severance pay
Compensation is an indefinite legal term that generally refers to a one-off service to settle legal claims , which is usually settled in the form of a cash payment or the transfer of other assets . A compensation in this sense is to be distinguished from simple one-off compensation payments (sometimes also referred to as "compensation"), which are paid to compensate for damage (i.e. not to compensate for other legal claims).
Private law
Severance payments are paid to compensate for
- corporate law claims when leaving a company by way of a dispute ( liquidation )
- Inheritance claims in the event of a dispute between a community of heirs or in the case of an inheritance waiver
- maintenance claims under family law
- Liability and insurance claims, especially in the event of personal injury caused by an accident.
Employment Law
In labor law, the main case of severance pay is the payment of severance pay for the loss of a job.
Social law
Function is the payment of
- provisional pensions and small permanent pensions from accident insurance
- with some foreign pensions
- for the widow's (widower) pension in the event of remarriage.
Stock corporation law
Severance payments are made when one company is integrated into another. The shareholder of the integrated company receives compensation for this ( in stock exchange language: severance payment ) in the form of shares in the company taking over or in cash.
See also
- Compensation credit (corporate law)
literature
- Stefan Schmidbauer: Severance payments to executives from a legal point of view and their relevance in SMEs. Publishing house for science and culture, Duisburg 2006, ISBN 3-86553-159-8 .
