Does my employer have to pay me a severance package if I am terminated?
January 4, 2022 | 40,00 EUR | answered by Sofia Vöss
Dear Lawyer,
My name is Erwin Lippert and I have been working for my current employer for five years. Recently, I was informed unexpectedly that my employment is being terminated due to operational reasons. There is no provision in my employment contract for a severance payment in case of termination.
I am very concerned about how I will financially manage if I lose my job. I have heard that under certain circumstances, employees may be entitled to a severance payment when they are terminated. Is this true? Does my employer have to pay me a severance, even if it is not specified in the employment contract?
I am unsure of the best course of action in this situation and what steps I can take to protect my rights. Are there possible solutions to still receive a severance payment? Or should I rather focus on finding a new job?
I would greatly appreciate it if you could assist me in this difficult situation and provide me with information on whether my employer is obligated to pay me a severance and how I should proceed in this case.
Yours sincerely,
Erwin Lippert
Dear Mr. Lippert,
Thank you for your inquiry regarding your termination and the question of whether you are entitled to a severance payment, even though it is not stipulated in the employment contract. In fact, employees may be entitled to a severance payment under certain circumstances when they are terminated for operational reasons.
According to § 1a of the German Protection Against Unfair Dismissal Act (KSchG), employees may be entitled to a severance payment if the employment relationship is terminated for operational reasons and the employer is unwilling to pay a severance payment determined by the labor court. Typically, the amount of the severance payment is half a month's salary per year of employment. However, the employer must offer a severance payment on their own initiative if they terminate the employee for operational reasons.
Since there is no provision in your employment contract regarding a severance payment in case of termination, it may be that your employer has to offer you a severance payment if they terminate your employment for operational reasons. In this case, you should first contact your employer and inquire whether a severance payment will be made in your case. If not, you can consult a specialized lawyer in labor law to assert your rights.
It is important that you uphold your rights in this situation and not hastily accept the termination without checking whether you are entitled to a severance payment. A severance payment can help you financially bridge the gap until you find a new job and provide some security.
Of course, it is also advisable to start looking for a new job while resolving the question of the severance payment. Depending on how long it takes to clarify the severance payment issue, it is important that you secure yourself financially and potentially apply for unemployment benefits.
I hope this information is helpful to you and I am available for further questions. Please do not hesitate to contact me if you need further assistance.
Best regards,
Sofia Vöss
Employment Law Attorney
