News

News

There has hardly been another subject on the political agenda more often than dismissal law, and in particular, severance pay or the so-called golden handshake.

Especially in the last few years there has been much pressure from employers to relax the dismissal law but the original essence of the dismissal law has been maintained, namely, realistic protection of the employee.

If and when a working relationship is terminated, whether desired or undesired, then the negative effects should be properly limited or settled. Think of unemployment or a new job with fewer prospects.

In termination situations the employer and employee or their respective representatives can agree on a settlement or compromise regarding the way in which the employment should be terminated.

Time, counseling and compensation are the key elements. Parties concerned will negotiate these elements and if they cannot come to an agreement the case will be brought before the subdistrict court judge who can award possible compensation.

That severance pay is a right is a misunderstanding. This is dependent on the facts and circumstances and at the discretion of the subdistrict court judge.