IANAL and it's a German thing, so had Grok translate:
The Purpose of a Severance Payment (Abfindung) The main purpose of a severance payment is to provide financial compensation for the loss of your job. It is designed to help the employee bridge the gap caused by the loss of future earnings, the transition into unemployment, and the associated uncertainties.Main Purposes from the Employee’s Perspective
Compensation for lost income: Your job and regular paycheck disappear. The severance payment helps cushion the financial impact—for example, during your job search, retraining, or until you start a new position. Recognition of years of service: Longer tenure is often “rewarded” with higher payments (e.g., formulas like 0.5–1 month’s salary per year of employment). Social buffer: It helps cover costs such as moving, further education, or bridging gaps in social security coverage.
Purpose from the Employer’s Perspective Employers rarely pay severance out of pure generosity. They do so for practical business reasons:Creating legal certainty: The employer wants to end the employment relationship quickly and cleanly. A wrongful termination lawsuit can be expensive and time-consuming (possible reinstatement plus back pay). Avoiding litigation risk: Many terminations have formal flaws or issues with the social selection process. A severance payment essentially “buys” the employee’s agreement not to sue. Maintaining workplace peace: Especially during mass layoffs or restructurings (such as relocating a site), severance helps prevent unrest among remaining employees.
Legal Background in Germany There is no automatic legal entitlement to a severance payment under German law. German labor law primarily protects the existence of the employment relationship (dismissal protection), not the financial loss itself. Severance is usually:Voluntary / negotiated (the most common case), Regulated in a social plan (§ 112 BetrVG), Or offered under § 1a KSchG (when the employer explicitly includes the offer in a dismissal for operational reasons).
In summary: A severance payment is a compromise tool. For the employee, it serves as a bridge to the next phase of life. For the employer, it is a “door opener” for a clean separation. Without it, dismissal protection would often be much more rigid—with it, greater flexibility is created for both sides.
Yes, it's the same way here in the US. But there is no requirement in most situations for it so you are not entitled. It sounds to me like your company pretty much is under new ownership and they want to move it to another town and you don't want to go with them. So they let you go. It does not sound like you are entitled to anything to me. It does not sound like you have any basis for any sort of lawsuit either. You can't expect the company to stay where you want them for your convenience.
Correct, no entitlement, something I meanwhile found out while researching.
The company might want to avoid a long drawn out lawsuit procedure but I didn't even suggest that, I asked nicely like "How do we arrange things, so I get a nice severance payment?". We're still on speaking terms. The guy said something noncommittal along the lines of he's open to a reasonable sum.
Don't get me wrong, I'm not hot for any lawyer action but also not a fan of leaving money on the table. I've spent most of my life at that place and always gave 110 percent. I'm not ashamed to try.
Your statements are pretty highly conflicting though. It just seems to me, like I said before, the company is moving to a new location and you don't want to go. I don't think you're entitled to anything.
>Correct, no entitlement >Because the least that's coming to me is half a month's pay for every year I've worked there (39 years).
Sounds like entitlement
>I'm not hot for any lawyer action >They have another thing coming. It's lawyer time.
Sounds pretty litigious to me.