Downsizing at Continental and Vitesco in Regensburg
We explain the risks involved in a termination agreement
The Regensburg workforce of Continental and Vitesco is to be reduced by around a quarter by 2024. The planned job cuts already led to rallies in Regensburg in autumn 2020 - the mayor also got involved. Now in 2021, the job cuts will take concrete shape for the first time:
Employees in various departments, including, for example, highly qualified engineers, were presented with samples of a termination agreement. Conti / Vitesco states that the “employment relationship will be terminated due to the instigation of the employer in order to avoid an operational dismissal”. The amount of the severance payment or the factors and parameters according to which the amount of the severance payment is to be determined have not yet been mentioned.
What should Conti / Vitesco employees do when they are presented with a termination agreement that is ready to be signed?
Under no circumstances should the termination agreement be signed prematurely. Don't let your employer put you under pressure either. Signing a termination agreement has far-reaching consequences, so have the termination agreement checked by a labor law expert.
What are the consequences of a termination agreement?
If you sign a termination agreement, you end your employment relationship and waive your statutory protection against dismissal. As a rule, the employer compensates you for this waiver with a severance payment, which is usually based on your salary and length of service with the company. However, it should be noted that in certain constellations, a termination agreement can result in a ban on unemployment benefit for 12 weeks.
What are the advantages and disadvantages of a termination agreement?
A termination agreement brings in many cases for the employee many disadvantages but few advantages with himself. Impending disadvantages include, in particular, an impending ban on unemployment benefits and the evasion of notice periods. Here employees should always bear in mind that a termination agreement is often the only realistic option for the employer to part with an employee. An examination of the termination agreement by a lawyer specializing in labor law is therefore strongly recommended, as many employees are initially blinded by a severance payment and overlook the impending disadvantages.
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