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The employer has to pay a termination fee (the so called „Auflösungsabgabe“) when ending the employment of a dependent employee or a freelancer, who is obliged to pay the unemployment insurance. In 2015 this fee amounts to € 118,00.
This payment is due in the month of the ending of the employment contract resp. freelancing contract, together with the social security contributions.
Half of the earnings from this fee are used for subsidies, which promote work of elderly employees. The rest is used as reserve funds for labor market policy.
Generally, the termination fee is to be paid in following cases: