Severance Pay: Don’t Accept the First Offer—Renegotiate!

Jobs are being cut all over Germany, even beyond high-profile examples like Volkswagen. The ifo Employment Barometer fell to 92.3 points in June 2026, one of the lowest readings since the start of the COVID-19 pandemic. One in three companies plans to cut jobs this year, according to the economic survey by the German Economic Institute. The more people lose their jobs, the more important the issue of severance pay becomes.
However, anyone who immediately signs a termination agreement including severance pay after being laid off is, in many cases, giving away money. According to the 2026 Termination Report by the software provider HR Works, only 16 percent of employees who receive a severance offer reject the initial offer and later negotiate better terms…