Dismissal, sickness, etc. Employees who are dismissed from their jobs, wholly or in part owing to production or workforce reductions, winding-up or bankruptcy, are entitled to severance pay. An agreement on severance due to a reduction in the workforce, ranks as equivalent to termination of employment. To the extent that pay after termination of employment or a severance settlement is granted, severance pay will nevertheless not be awarded if the employee has found a new job before he or she is granted unemployment benefits. Employees who are released without a specified severance date are not entitled to severance pay. Employees who are granted a disability pension are entitled to severance pay. Severance pay may be granted to employees who are receiving interim payments, provided that the Severance Pay Scheme accepts that the person is suffering from a chronic sickness and that it is improbable that the applicant will return to his or her earlier occupation in the foreseeable future. In order to rule on this, the Severance Pay Scheme may request that documentation be produced, including satisfactory medical certificates and documents linked to proceedings relating to the application for and granting of interim payments, and showing that the applicant is incapable of continuing in his or her occupation or other suitable work in the enterprise (see 3.4 below).
