When a conglomerate like Volkswagen announces a deep restructuring, many employees wonder: How does my Volkswagen dismissal protection hold up? The “Future Plan 2030” approved by the supervisory board means the consulting teams of Gleiss Lutz and Linklaters are advising the carmaker.
The dismissal protection at Volkswagen is governed by the Dismissal Protection Act, which also applies in large restructurings. This article explains what the restructuring means for you, what protective measures exist, and how you can best prepare for possible dismissals – from the social‑plan regulation to a dismissal‑protection lawsuit.
According to the latest news, the supervisory board has approved the “Future Plan 2030” of the VW management. Concrete details on staff reductions or plant closures are not yet public – but given such a deep restructuring, it is likely that jobs will be affected. In the past, similar plans at other conglomerates have often led to redundancy dismissals, sometimes with severance offers, sometimes without. This reinforces the importance of understanding your Volkswagen dismissal protection early on.
Volkswagen dismissal protection: Your rights in case of redundancy
When Volkswagen reduces staff, this usually happens via redundancy dismissals. Such dismissals are legally valid only if there is an urgent operational requirement that necessitates the termination. The Dismissal Protection Act (KSchG) protects employees who have been employed for more than six months, provided the business regularly employs more than ten workers – a condition that is certainly met at a large corporation like VW.
Importantly, a redundancy dismissal must be socially justified. The employer must prove that the dismissal is due to urgent operational needs – for example, a staff reduction based on economic or organizational grounds. Furthermore, a social selection must be carried out: the employer must dismiss those who are least protected – measured by age, length of service, maintenance obligations and disability. Errors in the social selection render the dismissal contestable.
If you want to safeguard your dismissal protection at Volkswagen, you should inform yourself early about the planned measures. In mass layoffs, an interest agreement is often concluded with the works council. This regulates which areas are to be cut and how many jobs will disappear. However, an interest agreement is not automatically linked to a social plan – these are two separate instruments.
Social plan and interest agreement: What employees can expect
In businesses with more than 20 employees, the works council can demand a social plan in the event of a planned operational change. A social plan aims to offset the financial disadvantages employees suffer from dismissal – typically through severance payments, qualification measures or transfer companies. At Volkswagen, a social plan is highly likely, as the corporation negotiates with the works council and IG Metall. However, the existence of a social plan does not automatically guarantee that every individual receives severance – the amount depends on the specific provisions.
As an employee, you should therefore inform yourself early about the contents of the social plan. Ask the works council whether concrete plans already exist. Check whether the social plan contains a severance formula based on length of service and age. Such formulas are common, but not prescribed by law. They are the result of negotiations between employer and works council – and can vary greatly from company to company.
If you are affected by a dismissal, check whether the social plan applies to you. Often there are cut‑off dates or exclusion criteria. Do not agree to sign a termination agreement before you know the exact terms.
Negotiating severance: Leverage in major restructurings
A severance payment is not an automatic entitlement. It arises either from a social plan, from an offer by the employer in the dismissal letter, or from a settlement agreement. Although § 1a of the Dismissal Protection Act provides for a severance payment, this only applies if the employer expressly offers it in the dismissal notice and waives the dismissal‑protection lawsuit. This is not the norm – usually severance is negotiated.
In major restructurings like Volkswagen’s, employees often have strong bargaining power: the employer wants to avoid lengthy proceedings and therefore frequently offers severance payments that exceed the legal minimum. For more on this, see our article Negotiating severance in a large corporation – there we explain what matters when negotiating with big companies.
Strong Volkswagen dismissal protection can give you leverage when discussing severance, especially if you are prepared to assert your rights.
Deadlines and dismissal‑protection lawsuits: How to react correctly
The most important deadline in employment law: after receiving a dismissal, you have exactly three weeks to file a dismissal‑protection lawsuit at the labor court. Missing this deadline makes the dismissal effective – even if it was substantively unjustified. This also applies to a redundancy dismissal within a restructuring.
Before you sue, you should check whether a dismissal‑protection lawsuit makes sense at all. If the social plan provides a decent severance, a lawsuit can still be worthwhile to obtain a higher payment. Many employees refrain from suing because they fear the costs. Here a litigation funder such as RechtStark can help: we assess whether we can cover the costs of the proceedings – you take on no financial risk. However, this is a decision you should discuss with a specialist employment lawyer.
The dismissal‑protection lawsuit is the key instrument to enforce your dismissal protection at Volkswagen. Even if you are seeking severance, you should never sign a settlement agreement without knowing the exact terms – in particular the severance amount, the release period, the offset against unemployment benefits and the blocking period. Please obtain independent advice on this matter.
Legal counsel: What the involvement of Gleiss Lutz and Linklaters means
The fact that Gleiss Lutz and Linklaters are advising Volkswagen is an important signal for you as an employee: the employer will be legally well prepared. However, this does not mean you are without recourse. On the contrary – in major restructurings there are often legal mistakes that work against the employer. An independent employment lawyer can represent your interests and examine whether the dismissal is socially justified.
RechtStark is not a law firm and does not represent you in court. We are a litigation funder that covers the costs of your dismissal‑protection lawsuit if your case has good prospects. This enables you to afford a lawyer even if you lack the financial means. However, the decision whether to sue rests with you alone – and the legal advice is provided by an independent lawyer of your choice.
Conclusion: How to secure your claims at Volkswagen
The “Future Plan 2030” from Volkswagen will likely lead to redundancy dismissals. Affected employees should act now: inform yourself about the social plan, consult the works council and observe all deadlines. A dismissal‑protection lawsuit must be filed within three weeks – do not delay.
Do not negotiate severance on your own. Seek professional support from an independent employment lawyer. Knowing your dismissal protection strengthens your position. If you are worried about the costs, we at RechtStark will check whether we can finance your proceedings. This way you ensure that you can enforce your claims – without financial risk. Stay informed, stay calm and do not let yourself be pressured.
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.