Category Severance Pay

Severance pay in Germany

Severance pay germany

In Germany, there are around 200,000 disputes about unfair dismissal every year (BMAS). In a number of cases where employers dismiss employees, the employees concerned often receive compensation, even though there is no legal obligation to offer such compensation. Nevertheless,…

Certificate of employment

Certificate of employment germany

Introduction to Certificate of Employment A certificate of employment, also known as an employment reference or “Arbeitszeugnis” in German, forms a vital component of the German employment landscape. This document, legally entitled to every employee, serves as a comprehensive record…

How is severance pay taxed in Germany?

Tax on severance payments

Is income tax applicable to severance pay in Germany? Unfortunately, employees are required to pay income taxes on their severance pay. In most cases, the full amount is subject to taxation, despite it being a one-time compensation meant to reimburse…