The announced job cuts at 1&1 Versatel and IONOS raise a crucial question for many employees: what rights do you have in a dismissal, especially when it comes to redundancy selection and severance pay. A company-wide workforce reduction is often a shock for affected staff, but there are clear legal rules in place to protect employees. This article guides you through the steps you need to take now to secure your claims and achieve the highest possible severance pay.
Job Cuts at 1&1 Versatel and IONOS: Overview and Impacts
The parent company United Internet has announced a comprehensive job cut at its subsidiaries 1&1 Versatel and IONOS. Specific numbers or timelines are not publicly known, but such restructurings typically affect several hundred jobs. For affected employees, this means preparing for dismissals, often alongside questions about whether a severance pay will be paid and how much it will amount to.
Important: A job cut alone does not automatically justify every dismissal. The employer must prove that the dismissal is necessary due to urgent operational requirements and that the redundancy selection was carried out properly. This is where mistakes often occur, making a dismissal challengeable – and this opens up room for negotiation to secure a better severance pay.
Redundancy Selection and Severance Pay: Who is Affected and How It Works
Redundancy selection and severance pay are closely linked: only if the redundancy selection is flawed do your chances of a higher severance pay increase. In a dismissal, the employer must select employees from among all comparable staff who are the least in need of protection. Four criteria are relevant here: length of service, age, dependents, and disability. The employer may only disregard these criteria if there are compelling operational interests, such as specialized knowledge or high performers, that take precedence.
Mistakes in redundancy selection are common – for example, if the employer incorrectly assesses the comparability of jobs or fails to explain the weighting of criteria. If the selection is challenged in court, the dismissal may be invalid. In practice, this often leads to a settlement where the employer pays a severance pay to end the proceedings. This is why it is worth carefully reviewing the redundancy selection – ideally with the support of an employment lawyer. For more details on typical mistakes and your rights, see our article Redundancy Selection in a Dismissal.
Severance Pay Entitlements: What You’re Owed
As a general rule: without an explicit agreement or an offer from the employer, there is no legal entitlement to severance pay. The well-known rule of thumb “0.5 gross monthly salary per year of employment” is only a guideline, often used as a basis for negotiation – but not a guarantee. If the employer offers severance pay under § 1a KSchG in the dismissal letter, you will receive exactly this half-monthly pay per year, but you will then have to forgo a dismissal protection claim. However, this offer is the exception; in most cases, severance pay is only negotiated in a settlement before the labor court.
In a job cut like at 1&1 Versatel and IONOS, there is often a mutual agreement and a social plan. The social plan specifies the severance pay employees will receive – often tiered by length of service and age. However, these benefits are not legally prescribed but result from negotiations between the employer and works council. If you are unsure whether your severance pay is reasonable, you can file a dismissal protection claim to put pressure on the employer. For more on this, see our article Severance Pay in Plant Closures, which also highlights similar pitfalls.
Dismissal Protection Claim: Deadlines and Chances
The most important deadline: you have exactly three weeks from receiving the dismissal notice to file a dismissal protection claim with the labor court. Miss this deadline, and the dismissal becomes automatically effective – even if it is legally unfounded. The claim does not need to be well-founded; a formal application stating that the dismissal is invalid is sufficient. The chances of success depend heavily on the dismissal’s vulnerability to challenge: flawed redundancy selection, failure to hear the works council, or insufficient explanation of operational reasons are typical points of attack.
Even if the dismissal is ultimately valid, the court may dissolve the employment relationship in exchange for a severance pay – this is requested by either the employee or the employer. In practice, most dismissal protection proceedings end in a settlement where a severance pay is agreed. The amount depends on the circumstances of the individual case, often based on length of service and the chances of success. Filing a claim significantly strengthens your negotiating position. For more on the termination request and severance pay, see our article Termination Request and Severance Pay.
Negotiation Tips: How to Increase Your Severance Pay
A dismissal protection claim is the most powerful tool to achieve a higher severance pay. Employers know that court proceedings take time and money – and are therefore often willing to settle. To strengthen your position, keep the following points in mind: have the dismissal immediately reviewed by an employment lawyer, gather all relevant documents (employment contract, salary statements, correspondence), and document any mistakes made by the employer. The question of whether the works council was properly involved also plays a role.
When negotiating redundancy selection and severance pay, do not accept the first offer immediately. Request an explanation of the redundancy selection and check if other comparable employees were treated differently. A good lawyer knows typical settlement amounts and can realistically assess your claims. Also consider tax aspects: severance pay is subject to the one-fifth rule, which mitigates the tax burden. Find out early how a severance pay affects your unemployment benefit – in most cases, a high severance pay does not lead to a waiting period, as our article Unemployment Benefit and Ban in Case of Severance Pay shows.
Fazit: Act Now
The job cuts at 1&1 Versatel and IONOS are a turning point for many employees. But you are not powerless: carefully review your dismissal, respect the three-week claim deadline, and seek advice from an employment lawyer. A dismissal protection claim is often the key to a significantly higher severance pay – especially if the redundancy selection was flawed. Negotiate confidently and do not let yourself be pressured into accepting a low offer. With the right strategy, you can not only secure a fair severance pay but also ensure a smooth transition to a new career.
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.