Downsizing: How managers avoid the most expensive mistakes when it comes to severance pay
Special leave, bonus, company car: every detail counts in negotiations – managers can easily give away a five- or six-figure sum. A checklist and sample calculations show what matters.
Many German companies are currently cutting jobs, with the industry sector alone eliminating over 120,000 positions last year. To encourage employees to leave, companies such as BMW and Mercedes are offering significant severance packages. BMW is looking to let go of 8,000 employees and has offered a "turbo bonus" with payments reportedly exceeding 650,000 euros in some cases.
Mercedes is offering up to 330,000 euros in production. However, employment lawyer Christoph Abeln warns that signing an termination agreement without careful consideration can have costly consequences.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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