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Status: 2026-01-25
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Do employees in Germany have a right to severance pay if they are terminated by their employer?

In Germany, ending an employment relationship does not automatically trigger a right to severance pay—for either employees or employers. Still, the widespread belief persists internationally that German law entitles employees to severance pay in every case of employer-initiated termination. For international companies investing or operating in Germany, a practical understanding of this issue is essential. […]

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