Due to recent economic turmoil the company that I work for might be looking at some layoffs. I've been looking in the internet but found sometimes contradictory statements.
.1. Is the employee entitled to any severance pay as per German law?
I see - from what I read - that it is "common" that the employee gets half salary for each year of work. However, if that is the case, why it is "common" to do so? (I doubt the companies are doing this from the goodness of their heart).
.2. Is the compensation tied to last salary or average salary?
The reason why I ask is because the company offers the option to work less hours for less money. However, this may work in employee disadvantage in case of a layoff (lower salary due to reduce work time). Is this the case?