News of UniCredit’s planned takeover of Commerzbank has triggered uncertainty among many employees. When a major corporation acquires another, workers often fear for their jobs. A severance pay takeover package can provide crucial financial security in such situations. But how much can you expect, and what rights do you have as an employee? This guide covers the key aspects — from operational dismissals and settlement agreements to negotiation strategies.
Takeover as a Trigger: Why Commerzbank Employees Fear for Their Jobs
The announcement of UniCredit’s entry into Commerzbank has caused considerable unease among the workforce. In large corporate takeovers, restructuring is common. Duplicate functions are merged, locations reviewed, and processes streamlined. In the worst case, this can lead to job cuts — even if no concrete announcements have been made yet.
Experience shows that anxiety about job loss grows during such phases. Many employees wonder whether they might be affected and what rights they have. The good news: in Germany, employees are relatively well protected by the Protection Against Dismissal Act — provided the employment relationship has lasted more than six months and the operation employs more than ten people. However, this protection does not apply automatically; it must be asserted through an unfair dismissal claim.
If you are threatened with dismissal, you should know your options early on. This includes the possibility of negotiating a severance package — whether as part of a settlement agreement or as the outcome of a court settlement. The following sections explain how to proceed.
Mass Layoffs Looming? What Matters in Operational Dismissals
In a takeover like that of Commerzbank and UniCredit, operational dismissal is the most common scenario when jobs are cut. An operational dismissal is socially justified only if urgent operational requirements prevent continued employment. This may be the case when departments are merged or locations closed.
However, employers must consider social criteria when selecting employees for dismissal — the so-called social selection. Age, length of service, maintenance obligations, and severe disability all play a role. Those who are particularly vulnerable have a better chance of not being dismissed. Additionally, the works council and, where applicable, the group works council must be consulted.
If you receive a dismissal notice, you have only three weeks to file an unfair dismissal claim with the labor court. This deadline is critical — miss it, and the dismissal is generally effective even if it was unfounded. You should therefore seek legal advice from a specialist employment lawyer without delay. Anyone unsure how to proceed will find helpful information in our article Rights During Job Cuts.
Settlement Agreements: Opportunities and Risks in the Merger Wave
During mergers and acquisitions, employers often turn to settlement agreements. The employment relationship is terminated by mutual consent — usually in exchange for a severance payment. For many employees, this may sound tempting, as the severance can be a substantial sum. Yet a settlement agreement carries significant drawbacks.
The most important point: by signing, you waive your protection against dismissal. This means you can no longer challenge the termination, even if there were no objective grounds for it. You also risk a blocking period for unemployment benefits if you enter into a settlement agreement without good cause. The Employment Agency then assumes you brought about your own unemployment.
Before signing a settlement agreement, you should therefore carefully assess whether the offer is fair. A severance package covering only a few months’ salary is often insufficient if you have been with the company for a long time. In many cases, it is better to wait for the dismissal and file an unfair dismissal claim — because in court, you can often negotiate a higher severance. More on how to proceed in insolvency situations can be found in our article Severance Pay in Insolvency.
Severance Pay Takeover: How to Negotiate Successfully
In Germany, severance pay is not a statutory entitlement — unless the employer expressly offers it, for example under Section 1a of the Protection Against Dismissal Act. In most cases, severance is achieved through negotiations or a court settlement. The so-called “golden handshake” is therefore a matter of negotiation.
If you are aiming for a severance pay takeover settlement, thorough preparation is essential. Factors such as length of service, age, and the prospects of an unfair dismissal claim play a major role. The longer you have been with the company and the older you are, the higher the severance tends to be. A common rule of thumb is half a gross monthly salary per year of employment — more is often possible if the employer wants a quick resolution.
Important: severance is not a gift, but consideration for the loss of your job. You should not accept an offer hastily, but strengthen your position. This includes knowing your rights and, if necessary, threatening an unfair dismissal claim. Skilled negotiation can often increase the severance significantly. Negotiation tips are also available in our article Why an Unfair Dismissal Claim Can Fail.
Legal Protection: What to Do When Dismissal Arrives
If the dismissal letter actually lands in your mailbox, swift action is required. The deadline for filing an unfair dismissal claim is three weeks from receipt of the notice. Miss this deadline, and the dismissal is generally effective — regardless of whether it was lawful.
The first step should always be to consult a specialist lawyer for employment law. Only a lawyer can realistically assess the chances of success and initiate the right steps. When you file an unfair dismissal claim, the initial aim is to have the dismissal declared invalid. In many cases, however, the proceedings end in a settlement: the employer pays a severance package, and the employment relationship ends.
Before litigation, you should also consider the potential severance amount. In court, it depends heavily on the circumstances of the individual case — for example, how strong your position is and whether the employer has an interest in a quick settlement. Good preparation and a realistic assessment are therefore crucial. Anyone unsure whether a claim is worthwhile can also explore financing options for the proceedings — for instance, through a litigation funder.
RechtStark’s Role: Support in Asserting Your Rights
RechtStark is a litigation funder that helps employees enforce their rights in labor court proceedings — without bearing the financial risk themselves. We cover the costs of the unfair dismissal claim and the entire proceedings if the prospects of success are good. In return, we receive a share of the severance package or judgment awarded in the event of success. This allows you to pursue your rights without taking a financial gamble.
It is important to understand: RechtStark is not a law firm and does not provide legal representation. We work with independent specialist lawyers for employment law who represent your interests in court. Our role is to assess and assume the financing, so you can focus entirely on the outcome of the proceedings.
If you are threatened with dismissal — whether due to the takeover at Commerzbank or at another company — you can contact us. We will assess whether we can finance your proceedings. This gives you access to high-quality legal representation without having to advance costs yourself. Your rights matter — don’t let them lapse unused.
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.