Workers receive severance pay on the basis of their uninterrupted working time with their employer. This amount is paid at the employee`s base rate for normal hours worked. An arbitral award or agreement may have different redundancy provisions that may apply in place of those mentioned above. These provisions, such as. B sector redundancy schemes may terminate the listed exceptions. For example, sectoral regulation of redundancies in the local construction sector means that employers of small businesses may be required to pay severance pay. The following employees do not receive severance pay: some employees do not receive severance pay when their employment is laid off. In Germany, there is no legal compensation. Workers are entitled to severance pay as part of a social plan with the Works Council (often agreed in the event of collective dismissals) or as part of a collective agreement. A small business employs less than 15 people. Some small businesses do not have to pay severance pay if they fire an employee.
In the case of collective dismissal, there is a legal right to severance pay for a worker where there is an enterprise committee. According to the formation of the Works Council, employers and company committees negotiate a social plan involving severance pay. The termination of an employment contract by termination or termination contract must be made in writing to be valid. The legal obligation to write cannot be abandoned by employment contract, collective agreement or enterprise contract. A termination with defects in formalities is not smoothed out and cannot be corrected. In the event of a serious breach of the employment contract, the employer may terminate and terminate the employment with immediate effect. This termination must be notified within two weeks if the employer is aware of the underlying facts that led to the dismissal. A small business employer is an employer that employs fewer than 15 employees at the time of dismissal to determine redundancy pay. For employees with at least 10 years of permanent operation, redundancy pay is reduced from 16 weeks to 12 weeks.