Calculate Severance Pay: Knowledge and Advice

Questioner

I'm being fired, with mutual consent. I'm being offered severance pay that I think is far too low. What is the legal amount I'm entitled to? I've been working there for 10 years and am now 49 years old.

Questioner

Dear litigant, The Subdistrict Court Formula can be used. However, you and your employer are free to determine a culpability factor (C). There are guidelines, but it primarily depends on negotiations between you and your employer. I recommend having an employment lawyer review your case and represent your interests. The associated costs will naturally pay for themselves in the negotiations. I'm happy to help you with your negotiations. You can contact me or one of the lawyers here—using the direct contact button—for quotes once you're logged in.

Questioner

There's no such thing as a fixed legal right to severance pay. You're referring to the subdistrict court formula (google it), but that's merely a guideline used by subdistrict court judges for termination proceedings before that same subdistrict court. The formula is also often kept in mind when negotiating a termination agreement, but far more important for determining the (reasonable) amount of severance pay are the circumstances of the case, such as the reason for dismissal, the employee's prospects in the labor market, the employer's financial situation, any culpability of the parties in the occurrence of the reason for dismissal, and of course factors such as age and length of service. So, it's impossible to predict exactly how all this will (or should) play out in your case. However, I do advise you to seek expert employment lawyer assistance in your negotiations with your employer. If you have legal expenses insurance or are a member of a union, you can contact them. If not, you might consider contacting me or one of the other employment lawyers here. We're happy to help you—always—at a reasonable rate. In addition, reimbursement of legal assistance costs is often negotiated by the lawyer in the termination agreement. Anyway, good luck & kind regards,

Questioner

I'll definitely keep this in mind. They want an answer around Easter about whether I've chosen a transfer or a buyout. The transfer means at least two hours of travel time per day and is difficult to reach by public transport. (Unfortunately, I can't afford a car.) I'm considering a transfer, because a job is better than being fired. But I don't know if I can handle those commutes every day.

Questioner

Thanks for your feedback! It's always good to hear we've been helpful. Please consider your choice carefully. Failure to accept could jeopardize your unemployment benefits if you don't draft the settlement agreement properly.