Works councils impact severance pay for dismissed employees in Germany.
The study looked at how works councils affect severance payments for employees who are dismissed. They found that when a works council is present, employees who are laid off due to plant closings receive higher severance payments. However, for individual layoffs, having a works council is linked to lower severance pay. The researchers also discovered that higher chances of finding a new job reduce the amount of severance pay. Additionally, they explored differences in severance payments based on gender and the type of job previously held.