Unemployment benefits if you resign

49 posts in this topic

I have a question regarding unemployment. I am getting laid off from my German Employer. They are offering me to terminate my own contract earlire (I have a 3 month notification period on my contract) which they will save some money and give me some more money. My question is that if I terminate myself from the company, am I still eligible to get unemployment benefits? Or do I loose the right to get unemployment benefit if I quit myself?

 

I have asked my HR Director and he said I don't get unemployment benefit in Germany if I quit my job. However, another friend of mine told me otherwise. I was wondering if anyone has any knowledge in this field.

 

Thanks!

0

Share this post


Link to post
Share on other sites

Sorry to hear about your situation. Have you browsed any existing forum threads on unemployment benefits? They won't all be relevant but I'm sure you'll find some useful information there. Good luck!

0

Share this post


Link to post
Share on other sites

Thanks for the kind words! Yes, I looked through the list, and found information stating that if one quit, he is entitled to 60% after 3 months, and if he is laid off, then the 60% starts immediately. However, since I have heard from my HR that I am not entitled, i would like to know from someone who knows for sure.

0

Share this post


Link to post
Share on other sites

On what grounds did your HR say you're not entitled? If you're an employee, the law says you are, unless you do something to prejudice that - like deliberately getting yourself sacked or taking a payoff to leave (in some, but not all, circumstances).

 

You have to tread very carefully here - if you play it right you might get a payoff from HR to accept being laid off, but you should not quit yourself, and would be wise to check the wording of any deal out very carefully - if necessary with the Bundesagentur für Arbeit.

 

Good luck!

 

Edit: This assumes you have met the minimum requirement for payments to unemployment insurance.

0

Share this post


Link to post
Share on other sites

The Bundesagentur will cut your benefits for up to three months if you terminate your contract yourself. Have yourself fired, sue your employer and settle in court for a "Abfindung" (that has been agreed on earlier). The Bundesagentur will not (usually) question such a court settlement.

0

Share this post


Link to post
Share on other sites

I thought layoffs in Germany were based on social status in the company. If you have children and some seniority in the company, you can actually challenge your layoff if there are others who should go first. Don't let them take advantage of the fact that you come from a country where who gets laid off is usually at the discretion of the management. This is where legal insurance comes in handy. Of course, if your job sucks, you are low on the totem pole and don't have kids, then you might have no chance but to accept.

0

Share this post


Link to post
Share on other sites

Thanks for all the advices.

 

MY HR did not say why I am not entitled, he just stated. And I did not do something weird.

 

I am married without kids, and I don't have a senior title. But I do report directly to C level for strategic advisory. And I am "sent from the parent company" but under the payroll of the German local operation. I have only been with the company for 1.25 years though. Now laid off from the local operation.

 

Had another meeting with my boss and HR, they want to end on "friendly" terms so they will give me 3 months + 1 month + 25% bonus. They will write me a recommendation letter for my next employment, and I can use company facility, my company car, and phone until end of May.

 

I consulted with my legal advisor, he recommends to request for 1 year of compensation.

0

Share this post


Link to post
Share on other sites

Yeah you can definitely get longer compensation, trust your lawyer.

 

I got laid off last year from a job just under the 6 month 'probezeit' but they decided to do some shady stuff like making me sign off on vacation notices after being told to not come to work so they would not have to pay me off. Needless to say I never signed the notices, got a lawyer, and got a nice check in the mail about a month later.

 

The only thing I would suggest is that you play your cards carefully. If they are suggesting that they want a 'friendly' termination, they might be hiding something you don't know. And it has to do with money. Money that would be going to you.

0

Share this post


Link to post
Share on other sites

I´m not a legal specialist, alas I stoutly doubt that you´re entitled to a 1 year severance package.

They firm can legally shutter the business tomorrow and all employees will get nadda.

It has happened already at many companies all across Germany. Of course you can sue the company, the question is how long can you take it.

To speak from experience, your lawyer will be the only person who will gain from a follow-up litigation. Don´t blindly believe a lawyer unless you´ve legal insurance which will cover any litigation cost. And please brace for impact because such litigation takes months/years in Germany.

The lawyer will squeeze a lot of money out of the case to no avail. Don´t dream about a big severance bonanza - it is only paid to top managers, which has more to do with their special legal status in companies. So forget about all the bonanza news you here on the news - not for Joe Sixpacks.

 

A 4 month remuneration + 1/4 bonus as severance package is a very good deal in Germany. It is a damn good deal!

If were you I will just haggle with them to make it a 5 month + bonus deal. Ask for a 6-month deal and maybe they´ll give you 5.

The whole economy is in a dire recession and Arbeitsgerichte will acknowledge the current economic situation as "außergewöhnlich".

 

OP, If I were you I´ll take the deal and search for another job. You should file for unemployment benefit immediately as you get the termination letter. Whether you get employment benefit immediately or after the 4 months is at the discretionary decision of the clerk. You´ll surely get unemployement benefit even if you did something immature to get fired. The open question is whether you are entitled immediately or after the 4 months.

0

Share this post


Link to post
Share on other sites

Hi,

 

I am in a similar situation but haven't really found an answer that helps me. My husband has been offered a better job in the south of Germany and we will be moving in the next few months. I told my company today that i would like to resign as I have a longer notice period than my husband, btu now I am wondering whether it would be better to ask them to fire me, which i don't see would be a problem for them, in order for me to receive unemployment benefits for a while whilst looking for a job.

 

Or is it possible to get unemployment benefits even when you resing, if perhaps I explain that we have to move? I was planning to go to the Arbeitsamt directly, but don't want to put my foot in it and ruin any chance.

 

Any help would be appreciated. Thanks

0

Share this post


Link to post
Share on other sites

Hi Amal,

 

1. In general, if you quit, you get nothing for the following 3 months.

2. Asking your boss to fire you is an option, but I am not sure about the bureaucracy your company has to deal with by firing you.

 

Check with your HR before approaching Arbeitsamt.

 

All the best.

 

Thanks

Samy

0

Share this post


Link to post
Share on other sites

Not to forget that you do not get any unemployment benefits but you also have to pay your own health insurance

0

Share this post


Link to post
Share on other sites

Handing in your resignation because you intend to move to another place in order to (re)join your spouse should make you exempt from the blocking period. See Sperrzeit – Ausnahmen:

 

 

Ein wichtiger Grund kann unter Umständen auch vorliegen,

wenn Sie zur Begründung oder Wiederherstellung der ehelichen Gemeinschaft zu Ihrem Ehegatten ziehen wollen ...

 

Since you already gave your notice, I think you should contact your Arbeitsagentur now, see short info in English.

0

Share this post


Link to post
Share on other sites

Hi all,

 

thanks for the added info. I have asked the MD of my company and they are checking whether it will be a problem for them, so that I can call this afternoon to get it on the record with the arbeitsamt. I know you need to register within three days but apparently you can call for an appointment and this classes as you acting within the appropriate time. I am hoping so. I didn't realise that I might be excempt from this blocking period though, so if I don't hear back from my boss by 5pm I may call the amt and just be honest and hopefully they will let me off.

 

I will be covered by my husbands health insurance so I should be ok for that but thanks though.

0

Share this post


Link to post
Share on other sites

You must have worked and paid unemployment insurance for 24 months in order to get the year of unemployment paid. And as stated already, if you resign, they "can" (some will waive it, it is a case by case basis, not automatic, but yes 99% of the time) withhold benefits for the first 3 months, then you would only get 9 months (not 12) - again, this is only if you have paid into the system for 24 months.

 

For Example: If you only paid in for say 12 months, you would only be entitled to 6 months of unemployment minus the 3 months that they "may" withhold benefits leaving you only 3 months of payments. Hope this helps

 

link to arbeitsamt table

0

Share this post


Link to post
Share on other sites

Actually I doubt your company would "fire" you on your request, what they might propose is a Aufhebungsvertrag (i.e. consentual termination of the work contract), but that is certain to cause problems with the blocking period and can also look dodgy on your CV. Accepting a communal residence with your spouse as a valid reason (wichtiger Grund) for resignation and waiving the blocking period is standard.

1

Share this post


Link to post
Share on other sites

RainyDays's points are valid. But the problem is that the Amt is not often rational expecially when it comes to benefits.

0

Share this post


Link to post
Share on other sites

I know that my company have done it before for another person but I am not sure of the circumstances and whether or not it will be a problem. But one thing, I didn't realise that the 3 months block is taken off the amount of time you are entitled to claim... Stupid me just thought that it meant I would have to wait but then would still get 6 months (I have only paid in for 18 months). Actually that leads me to another question for 4 months I was working in a 400€ mini-job when I first arrived. I didn't pay in to the system but I know that my company did... do those months class as the paying-in months?

 

RainyDays quick question... maybe I am stupid... but why would the aufhebundsvetrag come up on my CV? It will just show I worked until such and such a date and when interviewed for future jobs I will explain that I quit due to husband getting better job and him being the bread-winner I had to follow... or am I missing something?

 

I think I am planning on just telling them I will resign as I don't want any hassle if they ask how we managed to move so quickly to another town so soon after being "fired"

0

Share this post


Link to post
Share on other sites

I would also like to add another question or two to the mix, as I will most likely be going through this situation next year.

 

The possibility of wavering the 3 month block due to moving with your spouse - would that extend to living partners or only legally married couples? Also, just how much is health insurance a month roughly if you have to pay for it yourself directly? I am trying to work out how much savings i need in order to cope with a potential 3 months of no income.

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now