Severance
Taxation of severance payments in Germany: What employees should know
What employees should know about the taxability of severance payments, the one-fifth rule, the year of receipt and the tax treatment from 2025.
Read article →EMPLOYMENT LAW · BERLIN · GUIDE
Guide to dismissal, severance and termination agreements
Here you will find short and understandable information on typical questions around dismissals, severance payments, termination agreements and separation arrangements. The articles provide general orientation and do not replace legal advice in an individual case.
Termination Agreement
Settlement Clause in German Employment Law: What Employees Should Know
Settlement clauses are common in settlement agreements, separation agreements and court settlements. What employees should know before settling or waiving potential claims.
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Settlement Agreement: What Employees Should Know Before Signing
A settlement agreement ends the employment relationship without a dismissal. What employees should know before signing – including voluntariness, written form, deadlines, severance pay and typical contract clauses.
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Reviewing a Settlement Agreement: Why Severance Pay Is Not the Only Issue
Why severance pay is not the only important point in a settlement agreement. Overview of termination date, release, salary, unemployment benefits and risks.
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Sprinter clause in termination agreements: What employees should know
What a sprinter clause or turbo clause means, when it may be useful in connection with a new job and what employees should watch out for regarding severance, release from work and early exit.
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Change notice in Germany: What employees should know
What a change notice means, which options employees have and why the three-week deadline and accepting under reservation can be important.
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Employer Withdraws the Dismissal: Do I Have to Return to Work?
Once a dismissal has been received, the employer cannot simply withdraw it unilaterally. What employees in Germany should know about returning to work, dismissal protection claims and default-of-acceptance pay.
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Won a Dismissal Protection Case: Severance Instead of Returning?
If an employee wins a dismissal protection case, the employment relationship generally continues. If returning is unreasonable, the labour court can dissolve it on application and award severance pay.
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New Job During a German Dismissal Protection Case: Do I Have to Return to My Former Employer?
Employees often take a new job while a dismissal protection case is still pending. If they later win, the old employment relationship may still exist. What employees should know about their options under German law.
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Default of acceptance after dismissal in Germany: When employees may claim wages
What default of acceptance means after a dismissal, when wage claims may arise and why interim earnings, registration with the employment agency and job search efforts may matter.
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Written warning in Germany: What employees should know
What a written warning means, when it matters before a dismissal and what options employees have regarding the personnel file and dismissal protection proceedings.
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Settlement agreement after dismissal in Germany: What employees should know
What a settlement agreement after dismissal means, how it differs from a termination agreement and what employees should check before signing.
Read article →Unemployment benefits
Severance Pay and Unemployment Benefits in Germany: When Can Benefits Be Suspended?
When can severance pay suspend unemployment benefits in Germany? Overview of notice periods, suspension, vacation compensation and health insurance.
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Settlement Agreement and Blocking Period: When Are Unemployment Benefits Suspended?
When can a settlement agreement lead to a blocking period for unemployment benefits in Germany? Overview of important reason, notice periods and severance pay.
Read article →Dismissal or separation agreement received?
If you have received a dismissal or an offer to end your employment relationship, an early employment-law assessment may be useful.