Calculating severance pay is now very simple for every employee as with a few clicks they can get a very complete picture of the amount they are entitled to in case of dismissal.
To calculate your severance pay, a number of factors are taken into account, including:
Work time: Your working time for the employer counts towards the compensation calculation. Each year of full-time employment corresponds to 1/2 monthly salary.
Salary: Your monthly salary, taking into account any overtime, allowances and other regular remuneration, is the basis for the calculation.
Surcharges: In case of dismissal after 10 years of work, the compensation is increased by 30%.
How to calculate:
How is severance pay calculated?
1. Find the working time:
Calculate full-time years.
Count any months you missed but are considered workable (eg sick leave).
2. Calculate the monthly salary:
Add up your regular earnings (salary, overtime, benefits) for the last month.
Divide the total amount by the number of working days.
Multiply the result by 30 to find the monthly salary.
3. Calculate the compensation:
Multiply the working time (in years) by the monthly salary.
Divide the result by 2.
If your work lasts more than 10 years, multiply the result by 1.3 (30% increase).
Example:
Working time: 5 years
Monthly salary: €1,500
Compensation = (5 years * €1,500) / 2 * 1.3 = €5,625
Calculation Tools:
- You can use online severance calculation tools such as:
- You can also consult an occupational therapist for more personalized help.
The process in video:
When am I not entitled to severance pay?
You are not entitled to severance pay in the following cases:
1. Dismissal for good reason:
Serious breaches of your duties:
Solid evidence of theft, embezzlement, sabotage, or other criminal activity.
Systematic unexcused absence from work.
Violent or abusive behavior towards the employer or colleagues.
Deliberately causing damage to the business.
Inability to perform your duties:
Weakness due to illness or disability, if it cannot be cured or improved.
Loss of professional license.
Significant change in the financial conditions of the business:
Merger, acquisition, or bankruptcy of the business.
Drastic reduction in productivity or turnover.
2. Voluntary resignation:
The dismissal is due to your own wish.
Cases of exercising the right of unilateral termination by the employee for an important reason are excluded.
3. Expiration of a fixed-term contract:
Your contract ends smoothly, through no fault of the employer.
The cases of renewal of the contract for an indefinite period are excluded.
4. Dismissals due to force majeure:
Natural disasters, war, or other unforeseen events that make it impossible to continue the business.
5. Dismissal due to retirement:
You have reached the legal retirement age.
Note: The existence of good cause for dismissal is decided by the courts.
Dismissal without an employee’s signature: what to do
The dismissal of an employee without his signature is a controversial case with various interpretations and possible consequences. According to labor law, the dismissal must be in writing and communicated to the employee, while the employee must sign the dismissal document, proving receipt. It is worth noting that the refusal to sign does not affect the validity of the dismissal, as long as the notification has been made in another legal way (e.g. with a bailiff).
However, the employee’s signature may be considered as an acknowledgment of the correctness of the dismissal, limiting any future claims.
Refusal to sign can be used as evidence that the employee contests the dismissal, strengthening any future lawsuit.
Consequences of refusal to sign
The employer, for its part, can consider the refusal as an obstacle to work and impose sanctions, while at the same time, the employee can bring a lawsuit for the invalidity of the dismissal or for compensation. In any case, if you are faced with the unpleasant situation of being fired from your job, read the document carefully before signing. If you disagree with the dismissal, do not sign and consult an employment lawyer about your rights. You can go to court if you think the dismissal is invalid or unfair.
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