Many newcomers to Berlin are unfamiliar with German labour law, leaving them vulnerable to exploitation by employers. For our new series ‘So You’ve Been Fired’, we spoke with Frank Broer from AbfindungsHero about how to protect your rights during severance negotiations.
Is there a particular scenario, that come across repeatedly, which would be improved with the help of a termination lawyer?
We constantly see the following situation play out: an employee – often not a native German speaker – gets fired with little or no severance and assumes that’s normal because they’re “new”. Many walk away too quickly, especially younger employees and those unfamiliar with how severance negotiations work in Germany.
A lawyer can step in here, level the playing field and usually secure a much better deal. Very often, even seemingly fair dismissals are at least shaky under German law, and employees would have had a good chance for severance pay. Maybe the employer skipped formal steps, ignored social factors or didn’t consider other options for the employee. Those weaknesses create leverage to negotiate a better deal – or to keep you on payroll longer (often on paid garden leave) while you land your next role. For Blue Card holders, that extra time can matter more than a one-off payout. But without legal pressure, most employers won’t budge here.
What are the immediate steps an employee should take after receiving a termination notice?
The first rule is to stay calm. Don’t sign anything on the spot, especially not a settlement or waiver your employer waves across the table. Take the paperwork home and breathe.
Then take the paperwork home and check it thoroughly. Is it even a valid termination letter: is it signed on paper, delivered to you properly, and coming from someone who’s actually authorised to fire you? Is there “proof” for all this from your employer? Talk to an expert if you have doubts.
Get up to speed on your rights and options. You may want to start on the AbfindungsHero website. It is advisable to register as “seeking work” with the Agentur für Arbeit if you want to avoid losing unemployment benefits.
If your company has a works council, talk to them – they may already have objected to the termination, which can strengthen your case. See a lawyer or a union or nonprofit advisor. You have exactly three weeks to file a termination claim if you want to protect your severance rights.
Also, you may want to ask for a reference letter (“Arbeitszeugnis”) if you need it for your next job. Plan your next move. If you can take time off, start looking for new roles and prepping for interviews. More on this in our guide to the most important things to do upon termination of an employment contract.
What are common clauses in contracts that employers use to avoid paying severance?
The “classic” way for employers to avoid paying severance in Germany is a fixed-term contract (“befristeter Vertrag”). In Germany, a one-year job “ending automatically” is perfectly legal – and the employee walks away empty-handed, even if the company continues with a new employee. However, the fixed-term itself must be valid; otherwise, the job counts as a normal, permanent contract, with full protections against unfair dismissal. Courts review these clauses closely – and they often catch employers playing fast and loose with these types of contracts.Another way employers get around paying servence is termination agreements. These often come with a friendly smile and a ruthless “general release clause” – the line that says “all claims from the employment and its termination are settled”. Translation: no severance for you, unless it’s carved out explicitly. Courts can review these, too, but if drafted properly, they’re highly effective. Some employees only realise later that they signed away their severance rights for nothing.And finally, there is always the sly limitation clause (“Ausschluss-/Verfallklausel”). It usually hides in the fine print: “All claims must be made in writing within three months or they expire.” Which means if you wait too long to demand severance or other claims like unpaid overtime, poof, gone. However, the legal deadline upon termination is even shorter. Miss that deadline, and your right to fight the dismissal disappears – no matter how unfair it was.
What is Abfindungshero? Tell us about how this all came about.
AbfindungsHero helps employees deal with job-related legal problems – especially around termination and severance. On abfindungshero.de, you’ll find plain-English guides, free calculators for severance and tax as well as templates that take the guesswork out of paperwork. Our network lawyers are vetted specialists, focused on termination cases and are fluent in English – so you get real answers, fast. And if all goes well, a fair severance, too. We started AbfindungsHero after seeing how confusing and intimidating German labour law can be, especially the strange rituals of the local “severance bazaar”. Our idea was simple: put employees first with clear tools and real legal support, while giving lawyers a better way to reach the people who need them most. Everyone wins (except maybe the employer).
Right now, we’re relaunching our site, expanding our partner network, and testing “no-win-no-fee” arrangements with some of our partner lawyers. More to come soon.
What has been your favourite success story so far?
We have quite a lot of similar cases, but the following two are good examples of what we are dealing with:
A product manager from the Americas had been working in Berlin for just over two years when her employer suddenly let her go. The severance offer on the table was barely one month’s salary. She didn’t know much about German labour law and almost signed. However, our partner lawyer, Sven Jacob, spotted several formal mistakes in the dismissal letter and challenged it in court. The case ended with a settlement: six months’ salary as severance, plus the time until the court hearing fully paid on garden leave.
A software developer from outside the EU, living in Berlin with a Blue Card, had been working here for three years. One day, his employer claimed they were shutting down his department and pushed him to sign a termination agreement – offering €5,000 in severance pay. That’s when our partner lawyer, Joschka Gommers, stepped in. He uncovered several inconsistencies in the supposed “department closure”. The company quickly changed its strategy and fired the developer on the spot, alleging “working time fraud” The stakes couldn’t have been higher: his residence status, his livelihood, his future in Germany. But the employer’s move backfired. The dismissal was full of procedural flaws and, more importantly, it became clear that the developer had done nothing wrong. After a chamber hearing at the Berlin Labour Court, the developer walked away with a severance of €25,000. And the best part: he had already lined up a new job in the meantime – meaning the payout wasn’t just survival money, it was the cherry on top.
Do you have any burning question about German work law? Contracts that look shady, bosses that sound sketchy or acronyms that make no sense? Send them our way! We’ll put them to the experts and translate the answers into plain English. Email [email protected]
