severance insolvency proceedings: Himolla in Taufkirchen near Munich filed for insolvency proceedings in self‑administration (a protective shield procedure) in August 2026, raising questions about severance packages for affected staff. As part of the restructuring, the final assembly line at the headquarters is to be closed – up to 240 of the roughly 850 employees there face termination.
severance insolvency proceedings: key points for Himolla workers
Himolla has initiated a protective shield procedure under § 270d InsO – a form of insolvency in self‑administration where management remains in control under the supervision of a trustee. The main impact is on the final assembly at the Taufkirchen site: up to 240 jobs may be cut. According to the works council chair Claudia Klobensteiner, notices are expected in September with effect at year‑end. Details of the further restructuring plan have not been made public, so the following sections outline the general legal mechanisms that apply in such insolvency cases.
An insolvency does not lift dismissal protection – the Dismissal Protection Act continues to apply, as does the three‑week deadline for filing a dismissal protection lawsuit. What does change is the notice period itself: under § 113 InsO the insolvency administrator (or, in self‑administration, the management) may terminate employment with a notice of up to three months to the end of a month, irrespective of any longer contractual or collective‑agreement period. Thus employees who enjoy a longer notice period in their contract must expect it to be reduced to three months in the insolvency. Being informed about severance insolvency proceedings allows employees to better evaluate any offered severance package.
A central difference to a regular mass layoff concerns the severance payment. If management and works council agree on a social plan, the insolvency law imposes a statutory ceiling. According to § 123 InsO the total volume of the social plan may not exceed 2.5 times the monthly wages of all affected employees. Consequently the individual severance in insolvency is usually lower than in a financially healthy company because the available social‑plan fund is capped by law. Knowing the details of severance insolvency proceedings is essential when deciding whether to pursue a dismissal protection claim.
Independent of any severance, there is a safety net that relieves many employees in an insolvency: the insolvency benefit. It covers wages earned during the three months preceding the opening of the insolvency proceedings that have not yet been paid. Applications are submitted to the Federal Employment Agency, irrespective of what ultimately happens with a possible severance.
Even if a severance in insolvency is only registered as an insolvency claim and paid out only proportionally, filing a dismissal protection lawsuit can still be useful – for instance if the social selection was flawed or the works council was not properly consulted. A successful court decision may lead to a higher severance through a settlement or may overturn the dismissal altogether. Because such a lawsuit entails costs and a certain risk, it is advisable to first obtain a realistic assessment of the chances of success – ideally from an independent specialist lawyer for employment law.
To protect their rights, employees should consider the following steps:
- Check the exact date of receipt of the dismissal notice – the three‑week period for a dismissal protection lawsuit starts at that moment, regardless of the insolvency proceedings.
- Clarify early on whether and to what extent a social plan is being negotiated, and ask for an explanation of the calculation basis.
- Register any outstanding wage and severance claims in due form and in time with the insolvency administrator or trustee for inclusion in the insolvency schedule.
- If necessary, apply promptly for insolvency benefit at the Federal Employment Agency.
- Have the dismissal and the social selection reviewed by a specialist lawyer for employment law before accepting a notice or a severance offer.
- Inform yourself about litigation funding if you do not wish to bear the cost risk of a lawsuit alone.
The Himolla case illustrates why an insolvency changes the starting point for affected employees: shorter notice periods, a capped social‑plan fund and severance claims that often can only be registered as insolvency claims and paid out only proportionally. Those who know their rights, observe deadlines and seek early advice can still obtain the best possible outcome from the situation.
Note: This article is for general information purposes only and does not replace individual legal advice. For a free initial assessment of whether litigation funding may be an option for your case, you can contact RechtStark.