02/20/2015 Termination fee

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:

  • For employees with a limited time contract for longer than 6 months,
  • Mutual agreement after the probation period, except for employees with pension entitlements (based on the age: 60/65) or “Sonderruhegeldanspruch”,
  • If the employer ends the contract with the employee (the reasoning is irrelevant), even if a re-hire promise is in place,
  • Unjustifiable firing,
  • Justifiable premature ending, except for exit due to health reasoning.

If you have any questions, please just send a mail to welcome@huebner.at or contact one of our specialists directly.

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