I have graduated from a university in Germany and found a great job that matches my degree. With this work contract, I have applied for a residence permit for employment. My documents were accepted and I have received a Fiktionsbescheinigung (my student residence permit is no longer valid).
Today I was informed that my employer is facing bankruptcy and the majority of the employees, including me, were let go. I was also told that I am entitled for severance pay if I apply at the Arbeitsamt.
What does that mean for my residence permit? Will it still be processed to the end or is my application no longer valid? Should I apply for the severance pay? I understand that I need to look for a new job immediately, since I don’t have any other “proof of being able to secure my livelihood”. Is it best to call the ABH directly and tell them about the layoff or wait to get a residence permit?
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Did you receive a written termination letter, either handed out or sent to you via registered letter?
If no: You are still employed. Do nothing until you receive it, the law is on your side.
If yes: There is a so-called “Insolvenzgeld” every employee who got terminated due to bankruptcy is entitled to. This is regardless of the time you have been with the company, so the regular 12 months employment period does not apply.
Furthermore, check if your company is threatened by bankruptcy or has filed for the opening of bankruptcy proceedings.
The big difference is that in the former case, they are not yet bankrupt and can legally sign a termination. If they are already insolvent, then only the court appointed administrator can do so, unless it’s a so-called self-administered insolvency (Insolvenz in Eigenverwaltung). So it’s good to double check to know whether the termination is in fact legal and binding.
If you have confirmed that the termination was duly received and legally issued, you must inform the Arbeitsagentur in due course (meaning: less than 14 days upon receiving the letter, ideally immediately) to apply for the Insolvency Proceeds. In that case you must as well inform the ABH without delay; however only after confirming that you have in fact been legally terminated. Don’t raise any sleeping dogs otherwise.
Thank you so much for the answer! I already received a termination letter, but there is a cancellation period, so I am still employed until the end of November (Sorry, I should have mentioned it from the start). My plan was to look for a job immediately, and in case I can find a new job before I am officially unemployed, then I would just notify ABH that I changed my job. If I can’t find a job in time, I will tell them about the situation. Is this a good idea or should I just tell them directly now what’s going on?
First you’ll have to inform the Arbeitsagentur, that’s a mandatory step you can’t delay, even if you’re not entitled to benefits. They will not automatically inform the ABH (yay data privacy laws!), so you can wait for 2 more weeks, but really shouldn’t drag it out too long.
I’d also recommend to have a lawyer review your termination letter - if you’re out of the probation period, it’s not as straightforward to fire someone, bankruptcy or not. But to counter a termination you must file a protective lawsuit within 3 weeks of the date you received it, and that’s a hard deadline. It’s fairly inexpensive, and always recommended, really.
Thanks, but what exactly would I achieve with that? My only goal right now is to stay in Germany. I would be great to get severance, but I don’t really have much hope in that regard. The more i read the replies and discussions, the more confused I get. People recommend so many things, and I don’t understand what I am supposed to get out of those actions.
Thanks, but what exactly would I achieve with that?
Fair question. You don’t achieve any direct benefit, but you get the official documentation of your unemployment status. It is creating the ‘paper trail’.
Some day later, you may need that in order to get some other benefit or to avoid formal/legal complications. The longer you are going to stay in Germany, the more likely you will have such a situation.
It’s not severance, it’s a benefit you’re entitled to and that you paid for. Secondly, without providing evidence that you did everything possible to keep your job and maintain your livelihood, this may later be held against you.
Is your Aufenthaltstitel, even in the Fiktionsbescheinigung, tied to the specific employment at this company?
If so, you need to inform the Ausländerbehörde immediately and tell them, that you are looking for a different job and ask them how to speed up the process of getting the working permit for a new position from the Agentur für Arbeit.
If you have a Aufenthaltstitel for employment and it is tied to a specific company your title is still valid when you no longer work at that specific company. The working at that specific company is a limit to your title, not a condition of it.
The Ausländerbehörde should get back to you with a timeframe, in which they expect you to find a new job. You are obliged to inform them about any change immediately, e.g. within 14 days. While you are it, showing them that you are proactive about finding a new job is in your best interest.
thanks! I wil call them. My current Fiktionsbescheinigung doesn’t say anything about a job.
I hate to say it :-) but back there on reddit in r/Germany there were some real good experts for this question.
Here are my few pieces of knowlege:
You have to contact the Arbeitsagentur in any case. Do it as soon as the main facts are known: that your work definitely will be terminated (and when, and how).
In general, you can apply for the ‘ALG 1’ severance pay if you have worked for at least 12 full months (including the remaining time in the current contract).
You can search for a new job and if it is somewhat comparable, then your residence permit/Fiktionsbescheinigung can be changed accordingly.
There are some special rights/regulations for the case when an employer goes bankrupt. Best is to ask your coworkers about that.
Luckily some of us experts are here now ;-)
Can you feel all the expectations yet? ;-)
Tbh it’s picking up rather slowly, and I don’t habitually check the community every day as I did with the subreddit, but it’s getting there!
thank you so much for the answer! i guess I won’t be able to get severance, since i was only employed for 10 months.
