If a plant like the GSK plant in Dresden is facing closure, many employees wonder whether they are entitled to a plant closure severance. The uncertainty is great: Will the dismissal become effective? Which deadlines apply? And how high can the severance be? This article provides an overview of the legal basics and shows what you as an employee should pay attention to now.
Dismissal due to plant closure: legal foundations
The closure of a plant or a business unit is a classic case for a operational dismissal. The employer must demonstrate that the entrepreneurial decision to close leads to a permanent loss of the job. If this proof is missing, the dismissal may be invalid.
Important: A plant closure alone does not automatically justify every dismissal. The employer must observe the so-called social selection: when several comparable employees exist, he may not arbitrarily pick individuals. He must select those who are least in need of protection – for example, taking into account length of service, age, maintenance obligations, and disability.
Furthermore, the employer must check whether continued employment at another location or under altered conditions is possible. Only if such an option is ruled out may the dismissal be issued. In practice, many dismissals fail on these formal requirements.
plant closure severance: what you need to know
Many employees assume that they are automatically entitled to a severance payment in case of plant closure. This is a misconception. Although the legislator has provided for a severance payment in § 1a of the Dismissal Protection Act, it applies only under certain conditions: the employer must explicitly offer in the termination letter to end the employment relationship in exchange for a severance payment. In this case, the severance amounts to 0.5 months’ salary per year of employment – but this is not automatic; it is an offer that the employee must accept.
In practice, the severance payment for plant closure is often regulated within a social plan. The social plan is negotiated between the employer and the works council and determines which benefits the affected employees receive. The amount of plant closure severance depends on factors such as length of service, age and family status. However, there is no legal entitlement to a specific sum – it is always the result of negotiations.
If you are pursuing a severance payment for plant closure, you should know that the amount can vary greatly. As a guideline, the formula from § 1a KSchG (0.5 months’ salary per year) applies, but many social plans provide for higher or lower amounts. Negotiating plant closure severance requires preparation and, if possible, the support of a lawyer specializing in employment law.
The 3-Week Deadline: Filing a Dismissal Protection Claim
The most important deadline in a dismissal is the 3-week period for filing a dismissal protection claim. It starts with the receipt of the termination notice, i.e., the moment you receive the letter. If you miss this deadline, the dismissal becomes automatically effective – even if it would otherwise be unjustified. A later claim will then no longer be admitted.
Exception: If you only learn of the dismissal later, for example because the letter was not delivered, the period begins only when you become aware of it. However, even then an absolute maximum period of six months applies. In case of doubt, you should always act promptly and file the claim before the deadline expires.
The claim must be filed with the labor court. You can file the claim without a lawyer, but legal representation greatly increases your chances. A litigation funder such as RechtStark can cover the costs of the proceedings and assess whether your claim has a prospect of success. RechtStark is not a law firm, but assumes the financial side so you can focus on the procedure.
Negotiating severance payment: how to increase your chances
If the employer offers a severance payment, this is merely the starting point for negotiations. You can and should try to increase the amount. Factors such as your length of service, your age, and your prospects on the labor market play a role. The company’s financial situation also influences bargaining power.
An important lever is the threat of a dismissal protection claim. If the employer fears that the dismissal will not hold up in court, he is more likely to agree to a higher severance payment. Conversely, you should remain realistic: in a genuine plant closure, the employer usually has strong arguments to justify the dismissal.
As with executives who negotiate a severance (see severance for executives), the same applies here: professional negotiation pays off. Do not settle for a quick offer, but examine all options. A lawyer specializing in employment law can help you determine an appropriate amount and conduct the negotiations.
Additional claims in case of plant closure: unused vacation, overtime and more
Besides the severance payment, you have further claims in case of plant closure that you should not forget. These include:
- Unused vacation: Accrued but untaken vacation must be paid out if it cannot be taken due to the termination of the employment relationship.
- Overtime: If you have worked overtime that has not been compensated, it must be remunerated.
- Reference: You are entitled to a qualified job reference that fairly presents your performance and conduct.
- Other benefits: Depending on the employment or collective agreement, further claims may exist, such as bonus payments or commissions.
You must actively assert these claims. Often they are settled lump‑sum in the termination agreement or social plan. Therefore, check carefully whether the severance payment covers all your outstanding claims or whether you should raise additional demands.
Conclusion: How to secure your claims
The closure of a plant like the GSK plant in Dresden is an existential turning point for the affected employees. Yet you are not without rights. With a timely dismissal protection claim, a solid understanding of your entitlements, and skillful negotiation, you can achieve an appropriate severance payment for plant closure.
Act quickly: the 3‑week deadline is the crucial date. Seek professional support, whether from a lawyer specializing in employment law or from a litigation funder such as RechtStark, which covers the costs of the proceedings. The better prepared you are, the greater your chances of a fair outcome.
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.