example, you can use the last three gross monthly salaries as a guide.
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What favors a high severance payment?
If you cannot legally be dismissed, it is possible that the employer will estimate a high severance payment.
If you accept that, it may be that it can be cheaper and less stressful overall.
Because then there is no court case.
It would be conceivable, for example, that a high severance payment be set for members of the works council or staff council.
These people are subject to special protection against dismissal.
According to the calculation, Germans receive around 14,300 euros in severance pay
The Chevalier lawyers evaluated their internal data and found that German employees received an average severance payment of 14,300 euros.
There is a clear difference between East and West Germany.
People in the west would get a severance payment of around 15,800 euros, in the east (including Berlin) the sum would be around 8,000 euros.
There is also a difference in the level of severance pay for women and men.
Women received less because the earnings are often lower.
Termination of the employment contract: the most important facts that everyone should know
Termination of the employment contract: the most important facts that everyone should know
Severance pay: What cases can there be?
The termination of an employment relationship is in the room, a termination agreement has been submitted to you or you have already received notice?
These can be situations in which you deal with the issue of severance pay.
A right to severance pay in the event of a termination may exist if the employer terminates the contract due to urgent business needs, the employee or employees do not take legal action and the letter of termination provides for a severance payment in the event.
This is what the lawyer Sophia-Katharina Horner from Chevalier says in an interview with
Finanzfluss
.
However, a severance payment can also be obtained if there is protection against dismissal under the Dismissal Protection Act and the termination by the employer would probably not be effective.
How much time do I have for severance pay?
If you have received the notice, you should not lose much time.
You have three weeks to take legal action against a dismissal and to file an action for protection against unfair dismissal.
Of course, within this period you also have the option of speaking to your (former) employer outside of court and obtaining a severance payment or changing the amount.
After the three weeks have expired, the termination is final, which means that you can no longer obtain severance pay because it is no longer possible to take legal action.
If you've filed a lawsuit, a settlement may also be reached, Horner said at
Financial Flow
.
Can I negotiate my severance pay?
If you are entitled to a severance payment and you are offered a certain amount, you can of course negotiate this.
You should consider points that underpin why you are entitled to a higher severance payment.
You should also consider whether you have enough money to bridge the gap until you get your next job.
You should also keep an eye on your pension.
But be careful: the severance payment has an effect on the tax.
List of rubrics: © Imago
