Employment and pensions
Planning severance payments realistically – what helps companies do this
Published on 26th Apr 2023
Severance payments are commonplace in the case of termination of employment contracts by mutual agreement. But what are the right legal steps to take and, above all, what sums should employers expect to pay their employees?
When companies want to part with an employee, they often consider the possibility of an amicable termination through a cancellation agreement instead of a dismissal. In many cases, a severance payment is made as compensation for the loss of the job. But what amount of severance offer is likely to make the employee agree to a termination so that a dismissal protection court case can be avoided?
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