Redundancy at the workplace

Theoretical question - but I am very suspcious that my department is going to be axed in the near future. Should this happen I may be offered another position, or redundancy. As I've only been working here for a year I'm not sure if the redundancy package will be any good. Can anyone shed any light - is there such a thing as a statutory minimum payment? any info much appreciated.

And of course that should read redundancy...

...

What can I say, I can't spell!

Well, normally you should have at least 3 months severance package or notice period.

There is a minimum payment, based on length of service, but I don't know precisely how much. Being Germany there are laws about everything, including conditions that the company has to comply with to make people redundant.

What gives you this suspicion? Are you working for a big company or a small one? Does it have a Betriebsrat (workers council)? Do you have legal insurance that covers work related disputes? Do you have a local contract?

I have been through this once myself about 2 years ago. Some of the redundancy package will be dependant on the contract you signed. One option is to be "Freigestellt" where you are still on the payroll but are released from work. There are taxation savings with this option. If you have only been here one year and the company "brought" you here, then negotiate extra months particulary to get you over the Christmas period. This will get you time to look around. Also make sure you let the Arbeitsamt know (as soon as you know) as you need to get your initial application in before you stop working. My initial offer from my ex-company was 4 months freigestellt, after being there for 18 months. I managed to increase this a bit through negotiation. This increased the amount of time at the company on my written reference too (Zeugnis). If you get to the point of needing to get a Zeugnis, PM me and I can send you something which will help make sure they use the best wording. This is very important if you want to work again in Germany.

I am not aware of the statutory minimums, if there are any. Hopefully someone else here can help out there.

Good luck, and hopefully you won't need to use this info!!

Yes - Get legal insurance BEFORE the company makes any approaches towards you, otherwise it will be too late to have cover (I speak from experience)

Also, be careful about using lawyers for negotiating the package. After speaking to others who were in the mass redundancy with me and comparing experiences with and without lawyers it was clearly better and actually less stressful to not use one.

Thanks for the info.

I've been given a heads-up that something is going to happen -though not officially. They did bring here, thouhg I do have a local contract, and they are a big German firm. I'm not worried to be honest. More wondering if it would be worth my while to take the redundancy and run, or take up another position within the company. If the pay off was large enough it would finance some travel...guess I will just have to sit tight and see what happens!

I have not been through it, but have unfortunately had to put others through it.

If you are offered another position within the company, they cannot offer you less pay, benefits or seniority. They must offer you a comparable position unless you agree in writing to the change to a lower position.

The statutory kundigungsfrist is 3 months. Additional time may be part of your Betriebsvereinbarung (Working agreement - check with your Betriebsrat). The severance is always agreed in advance in your contract, but it does not usually include things like weinachtsgeld, urlaubsgeld or bonus. If you get any of these, be sure they are also part of your severance.

If you want to sue them, you need to register you complaint with the Betriebsrat as soon as you are informed you are being let go. Before you are let go, the Betriebsrat will already have been informed. Go to the Arbeitsamt that day and register - also talk to a lawyer that day or the next.

There is little that can be done, but most companies prefer to settle than go to court - it's usually cheaper. Your lawyer will tell you how much to ask for.

Hello!

I have been through this...its called "Abfindung"

You are agreeing to dissolve your current contract.

1) Get Arbeitrechtschutz

2) Good "Arbeitsrecht" lawyer is important

3) Minimum - is your "Kundigungsfrist" - max can be alot of money! Definitely wait until they offer a package...they can be generous...

Thanks for the advice.
Another question; what does Arbeitsrechtschutz provide?

Rechtschutzversicherung has a waiting period of 3 months. This has to be done before you get official notice of anything!

Good point Elfenstar

@Rouge - it means (check the policy) that if they lay you off - your lawyer costs will be paid for...