The automotive industry is in its worst crisis in decades. Under the motto “Future over Layoffs – Solidarity is our greatest strength,” tens of thousands of employees have protested nationwide. But what does this fight for jobs mean for you personally? What rights do you have in case of layoffs if your employer is cutting costs or closing entire sites? This guide shows you how to defend yourself and assert your claims.
Rights in Case of Layoffs: Information, Participation, and Co-Determination
In the case of significant operational changes, the works council has co-determination rights. The employer must inform the works council and negotiate an interest balance and social plan with them. As an individual employee, you also have rights: you must be informed about the planned measures, especially if you could be affected. You have the right to access your personnel file and to information about the selection criteria. If the employer draws up a social plan, the benefits must be clearly regulated there. If you feel disadvantaged, talk to your works council or a lawyer. Remember: the earlier you take action, the better your bargaining position.
Your rights in case of layoffs also include the possibility of negotiating a severance package – even without a social plan. Many employers offer a severance package in case of employer-initiated terminations to avoid costly and lengthy processes. But be careful: the amount is negotiable. Use the rule of thumb often cited as half a month’s salary per year of employment – however, this is only a starting point. A lawyer can assess what is realistic in your case.
How to Strengthen Your Bargaining Position Before a Termination Threatens
If you are affected by a layoff, don’t wait for the termination to come. Use the time to inform yourself and seek advice. Negotiations over a severance package are often successful if you are well prepared. First, clarify whether there is a social plan and what the severance regulations look like there. Also, check if your employment contract contains special termination periods or claims. The longer your length of service and the older you are, the higher your claim may be – but there is no automatic right to severance pay in case of employer-initiated termination. Only if the employer offers such a package or you negotiate a termination agreement do you have a claim. A labor law expert can help you choose the right strategy.
If you are unsure how to proceed, you can also turn to a litigation funder like RechtStark. In many cases, we cover the costs of legal action if there are sufficient prospects of success. This way, you can assert your interests without taking a financial risk. It’s important to act quickly because time is limited.
Employer-Initiated Termination: Your Options and Deadlines
If you are served with an employer-initiated termination, you have the option to file a protection against termination lawsuit. The deadline is three weeks after receiving the termination. You must absolutely meet this deadline, otherwise the lawsuit will be inadmissible. You can also file a protection against termination lawsuit if you are unsure whether the termination is justified. Often, this is about securing a higher severance package. In the case of mass layoffs, special rules apply – the employer must inform the Federal Employment Agency and meet certain deadlines. If you feel that the selection for redundancy was incorrect, there are good reasons to file a lawsuit. A lawyer will check for you whether the termination is valid. Remember: even if you feel that a termination is unavoidable, a protection against termination lawsuit can lead to a severance package. Read our article Protection Against Termination Lawsuit After Defeat: What Employees Can Learn from the Abou-Chaker Case to understand how important it is to meet deadlines.
In addition to the lawsuit, there is the option to sign a termination agreement. By doing so, you forgo a termination but often receive a severance package. However, you should never sign a termination agreement in a hurry. Check if you have any disadvantages regarding unemployment benefits or other claims. A lawyer can advise you here. Your rights in case of layoffs also apply here: you can negotiate until you receive an offer that is acceptable to you.
Social Plan and Severance Pay: What You Are Entitled to When a Layoff Occurs
A social plan is an agreement between the employer and works council that mitigates the disadvantages for employees in case of employer-initiated terminations. It often contains severance payments that are based on length of service, age, and salary. However, a social plan is not available in every company. If you are threatened with termination, actively ask if there is a social plan and what it contains for you. Even if you do not want to accept the social plan, you have the option to negotiate. Many employees underestimate their chances of achieving a higher severance package. In our article Why Many Severance Packages Are Too Low and What Good Lawyers Do Differently, you can learn more. Additionally, you can negotiate a severance package as part of a comparison before the labor court – often more than the social plan provides. The labor court often suggests ending the dispute with a severance package. For older employees, part-time work in retirement is also an option. You can find information about this in our article Mass Layoffs and Part-Time Work in Retirement: What Employees Need to Know Now.
If you work in a company with a social plan, you should not accept the amounts specified there as final. Often, better terms can be negotiated if you present your personal situation well. A lawyer can support you in this. We also help you secure the financial risks of a lawsuit – more on this in the next section.
Support in Case of Termination and Severance Pay: The Path to Your Rights
If you have received a termination or a layoff is threatened, quick action is needed. Do not hesitate to seek legal advice. A labor law expert can realistically assess your chances and protect you from mistakes. The costs of a lawyer can often be covered by legal expenses insurance. If you do not have insurance, a litigation funder like RechtStark is an option. We cover the legal costs if your lawsuit has sufficient prospects of success. This way, you can assert your claims without risking your savings.
Always remember: your rights in case of layoffs do not end with the termination. You have options, from negotiating a severance package to filing a protection against termination lawsuit. Do not be intimidated. Use the support of experts to secure your future.
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.