Severance pay in Germany

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There is no universal entitlement to a payment simply because an employment relationship ends. A right may arise from an agreed settlement, social plan or a particular statutory route.

What needs checking

A negotiated amount depends on matters such as litigation risk, notice exposure, tenure, remuneration and the parties’ priorities. A commonly used formula is a negotiation reference, not a guaranteed court award.

Practical next steps

Compare the whole package: payment date, bonus, holiday, release, reference, tax and benefit consequences. A larger headline figure can be less valuable if important claims are waived without assessment.

Prepare for the review

Send the relevant contract or policy, a short chronology, the correspondence and any document showing a deadline. Explain the outcome you need and any steps already taken.

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Updated: 8 November 2026.