Severance Automotive Industry: Review Termination Agreement for 399 €
How to obtain a fair severance at Daimler, BMW, VW, Porsche & Co. (with Severance Calculator)
- At Daimler/Mercedes-Benz, BMW, Porsche, Audi, VW, and Opel, as well as at suppliers like Bosch, ZF, and Continental, etc., severance payments typically range between 0.5 and 1.5 monthly salaries per year of employment.
- In individual cases, significantly higher sums can often be achieved through professional negotiation.
The automotive industry in Germany is facing major challenges due to the transformation to electromobility. Many employees at Daimler/Mercedes-Benz, BMW, Porsche, Audi, VW, and Opel and at suppliers like Bosch, ZF, and Continental etc., are affected by restructuring. Car manufacturers are therefore increasingly offering employees termination agreements (Aufhebungsverträge).
Why a Fair Severance is So Important
A fair severance payment is crucial for your financial security, especially if a professional reorientation is planned. In many cases, you do not have to settle for a low severance. Our experts know the specific collective bargaining agreements (Tarifverträge) and works agreements (Betriebsvereinbarungen) of the automotive groups and negotiate the best possible conditions for you.
How to Succeed in Severance Negotiations
1. Analyze Your Negotiation Position
The analysis of your negotiation position is central to achieving high severance payments.
In addition to your employment contract, collective agreements, and works agreements, personal circumstances play an important role.
Our severance lawyers know which clauses to look for in the analysis and provide you with a structured overview of your rights and options.
2. Negotiate Skillfully
A common negotiation mistake, for example, is disclosing the desire to leave the company too early.
Furthermore, you should not give the impression that you would take any severance anyway. If you do, you cannot expect a high severance offer.
You can also improve your negotiation position by actively defending yourself against breaches of duty by the employer and thus making yourself "uncomfortable." In the automotive industry, for example, it is increasingly observed that employees lose their jobs due to restructuring without being offered an equivalent position internally. You do not have to put up with such breaches of duty.
3. Pay Attention to Tax Advantages
The best negotiation result is useless if a large part of it is consumed by taxes.
Although severance pay hasn't been tax-free since 2006, a tax advantage can be achieved through the correct application of the so-called one-fifth rule (Fünftelregelung). This mainly depends on the correct timing and your future financial employment situation.
Typical Severance Levels in the Automotive Industry
A severance calculator that can provide an initial indication of the expected severance can be found here: Severance Calculator. The amount of severance varies depending on the company and individual circumstances:
- Daimler/Mercedes-Benz: 0.5 - 1.5 months' salary per year
- BMW: 0.5 - 1.5 months' salary per year
- Volkswagen: 0.5 - 1.5 months' salary per year
- Porsche: 0.5 - 1.5 months' salary per year
- Audi: 0.5 - 1.5 months' salary per year
- Opel: 0.5 - 1.5 months' salary per year
At suppliers like Bosch, ZF, Continental, and others, severance payments may be similar, depending on the respective collective agreements and works agreements.
Why Professional Advice is Important
Professional severance advice can make the difference between a low and a fair severance. Our labor law experts know:
- The specific collective bargaining agreements of the automotive groups
- Legal pitfalls in termination agreements
- Tax optimization possibilities
- Negotiation tactics for higher severance payments
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Questions and answers
With a termination agreement (Aufhebungsvertrag), employees and employers can end the employment relationship by mutual consent. The agreement specifies when and under what conditions the employment relationship ends.
In contrast to a unilateral dismissal, a termination agreement requires the consent of both parties. According to Section 623 of the German Civil Code (BGB), the termination agreement must be concluded in writing, meaning it must be signed by both the employer and the employee.
A termination agreement requires the consent of both parties to the employment contract – both the employer and the employee. The parties cannot force each other to conclude a termination agreement.
If, for example, the employee rejects a termination agreement, the employer may choose to terminate the employment relationship unilaterally. In doing so, however, they must observe the statutory protection against dismissal (Kündigungsschutz) for the respective employee. The employee can file a wrongful dismissal lawsuit (Kündigungsschutzklage) with the labor court within three weeks of receiving a notice of dismissal pursuant to Section 4 of the German Protection Against Dismissal Act and have the validity of the dismissal reviewed.
No, there is generally no automatic entitlement to severance. Entitlement to severance pay exists only in exceptional cases – for example, if a law, a social plan, or a provision in the employment contract expressly regulates a claim to severance.
In most cases, you must take action and negotiate the amount of a possible severance with the employer.
Sometimes the employer also offers severance without you having to file a lawsuit. In particular, if they have already dismissed you and want you to waive a wrongful dismissal lawsuit. This is called a settlement agreement (Abwicklungsvertrag).
Even though employers usually do not have to pay severance, it is often the better solution for them to reduce ongoing costs.
With a severance payment, the employer buys your consent to the separation. The employment relationship then ends by mutual consent, providing the company with legal certainty. That's why many employers are willing to pay severance – but the amount is a matter of negotiation.
The better your chances would be in a potential wrongful dismissal proceeding in court, the more you can usually negotiate.
No, you do not have to do that. Your unlimited employment contract continues until it is ended by a unilateral dismissal, a mutual termination, or a fixed-term arrangement – you do not have to "defend" your job or reapply. You have a right to employment in your position based on your employment contract.
If your position is eliminated due to restructuring, the employer must take action: If they cannot continue to employ you unchanged, they are obliged to first offer you an equivalent position if one exists. If necessary, they must issue a notice of termination for operational reasons, either as a notice of change in terms (Änderungskündigung) or a final dismissal.
You thus have a strong position: The employer must look after you, not the other way around.
