This summer, 3 friends reached out with concerns about possible layoffs... 😨
Different circles, different companies, but the same worry:
"My company isn't doing well financially, layoffs might be coming."
And the same questions:
"What does being laid-off look like?"
"What are my rights?"
"What can I get?"
Facing a layoff can be tough and scary, but remember, you're not alone in this.
And being prepared is key. 💪✨
Here's a comprehensive guide* for Germany to help you protect yourself before it happens! 🛡️
*Please note that the content of this newsletter is provided for guidance with no guarantee of completeness, accuracy or timeliness.
❌ Understand termination
There are 3 types of termination:
Person-related reason: extended absences due to illness or change in work capacity might lead to it. But first, there will be conversations about adapting or reintegrating you.
Conduct-related reasons: unpunctuality or unexcused absences can be a factor there. Usually you'll receive a warning letter (Abmahnung) to address these issues before further steps.
Operational reasons: changes in your company's financial or structural setup (like a decline in sales or a division shutdown) can result in the loss of your position. The company must explore any available alternative positions for you and follow a social selection process (Sozialauswahl).
📬 Receiving your termination notice
Here's what you need to know:
Delivery method: it should be handed to you on the day of termination or shortly after, either in person or by post.
Format: it should be a hard copy, printed on the company's letterhead - no emails, scans, or texts allowed!
Signature: look for a complete, hand-signed signature (initials or scanned signatures don’t count).
Content: it needs to include the termination date and a valid reason.
If these requirements aren't met, the termination might be void, giving you valid reasons to contest it.
📅 Check your notice period
You're entitled to your salary until the end of this period.
Typically, it's 2 weeks during probation and can be up to 6 months after (check your work contract).
Remember, during this time, you're still employed and receiving your salary as usual, even if you're relieved from work duties ("garden leave").
👔 Register as a job seeker
Make sure to register as a job seeker (Arbeitsuchend) with the Agentur für Arbeit at least 3 months before your last working day or within 3 days of receiving your termination notice - even if you contest the termination.
Avoid any delays, as late registration may lead to a 1-week exclusion from benefits!
You can easily register online, by phone or in person at your local employment office.
🤝 Negotiate your severance pay
In Germany, while there is no legal right to a severance pay (Abfindung), you can negotiate one - typically a lump sum payment - especially if facing a wrongful dismissal.
Amount usually starts at 0.5 month’s salary for each year of tenure, and can be pushed for more depending on your chances of success in court.
You can also negotiate for additional benefits like garden leave, a standout letter of reference or even job coaching.
🚨 Be mindful of the Aufhebungsvertrag
When it comes to severance packages, they often come with an Aufhebungsvertrag, a mutual termination agreement.
By signing it, you're not being fired, you're agreeing to leave.
Here's what you should know:
it might affect your unemployment benefits for the first 3 months (Sperrzeit).
once signed, it’s irreversible, and you lose the ability to take legal action against your employer.
Remember, your employer can't force you to sign an Aufhebungsvertrag.
So before you decide, consult a lawyer to negotiate the best possible deal.
⚖️ Seek legal advice
If you're considering contesting your dismissal, remember you have just 3 weeks from receiving the termination notice to file a lawsuit (Kündigungsschutzklage).
This could be a viable option if you've been with the company for more than 6 months and it has over 10 employees.
If successful, you could either return to your job or receive compensation for wrongful dismissal.
During the court process (it takes a few weeks), you can still negotiate with your company for a severance package.
Getting a Rechtsschutzversicherung (legal insurance) in advance can be worth it - explore this before it's too late, as there might be a waiting period of 3 to 6 months (Wartefrist).
If your company has a works council, they're a great resource for guidance, but remember, they don't replace the expertise of a labor law specialized lawyer.
🏢 Notify the Ausländerbehörde
If you're a non-EU residents, you must let the immigration office know about any changes in your job status to keep your visa valid, within 2 weeks of your dismissal.
Unfortunately, if you do not find a new job within a certain period of time, you may have to leave the country.
💰 Apply for unemployment benefits
If you've worked for at least 12 months in the past 30 months, you might be eligible for unemployment benefits (Arbeitslosengeld).
Register as Arbeitslos as early as 3 months before your last working day (or latest by your first day of unemployment) at the Agentur für Arbeit to apply for the unemployment benefits.
The amount and duration of support depend on your contribution period and salary - you can use online calculators to help you figure it out!
This also includes health insurance - so you’re in good hands.
🚀 Upskill with coaching or training
You can consider applying for a Bildungsgutschein or an AVGS voucher to cover your professional development costs, completely free for you!
This can help you upskilling, boosting your qualifications and increasing your chances of finding a new job - so seize those opportunities!
Losing your job can be tough and stressful, but remember, you're not alone in this!
So take good care of yourself during this time and don't hesitate to reach out for support from friends, family, and professionals!
Actions for today:
Save this newsletter and forward it to your friends & colleagues - sharing is caring!
Check out if a Rechtsschutzversicherung would be a viable option.
Manage expectations by calculating online your potential Arbeitslosengeld.
You got this! 💪
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