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The negotiation of
termination agreements
and severance pay

What matters when negotiating for executive personnel

As executive employee you are closer to the employer than many other employees. Negotiations on equal footing are therefore easier to establish and offer greater scope for action. Particularly in the case of contract termination, care is required not to take too much risk, but at the same time not to let opportunities slip by. When the employer gives notice, you initially have two options: Dismissal protection suit and termination agreement.

What you need to consider when filing for dismissal protection suit

When you are given notice as an executive employee, you can file a dismissal protection suit. The advantage: Not only can it save the employment, but also expedite the negotiations for severance pay or other benefits. Whether or not you receive severance pay and how you negotiate for it depends on your bargaining skills, or rather those of your legal counsel. Our experience shows, that employees who try to bring about a mutual consent with their employers, usually do not stand a chance. During the negotiations specialized labor law knowledge, experience and assertiveness are decisive. For this you must know that the law only grants compensation claims to employees in exceptional cases. It is therefore advisable to choose a strong legal partner. Since a dismissal protection suit must be filed within 3 weeks, before all your legal claims are irrevocably forfeited, we guarantee you an appointment with our firm within 48 hours of the termination.

Why a termination agreement might have disadvantages

When your employer offers you a termination agreement, it means that you must agree to the termination of your employment. The problem: You, as employee, do not enjoy the legal protection which you would otherwise receive when given notice. You must take responsibility for all consequences yourself. For instance, consequences dictated by social legislation: You can be banned from unemployment benefits for 12 weeks. Furthermore you can no longer file a dismissal protection suit – your best instrument of defense.

What’s more, clauses in your contract may become void. Your employer does not have to inform you about these consequences, but rather it is your own responsibility to acquaint yourself with possible consequences. We will gladly inform you extensively about your options and their specific consequences. 

What a termination agreement can do for you

Termination agreements provide exceptional flexibility with regard to the termination date and other modalities. This can make it interesting for you as an executive employee. Here you have the opportunity to become active in the creation process and, with the help of an experienced lawyer in the field of labor law, negotiate and stipulate for example, leave of absence with wage continuation and not least of all a freely negotiable amount of severance pay. Tip: Note the particularities of the social and fiscal legislations. For a profitable termination agreement extensive knowledge and strong negotiation skills are required. Therefore please take advantage of our consultancy service.

Whether termination or termination agreement: A consultation by a specialized labor law attorney makes sense in any case and gives you a summary of your options. Together we will work out a powerful strategy, so that you can enter negotiations strengthened. 

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