If employees unexpectedly receive a notice of termination, they often receive severance pay as compensation. But when do I get money – and how much?
A severance payment is a one-off payment made by employees from their employer in the course of a Termination* obtain. It is intended to compensate the employee for the loss of his job and in the course of this create a certain financial compensation. Severance payments are also paid in the case of termination agreements.
When am I entitled to severance pay in the event of termination?
A fundamental one There is no legal entitlement to a severance payment in Germany. Nevertheless, according to labor law, severance payments are paid in certain cases:
- at redundancies for operational reasons, if Section 1 of the Employment Protection Act (KSCHG) seizes,
- at a Dissolution judgment of the labor courtif a continuation of the employment relationship is unreasonable (Sections 9 and 10 KSchG),
- at a Settlement comparison,
- if a collective agreement applies,
- if there is a social plan (agreement between works council and employer) and
- in the case of disadvantage compensation for the employee (Section 113 Works Constitution Act)
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How high is the severance payment in the event of an operational dismissal?
As already mentioned above, the employer only has to pay a severance payment under certain conditions in the event of operational dismissal – if Section 1 of the Dismissal Protection Act (KSCHG) applies:
“If the employer terminates due to urgent operational requirements in accordance with Section 1, Paragraph 2, Clause 1 and if the employee does not take legal action to determine that the employment relationship has not been terminated by the termination, the employee has to Expiry of the notice period, entitlement to severance pay. “
If the employer mentions the operational reason together with a severance payment in the notice of termination, the employee can wave a severance payment. To do this, however, the employee must have the Allow the deadline for a dismissal protection suit to pass.
The company can determine the amount of the severance payment itself. Usually one is half the gross monthly salary per year of employment in the company.
Does a severance payment have an impact, for example on unemployment benefits?
A severance payment is intended to cushion the financial losses caused by the termination, therefore it also does not count towards contributory earnings. No social security contributions such as contributions to pension, health, long-term care or unemployment insurance may be deducted from the severance payment.
Nevertheless, the severance payment is subject to Tax liability, So the employer has to pay the wage tax. However, if the severance payment is transferred in full, the rule of one fifth applies, ie the tax burden is evenly distributed over five years and is thus lower. In principle, however, your employer can also pay out the severance payment in installments.
On the Unemployment benefit The severance payment must also not have a negative impact. A blocking period for unemployment benefit I is only possible if you have one Termination or liquidation agreement agreed with your employer. Shortening the notice period can also be problematic. (as) * Merkur.de is an offer from IPPEN.MEDIA.
Also read: These are the most frequently asked questions about termination.
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