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
The dismissal letter can promise 0.5 monthly salaries per year if you do not sue.
AbfindungSeverance payMoney for losing the job.
Agentur für ArbeitFederal Employment AgencyThe public office that pays unemployment benefit and helps with the job search.
AnnahmeverzugslohnBack payIf a court finds the dismissal invalid, the job never ended.
ArbeitslosengeldUnemployment benefitInsurance money from the Agentur für Arbeit after a job ends: 60% of your former net pay, 67% with a child.
FreistellungPaid release from workThe company keeps paying your salary until the end date, but you no longer come to work.
RuhenBenefit pauseIf your contract ends before the notice period would have, and you get severance, your benefit rests until the notice period would have ended..
SozialplanSocial planAn agreement between the company and the Betriebsrat that softens a layoff, usually with a severance formula.
SperrzeitBenefit blockIf you give up your job yourself, the Agentur für Arbeit pays nothing for 12 weeks.
SprinterklauselEarly exit clauseA clause that lets you leave before the end date when you find a new job.
Deadlines
Register with the Agentur für Arbeit 3 months before your job ends.
BedenkzeitTime to thinkNobody can make you sign on the spot.
Drei-Wochen-FristThree-week deadlineYou have 3 weeks from the day the letter arrives to sue.
KündigungsfristNotice periodThe company must give notice ahead of time.
Protection
The public office that must approve the dismissal of a severely disabled employee before the company sends it.
KleinbetriebSmall companyIn a company with 10 or fewer employees the general dismissal protection does not apply.
KündigungsschutzDismissal protectionAfter 6 months in a company with more than 10 employees, a dismissal needs a valid reason.
SonderkündigungsschutzSpecial protectionSome 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 dismissalMany collective agreements rule out ordinary dismissal after long service and a certain age.
WartezeitWaiting periodDismissal protection starts only after more than 6 months in the job.
WeiterbeschäftigungAnother job in the companyA dismissal is invalid if the company could employ you in another open position, even after reasonable retraining..
People and plans
The company must hear the Betriebsrat before every single dismissal and give it one week to respond.
BetriebsratWorks councilThe elected employee body.
InteressenausgleichReconciliation of interestsThe company and the Betriebsrat negotiate whether, when and how the layoff happens.
NamenslisteList of namesThe company and the Betriebsrat can agree on a list of the people to be dismissed.
SozialauswahlSocial selectionIn a layoff the company cannot pick freely.
TransfergesellschaftTransfer companyA temporary employer set up in a Sozialplan.
Court
You accept the new terms for now and sue within 3 weeks.
AnwaltskostenLawyer costsIn the first labour court instance each side pays its own lawyer, even the winner.
GüteterminConciliation hearingThe first, short hearing in front of one judge, usually a few weeks after filing.
KammerterminFull hearingIf there is no settlement, the full chamber hears the case months later and decides.
KündigungsschutzklageDismissal protection suitThe suit that asks the labour court to declare the dismissal invalid.
RechtsantragstelleCourt filing officeAn office at the labour court where staff write down your suit for you.
RechtsschutzversicherungLegal expenses insuranceInsurance that pays your lawyer and court costs.
Documents
The company dismisses you and offers the same job on worse terms.
ArbeitszeugnisReference letterYou have a right to a written reference that covers performance and conduct.
AufhebungsvertragTermination agreementYou and the company end the contract by signing together.
KündigungDismissalThe company ends the contract alone.
SchriftformWritten formA dismissal is only valid on paper with an original signature from someone allowed to sign.
Tax
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 classThe 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 paidIncome is taxed in the year you receive it.
Closure and insolvency
When the whole site closes, nobody is selected, so there is no Sozialauswahl.
InsolvenzforderungInsolvency claimMoney the company owed you before proceedings opened.
InsolvenzgeldInsolvency payIf 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 administratorThe person a court puts in charge of an insolvent company.
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.