The most important thing first: there is no general legal Severance payclaim in the event of a Termination. The law provides for Severance payclaims only exist in very specific cases, namely in certain cases of dismissal for operational reasons. Terminationa judgment of dissolution, in the case of a social plan or as a Compensation for disadvantagesclaim.
You can also Severance payare based on agreements, such as collective agreements, Works agreementor the employment contract.
Many TerminationNevertheless, protection proceedings often end with the payment of a Severance pay. Roughly speaking, the employer buys itself out of the risk of losing the case and having to keep you on as an employee. Depending on how strong the positions are, the amount of the Severance paypayment. Experience has shown that in most cases it is therefore worthwhilecosts and to have an experienced negotiator at your side.
It is also important that the Severance pay is generally fully taxable. However, it is exempt from social security contributions. Should the Severance pay have been paid out in full in one calendar year, a tax reduction, the so-called FIFTH RULE can be applied for.