Capped severance payments - discriminating?
Restructuring of business operations is often accompanied by the negotiation of a so-called social plan. This regulates, i.A., severance payments to employees leaving the company. These payments take into account the seniority of the employees. The individual amounts can often be high.
Can these amounts be capped with the effect that the full seniority is not compensated?
Or can such cap be a discrimination due to age?
The Federal Labour Court, BAG, has now commented on this issue.
Read our article (in German) in the online edition of the current Deutsche AnwaltSpiegel free of charge: