The social plan is the result of an agreement between the employer and the works council on the compensation or mitigation of economic disadvantages that employees suffer as a result of planned operational changes. For this purpose, it can be requested by the works council if the company employs more than 20 employees who are entitled to vote.
The employer and works council decide together on the social plan that has the effect of a company agreement has (§ 112 Abs. 1 BetrVG). It is subject to the works council's right of co-determination. If both parties cannot reach an agreement, an arbitration board will decide upon application by one of the parties with binding effect.
Contents of a social plan
- Severance payments as one-time financial compensation.
- Securing retirement benefits, e.g. B. through an additional company pension.
- Payment of moving costs in order to absorb additional burdens.
- Forwarding, e.g. B. the placement of employees with other employers.
- Retraining, e.g. B. Course fees are borne by the employer.
- Implementation with wage compensation, e.g. B. when used in other branches of the company.
Social plan in the event of bankruptcy
If a company goes bankrupt, a social plan can be agreed between the insolvency administrator and the works council. If no agreement can be reached, the social plan is to be determined by an arbitration board. A total amount of up to two and a half monthly earnings (Section 10 (3) of the Dismissal Protection Act) of the employees affected by dismissal can be provided for the compensation or mitigation of the economic disadvantages that arise for the employees as a result of a planned change in the company (Section 123 Inso). The services for the employees can z. B. be calculated based on age, length of service and monthly income.