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Employers pay severance to employees to compensate for job loss. However, what many employees do not know: As a rule, there is no entitlement to severance pay (exceptions may exist, for example, if severance pay is expressly stipulated in the employment contract).
Severance pay after court settlement
Even if there is usually no entitlement to a severance payment (see above), in practice it very often happens that the employer and the employee agree on such a payment. If, for example, the employer terminates the employee and the employee defends himself against this with an action for protection against dismissal, a corresponding payment can be interesting for both sides: The employer saves costs and time for legal proceedings (or what can also sometimes be important, that he thereby keeps the "social peace" in his company among the other employees); the employee may also no longer have much "desire" for the previous job and would like to try something new professionally. In this case, for example, an appropriate payment can make sense for both sides.
Severance pay within the scope of a termination agreement
In practice, it happens quite often: The employer offers the employee a termination agreement. In addition, the employee is offered a contractual severance payment. The prerequisite for this is that the employer signs the termination agreement and waives the right to take legal action against dismissal. But caution is advised here! As tempting as it may be. There are many pitfalls lurking here. The following can happen, for example: The employee's behavior may be interpreted as meaning that he has voluntarily given up his employment relationship. This in turn can have the following consequences: A blocking period of up to 3 months for the receipt of unemployment benefits. Therefore, please seek legal advice before signing anything too hastily.
Amount of severance pay
The amount cannot be answered in a general way, because it depends on many individual factors. It is particularly important to negotiate "well" with the employer. Let us represent you in these negotiations. Dr. Josip Kuvac represents his clients in the field of labor law in Frankfurt am Main and the surrounding area. Dr. Kuvac has worked for large international law firms in Frankfurt am Main and in the USA and knows exactly what is important in contract negotiations. Please feel free to contact us using the form below and we will get back to you as soon as possible. If you wish, you can also enclose documents via the contact form. This way, we can already check your documents as part of our free initial review and see how we can best help you.
How much will I have left from the severance pay?
No social security contributions (e.g. pension, health or nursing care contributions) are paid on this. However, the corresponding payment is taxed in accordance with the rules on wage tax deduction.
How can we help you?
We are assertive lawyers and have a lot of experience in contract negotiations. Our firm's founder, Dr. Josip Kuvac, has worked for large international law firms. There he represented many large companies, including global players. He therefore knows exactly how companies "tick". Since he knows the other side very well, he is able to represent the interests of employees in negotiations. Dr. Kuvac is also fluent in Croatian (native speaker) and English. He has the necessary intercultural skills to achieve the maximum for you.
Registration as "jobseeker
As soon as you receive a notice of termination, please immediately register with the Employment Agency as a "job seeker". If you do not report in time, you may be subject to sanctions.
If you have any questions about labor law issues, just contact us. You are welcome to use our contact form for this purpose. If you wish, you can also enclose documents via the contact form. In this way, we can already check your documents as part of our free initial review and see how we can best help you.