The severance poker becomes a pressing issue for many employees in economically difficult times. When companies like E.ON announce austerity programs or Galeria decides the fate of entire stores, workers suddenly face the question: how do I negotiate severance package terms to get the best possible outcome? This article shows you what matters and which strategies promise success.
Why Austerity Programs and Insolvencies Also Affect Your Severance
When companies cut costs, the workforce is often hit first. Austerity programs like E.ON’s or the developments at Galeria frequently lead to operational dismissals, termination agreements, or site closures. For employees, this means: you must prepare for negotiations where the employer appears to hold the stronger position. Yet that is only half the truth.
In economic crises, employers have a strong interest in reducing headcount quickly and cost-effectively. At the same time, they need an orderly solution to avoid disputes and reputational damage. This is precisely where your opportunity lies in the severance poker. Anyone who understands the mechanisms can secure a fair severance even in difficult times.
It is important to know: a severance payment is rarely a statutory entitlement. It usually arises through a termination agreement, a social plan, or a court settlement. The amount is negotiable — and that is exactly what the severance poker is about.
The Starting Position: What Employers Offer in Financial Crises — and What They Don’t
Many employers open negotiations with a standard offer. They often orient themselves around the rule of thumb of 0.5 gross monthly salaries per year of employment. However, this is not a statutory minimum entitlement but merely a reference point that serves as a starting point in practice. Especially during austerity programs, companies often try to start with lower amounts — hoping employees will accept the offer unchecked.
Yet not everything the employer offers is fair. In many cases, the grounds for dismissal are contestable — for instance, because the social selection was not carried out correctly or because the employer did not properly conduct the reconciliation of interests negotiations. Anyone who recognizes this can achieve significantly more in the severance poker.
At the same time, you should know: if the employer issues a dismissal, you have the option to challenge it. The action for protection against dismissal is the classic lever to achieve a higher severance. You can find more on the basics in our guide to the action for protection against dismissal.
Setting the Frame: Negotiation Strategies for a Higher Severance
The severance poker lives on your negotiation strategy. Anyone who simply accepts the offer leaves money on the table. Instead, you should negotiate actively — but with care. Here are some proven strategies:
- Demand a justification: Ask the employer why you specifically are affected. In operational dismissals, the social selection must be correct — errors are more common than you think.
- Use the notice period: The longer the period, the more time for negotiations. Employers are often willing to pay a higher severance if they receive immediate release from work duties in return.
- Negotiate additional benefits: Not only the severance counts. Release from duties, company car, further training, or a good reference letter are also negotiable.
- Show willingness to negotiate, but not desperation: Anyone who appears desperate gets less. Remain factual and confident.
Timing also plays an important role. If the employer is under time pressure — for example, because they need a settlement before a certain date — your chances of a better severance increase.
Action for Protection Against Dismissal as Leverage: Why You Must Observe the 3-Week Deadline
The strongest lever in the severance poker is the action for protection against dismissal. If you receive a dismissal, you have exactly three weeks to file a claim with the labor court. This deadline is set by law and cannot be extended. Anyone who misses it loses protection against dismissal and thus the most important negotiation basis.
The action for protection against dismissal forces the employer to justify the dismissal and engage with your arguments. In many cases, the parties then agree on a severance — usually higher than the original offer. The reason: the employer wants to avoid the risk of a lengthy legal dispute.
Important: The lawsuit does not have to mean you want to continue working. It often serves merely as a pressure tool to achieve a better severance. In practice, most actions for protection against dismissal end in a settlement — and this settlement is a matter of negotiation.
Social Plan and Severance in Mass Layoffs: Your Rights at a Glance
In mass layoffs — such as those occurring at Galeria or other large austerity programs — special rules apply. The employer must negotiate a reconciliation of interests and a social plan with the works council. The social plan stipulates what severance payments the affected employees receive. These severance payments are often higher than the statutory rule of thumb because they are intended to compensate for the disadvantage of job loss.
If you are affected by a mass layoff, you should check whether the social plan was correctly established. Errors in the social selection or in the calculation of the severance are not uncommon. Here, too, an action for protection against dismissal can help enforce a higher severance.
Another point: if the company is insolvent, special rules apply. In our article Severance in Company Insolvency you can learn what you need to know about entitlement and payout.
Professional Help: When a Specialist Lawyer for Employment Law and a Litigation Funder Make Sense
The severance poker is complex — especially in economically difficult times. A specialist lawyer for employment law can realistically assess your chances and conduct the negotiations. They know the usual severance amounts and understand which arguments resonate with employers.
However, a lawyer costs money. If you are not financially able to advance the legal fees, a litigation funder can help. A litigation funder covers the costs of the proceedings and receives a share of the awarded severance in case of success. This allows you to pursue an action for protection against dismissal even without your own budget.
RechtStark is such a litigation funder. We assess whether your case has prospects of success and assume the financing — not the legal representation. That is handled by an independent specialist lawyer for employment law. Further information on our services can be found on our severance overview page.
Conclusion: The Severance Poker Requires Preparation and Strategy
When companies like E.ON or Galeria cut costs, employees are often unsettled. Yet the severance poker is not a game of chance — it is a negotiation you can win with the right tools. The key points: do not rely on the first offer, examine the grounds for dismissal, use the action for protection against dismissal as leverage, and seek professional support when needed. With a clear strategy and realistic expectations, you can achieve a fair severance even in economically difficult times.
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.