Layoff Simulator

Glossary

These are the German words you will hear when a company cuts jobs. Each one is explained in plain English, with the law behind it. The simulator teaches them one by one as you go.

Money

§ 1a-AbfindungStatutory severance offer

The dismissal letter can promise 0.5 monthly salaries per year if you do not sue.

AbfindungSeverance pay

Money for losing the job.

Agentur für ArbeitFederal Employment Agency

The public office that pays unemployment benefit and helps with the job search.

AnnahmeverzugslohnBack pay

If a court finds the dismissal invalid, the job never ended.

ArbeitslosengeldUnemployment benefit

Insurance money from the Agentur für Arbeit after a job ends: 60% of your former net pay, 67% with a child.

FreistellungPaid release from work

The company keeps paying your salary until the end date, but you no longer come to work.

RuhenBenefit pause

If your contract ends before the notice period would have, and you get severance, your benefit rests until the notice period would have ended..

SozialplanSocial plan

An agreement between the company and the Betriebsrat that softens a layoff, usually with a severance formula.

SperrzeitBenefit block

If you give up your job yourself, the Agentur für Arbeit pays nothing for 12 weeks.

SprinterklauselEarly exit clause

A clause that lets you leave before the end date when you find a new job.

Deadlines

ArbeitsuchendmeldungJobseeker registration

Register with the Agentur für Arbeit 3 months before your job ends.

BedenkzeitTime to think

Nobody can make you sign on the spot.

Drei-Wochen-FristThree-week deadline

You have 3 weeks from the day the letter arrives to sue.

KündigungsfristNotice period

The company must give notice ahead of time.

Protection

IntegrationsamtIntegration office

The public office that must approve the dismissal of a severely disabled employee before the company sends it.

KleinbetriebSmall company

In a company with 10 or fewer employees the general dismissal protection does not apply.

KündigungsschutzDismissal protection

After 6 months in a company with more than 10 employees, a dismissal needs a valid reason.

SonderkündigungsschutzSpecial protection

Some employees are almost impossible to dismiss: during pregnancy and 4 months after birth, during parental leave, with a severe disability (the Integrationsamt must approve first), and Betriebsrat members..

UnkündbarkeitProtection from ordinary dismissal

Many collective agreements rule out ordinary dismissal after long service and a certain age.

WartezeitWaiting period

Dismissal protection starts only after more than 6 months in the job.

WeiterbeschäftigungAnother job in the company

A dismissal is invalid if the company could employ you in another open position, even after reasonable retraining..

People and plans

AnhörungWorks council hearing

The company must hear the Betriebsrat before every single dismissal and give it one week to respond.

BetriebsratWorks council

The elected employee body.

InteressenausgleichReconciliation of interests

The company and the Betriebsrat negotiate whether, when and how the layoff happens.

NamenslisteList of names

The company and the Betriebsrat can agree on a list of the people to be dismissed.

SozialauswahlSocial selection

In a layoff the company cannot pick freely.

TransfergesellschaftTransfer company

A temporary employer set up in a Sozialplan.

Court

Annahme unter VorbehaltAcceptance under reservation

You accept the new terms for now and sue within 3 weeks.

AnwaltskostenLawyer costs

In the first labour court instance each side pays its own lawyer, even the winner.

GüteterminConciliation hearing

The first, short hearing in front of one judge, usually a few weeks after filing.

KammerterminFull hearing

If there is no settlement, the full chamber hears the case months later and decides.

KündigungsschutzklageDismissal protection suit

The suit that asks the labour court to declare the dismissal invalid.

RechtsantragstelleCourt filing office

An office at the labour court where staff write down your suit for you.

RechtsschutzversicherungLegal expenses insurance

Insurance that pays your lawyer and court costs.

Documents

ÄnderungskündigungDismissal with an offer of new terms

The company dismisses you and offers the same job on worse terms.

ArbeitszeugnisReference letter

You have a right to a written reference that covers performance and conduct.

AufhebungsvertragTermination agreement

You and the company end the contract by signing together.

KündigungDismissal

The company ends the contract alone.

SchriftformWritten form

A dismissal is only valid on paper with an original signature from someone allowed to sign.

Tax

FünftelregelungOne-fifth rule

A severance is taxed in full, but with a softer method: the tax office works out the extra tax on one fifth of it and multiplies that by five.

SteuerklasseTax class

The class your employer uses to withhold wage tax: I for singles, II for single parents, III and V for married couples with unequal pay, IV for equal earners.

ZuflussprinzipTaxed when paid

Income is taxed in the year you receive it.

Closure and insolvency

BetriebsstilllegungSite closure

When the whole site closes, nobody is selected, so there is no Sozialauswahl.

InsolvenzforderungInsolvency claim

Money the company owed you before proceedings opened.

InsolvenzgeldInsolvency pay

If your employer goes insolvent and owes you wages, the Agentur für Arbeit pays your net pay for the last 3 months of the job.

InsolvenzverwalterInsolvency administrator

The person a court puts in charge of an insolvent company.

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This page explains German employment law in general terms. It is not legal advice for your situation. If a layoff affects you, talk to an employment lawyer, your union or your Betriebsrat.