Comparative law notes
The German and UK severance arrangements share the same purpose: to settle-up and close-out the employment relationship in an effort to avoid future problems arising from the separation. Given the greater employee protection afforded by the German employment laws and specifically the prospect of an employee action for unlawful dismissal (Kündigungsschutzklage), German employers generally face more risks and higher burdens of proof when terminating an employee than UK employers do. Thus, for German employers, it may be said that the motivation to enter into a severance agreement and make a redundancy payment is higher. In the context of this type of redundancy payment - the Regalabfindung - the great frequency with which these tactical steps are taken has yielded laws and judicial guidance on what the appropriate amount or standard of payment should be. These standards are far more prevalent in Germany than the UK.
