Understanding severance pay – and using it correctly

• Why every decision counts now
• What many overlook
• The most important basics – briefly explained
• What happens next
• Rating for this site

Whether you have received a notice of termination or have given one yourself, the issue of severance pay is never clear-cut. Hardly any other area of employment law is so characterised by myths, half-knowledge and emotions. Many believe that there are clear rules or fixed rates. In reality, the right strategy – and timing – are what matter.

Why every decision counts now

The clock is ticking for employees: a lawsuit must be filed within three weeks of receiving the notice of termination, otherwise the termination is considered valid. This deadline is irrevocable – and determines whether negotiations can even take place. That’s why every day counts.

For employers, it is a matter of planning security. An ill-considered reaction or a hasty settlement can result in high costs. On the other hand, those who check their legal position at an early stage and act strategically can limit risks – and control the outcome.

What many overlook

Severance pay is not a fixed sum, but a result of power, motivation and tactics. Legally, it is based on assessments: How strong is the position of both sides? How risky would a trial be? How great is the interest in a quick settlement? These questions determine thousands of euros of difference – in both directions.

Psychological factors also play a role. Pressure, uncertainty, emotion – all of these influence negotiations more than any legal provision. That is why it is worthwhile to proceed in a structured manner and with a cool head – whether as an employee or an employer.

The most important basics – briefly explained

• No legal entitlement: In most cases, severance pay is purely a matter of negotiation.
• Deadlines are crucial: Three weeks after receipt of the notice of termination, the deadline for legal action expires, and with it the pressure to agree on a severance payment.
• Tactics count: The timing, arguments and your own negotiating position determine the amount.
• Strategy saves money: Those who are prepared achieve better results – whether in negotiations or in court.

What happens next

These basics are just the beginning. In my free information pack, you will learn in detail:

• How to use these deadlines to your advantage
• How to avoid typical mistakes that cost you money
• And when legal support makes all the difference

You don’t have to settle for half-knowledge – you can know what is really possible. That’s exactly what the information pack is for. It is free and compact (.pdf, 5 A4 pages, clearly laid out in three columns). Ideal for reading on the go or printing out – whichever you prefer. Click on the button to find out how to get the information pack right away:

Get more information on this topic free of charge: Via special absence notification by email – no registration required and no risk. Clicking on the following link will open your email programme with a prepared message. This message is addressed to a specially set up address with an auto-responder.
About 10 minutes after sending your enquiry, you will automatically receive a reply to the address used.

Dont send from your company's account!

Our answer will go back there but you might loose that accout soon.
Open mail on this system: Open request-mail directly Share link with your private account: In our reply you get lots of concise information and frequently asked questions, e.g.:

• What is the best way to deal with the situation now?
• What deadlines do I have to meet?
• What is a realistic severance pay?
• And: How much does legal advice actually cost?

(Of course, I am not really absent; it is just that this special address is set up this way).
The reply is free of charge, non-binding and does not commit you to anything. You decide for yourself whether you want to take further steps afterwards – or simply read through it at your leisure first. My information is independent, honest and comes directly from my daily consulting practice.

Data protection notice: The text and subject of your email will be processed by a computer. Your email address will be stored for 31 days and then deleted. It will not be passed on to third parties. More information can be found in the privacy policy.

(Click anywhere to close)

Note: this website describes the situation in Germany.

Rating for this site

• Severance pay – do I really have to pay it?
• Received unfair dismissal claim or severance payment claim
• Strategically towards fair compensation
• Severance pay – how much am I entitled to?
• Received a notice of termination – what now?