Am I entitled to severance pay if I've been dismissed?

Many people assume every dismissal automatically comes with severance pay — it doesn't. When a genuine entitlement actually arises, and how to enforce it.

After a dismissal, almost every client asks the same first question: am I now entitled to severance pay? The sobering answer: there is no general statutory right to severance pay on dismissal. A dismissal on its own does not trigger any payment. Even so, many employees do end up with severance in the end — just not automatically, but because they stand up for their rights.

How I can help you

• I check whether your dismissal is actually valid in the first place — that’s the lever for securing severance pay.
• I file an unfair dismissal claim within the deadline, where there is a reasonable prospect of success.
• I negotiate a settlement on your behalf under which the employer commits to paying severance.
• I check whether the dismissal letter contains a severance offer under section 1a of the Dismissal Protection Act (Kündigungsschutzgesetz).
• I explain how a settlement agreement with severance pay affects your unemployment benefit.

How severance pay actually arises in practice

The most common route is the unfair dismissal claim: you challenge the dismissal in court, and because both sides want to avoid an unfavourable judgment — the employer risks having to reinstate you, you risk losing the job altogether — the parties often settle on a severance payment. The law does not force this settlement, but in practice the dynamics of the proceedings very often lead there. Alternatively, the employer sometimes proactively offers a settlement agreement (Aufhebungsvertrag) with severance pay to end the employment relationship amicably and quickly.

The special case: section 1a of the Dismissal Protection Act

One of the few situations with a genuine statutory entitlement to severance pay is section 1a of the Dismissal Protection Act. If the employer dismisses you for operational reasons and expressly states in the dismissal letter that you are entitled to severance pay if you let the claim deadline expire, you receive that severance pay provided you do not file an unfair dismissal claim. This is a deliberate decision against pursuing the claim — whether that is more favourable for you than litigating should be assessed beforehand, not afterwards.

Important on the deadline: whether it’s a claim or a severance offer, the clock starts running from the date you receive the dismissal. More on this on the Employment Law page.

How I proceed for you

I check your dismissal for validity, realistically assess your prospects of success, and negotiate consistently towards severance pay — whether in court proceedings or out of court. We clarify the costs of the initial assessment at our first meeting; before the labour court, each side bears its own legal costs in the first instance in any event (section 12a of the Labour Courts Act), and legal expenses insurance frequently covers the costs.

Don’t wait too long to get in touch — the claim deadline runs regardless of whether you have already made up your mind.

This article provides general information and is no substitute for legal advice in an individual case. Last updated: 2026-07-05.

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