Impending job loss: Caution, trap! How executives recognize their insidious degradation - and take countermeasures
If employers want to get rid of unwanted managers without having to pay high severance payments, they often resort to tricks. The most important warning signs and legal countermeasures.
Suddenly, important decisions are made over the head of the responsible manager, and he is officially stripped of personnel and budget. By this point at the latest, he should realize that his job is in danger. Demotion and demotivation - "such attacks by the employer are intended to persuade a manager to accept a termination agreement and leave the company as quickly as possible," says Christoph Abeln.
The Berlin labor lawyer mainly represents executives in legal disputes. Companies want to avoid high severance payments and are therefore increasingly using unpleasant methods to get rid of management personnel. And "the most dangerous form of this is invisible," according to the lawyer. Instead of public degradation and humiliation, a covert disempowerment occurs, which at first glance may even look like a promotion or reward.
In his book "Vom Karriereknick zum Comeback" (From Career Downturn to Comeback), Abeln has compiled the most common separation tricks used by employers - and tips on how to defend against them. Nils Schmidt, a lawyer and board member of the Association for Specialists and Executives (DFK), confirms the high relevance of the topic. "Almost daily, we deal with long-serving executives from the first and second levels of all industries who are to be subtly pushed out of the company."
The two lawyers describe how to recognize a creeping dismissal and what countermeasures are recommended.
Warning signal 1: Promotion to Managing Director
A department head who had been with a company for almost 30 years was thrilled: he was to become a managing director. Finally, he had achieved the crowning glory of his career. A new title, more prestige - and a contract that he signed without hesitation.
Danger: The manager had overlooked that the promotion also meant the end of his protection against dismissal. The new contract replaced all previous rights. "Managing directors are not classical employees," says lawyer Abeln, who handled the case. "They can be terminated at any time and have no claim to bonuses or severance payments."
Three months after Meier's appointment, he was given a termination notice - without notice.
Countermeasure: Before accepting the new managing director contract, not only the compensation arrangements should be checked, but also the safeguards. DFK lawyer Schmidt recommends: "It is best not to give up the old employment contract, but to agree to put it on hold." If the appointment is revoked or the managing director contract is terminated, this original contract comes back into effect.
Alternatively, special termination protection, a return clause, and a severance payment in the event of dismissal should be agreed in the new managing director contract.
Warning signal 2: New dual leadership
An experienced department head in the investment banking of a large German bank is suddenly assigned a co-manager in his mid-40s. The equal-ranking executive is similar to the previous managing director in terms of career and age.
Danger: Shared responsibility? How modern! Relief - great! Those who react in this way underestimate the new situation. "Such a dual leadership is not always a caring gesture by the employer, but serves a creeping disempowerment," says lawyer Schmidt. Caution is advised if the new co-boss reports directly to the common superior. "This is a popular way to initiate a dismantling."
In practice, a non-requested dual leadership means a creeping loss of power, overlapping competencies, and strong internal competition. This does not remain without consequences: Those who lose the secret competition usually have to go. This was also the case with Abeln's case in the bank: The original department head was eventually considered superfluous and was asked to accept a termination of his contract.
Countermeasure: "Do not accept the installation of a dual leadership without reacting," advises Abeln. He recommends demanding the contractual employment in writing and additionally recording a clear demarcation of the responsibilities of both co-bosses. "In addition, it should be confirmed that your reporting line - for example to the board of directors - remains unchanged."
Nevertheless, the affected manager should document all further processes as a precaution. A chronological record is important according to Abeln, should it come to a court dispute.
Warning signal 3: Transfer abroad
The 60-year-old department head from the technology sector was announced by the production board that he would be transferred to Mumbai. The engineer was supposed to ensure German quality standards in production in India. For the manager, this came as a surprise. After 25 years in the German company headquarters, it also had its appeal.
Danger: "In fact, behind the transfer abroad from the age of 50, there is often an elegantly packaged disempowerment," says Schmidt, who advises on such cases again and again. If someone agrees, they will most likely experience that during their absence, their previous position will be filled without them having heard about it beforehand. "Those who then rely on the employer still having a use for them after their return risk unemployment."
Countermeasure: "In order for the foreign assignment not to become a career dead end, you should only agree to the secondment if...
Translated by urgent.news from Handelsblatt's report; automated translation may contain errors. Machine-written — it may contain errors, so check the original before relying on it.