Severance Pay

Abfindung BAG Urteil

social plan severance age: Cut after 60 explained simply

The severance for the plaintiff, born 1946, was disputed from the outset. He had been employed for 43 years by the defendant. After announcement of mass layoffs, employer, IG Metall and works council agreed in 2006 on an interest agreement and a social plan. The social plan provided different severance amounts for employees up to 59 years and older employees. He consequently received a severance of €60,800, which he considered too low, and sued for the full maximum severance of €120,000.