Termination of Volkswagen In Wolfsburg – Your rights as an affected party
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What VW employees in Wolfsburg and the region need to know now about termination agreements, partial retirement and severance pay
Volkswagen is cutting more than 35,000 jobs at its core brand by 2030 – and the main plant in Wolfsburg is bearing the brunt of this burden. Anyone at the Wolfsburg plant who has received an offer of a severance agreement, partial retirement, or early retirement should know: they are under no obligation to sign, and what VW initially offers is rarely the maximum. Rogert & Ulbrich advises VW employees in Wolfsburg and the surrounding region: reviewing offers, assessing negotiating leverage, and addressing all questions related to severance pay and job security.
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3What's currently happening at Volkswagen in Wolfsburg and the region
Wolfsburg is Volkswagen – and Volkswagen is Wolfsburg. With around 70,000 employees, the main plant in Wolfsburg is the world's largest automotive factory and by far the largest employer in the city and the region. When VW announces job cuts of this magnitude, it has a profound impact on Wolfsburg: as a place to work, as a place to live, and as a business location.
The Volkswagen Group is in its deepest crisis since the diesel scandal. Operating profit plummeted by around half in 2025, and the operating margin fell to 2.8 percent. In response, CEO Oliver Blume has announced a stricter cost-cutting program. By 2030, around 50,000 jobs are to be cut across the entire VW Group in Germany – more than 35,000 of them at Volkswagen AG, the core company with its headquarters and main plant in Wolfsburg.
At the end of 2024, after months of industrial action, the company, the works council, and the IG Metall union reached a compromise: a socially responsible reduction in staff without plant closures or compulsory redundancies, but with significant concessions regarding pay and profit sharing. The reduction is already underway: according to company figures, more than 25,000 departures had been contractually agreed upon by the end of 2025 – through partial retirement, early retirement, voluntary termination agreements, and natural attrition.
Other affected sites in the region include the Salzgitter engine plant and the Gifhorn component plant. The same programs are running there as well – raising the same legal questions for employees.
Have you received a severance offer from VW or are you in talks about an early departure? Have it reviewed before you decide.
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Job security until 2030: What it means – and what it doesn't protect
The collective bargaining agreement negotiated at the end of 2024 includes a job guarantee until the end of 2030: Dismissals for operational reasons are excluded during this period. For VW employees in Wolfsburg, this is an important safeguard – but it doesn't mean that no pressure can arise. VW is not obligated to lay you off, but can work towards encouraging you to leave voluntarily.
Background: In September 2024, Volkswagen formally terminated the job security agreement that had been in place since 1994, thus making redundancies a possibility for the first time. The ensuing labor dispute was one of the most intense in the company's history. The result was a new agreement guaranteeing jobs until 2030 – but with significant concessions: no profit-sharing in 2025 and 2026, and no pay increases until 2027.
For employees at the Wolfsburg site who receive a termination agreement offer, the job guarantee provides a strong negotiating position. Those who know they cannot be dismissed don't have to feel pressured – and can play a much more active role in shaping the terms of a voluntary departure.
Want to know how strong your negotiating position really is? Get it assessed before you talk to VW about a severance agreement.
The termination agreement
What you give up – and what is negotiable
Volkswagen is relying on voluntary measures for its job cuts – meaning: nothing happens without your signature. A termination agreement ends the employment relationship by mutual consent. This means you lose your right to claim unfair dismissal and your right to continued employment. Furthermore, you risk a waiting period of up to twelve weeks before receiving unemployment benefits if the Braunschweig employment agency – responsible for the Wolfsburg area – does not recognize the termination as being due to operational reasons.
What many employees at the Wolfsburg plant don't know: A severance agreement offer isn't a standard form. It's a negotiated contract. The amount of severance pay, the termination date, garden leave, the wording of the reference letter, outplacement services, and the handling of bonuses or company pension plans are all negotiable. What VW initially offers is usually not the maximum.
Particularly relevant at VW is the profit-sharing arrangement. Since it will be eliminated under the collective bargaining agreement in 2025 and 2026, the monetary loss from early departure during this period may be lower than in other years – or the offer may not adequately account for this fact in favor of the employees. This, too, is part of the review.
Received a termination agreement from VW? Don't sign anything until you know what is negotiable and what you are permanently giving up.
Partial retirement and early retirement: opportunities and pitfalls
Besides severance agreements, VW in Wolfsburg is relying on phased retirement and early retirement schemes as key instruments for reducing staff. For many older employees at the main plant, these models sound attractive – and they can be. But here, too, careful examination is advisable before agreeing.
- Partial retirement: Typically, the model is block-based: first full-time work (active phase), then time off (passive phase). During both phases, the salary is topped up. The crucial factor is how the top-up amount, pension contributions, and the precise calculation of the benefit period are stipulated in the contract.
- Early retirement: The employment relationship ends before the statutory retirement age, and VW pays a bridging benefit. Relevant questions: How are pension entitlements affected? Are there deductions due to early retirement? And: Is the offer complete, or are there any missing provisions regarding special payments?
- Occupational pension scheme: In both models, company pension schemes can be affected. Depending on the timing of retirement and the contract terms, significant entitlements can be lost if this is not explicitly stipulated.
The offers VW makes are not necessarily flawed – but they are tailored to the company's interests. An independent review of the figures and contract details protects you from lasting disadvantages.
Have you received an offer for partial retirement or early retirement from VW in Wolfsburg? Have the figures checked before you agree.
Special protection against dismissal: Those who don't simply have to leave
Not all VW employees in Wolfsburg can be treated equally. Certain groups are subject to stricter requirements or even prohibitions on dismissal – regardless of the scale of the job cuts.
- Severely disabled persons: Before a dismissal can take place, the Integration Office must give its consent (§ 168 SGB IX). Without this consent, the dismissal is invalid. Severely disabled employees also have special protective rights against pressure to leave voluntarily.
- Pregnant women: During pregnancy and for four months after childbirth, there is a legal prohibition against dismissal (§ 17 MuSchG). Pressure to conclude a termination agreement is also legally problematic during this period.
- Parental leave: Dismissal during parental leave is generally prohibited (§ 18 BEEG). Exceptions are narrowly defined and require official approval.
- Works council members: Ordinary dismissals are generally prohibited for works council members (§ 15 KSchG). Even a termination agreement can have special legal consequences for works council members, which should be reviewed beforehand.
If you belong to one of these groups and still receive a dismissal notice or feel significant pressure to leave, you should have the situation legally assessed immediately.
What you should do now
The crucial rule: Don't rush into signing anything. Unlike with a termination notice, there's no statutory three-week deadline. VW sets internal deadlines – but these serve the company, not you. Use the time for a thorough review.
- Secure the full offer: Request a complete written offer – including all attachments and calculation bases. Verbal agreements are not valid.
- Have the overall picture checked: Severance pay, company pension scheme, bonuses, partial retirement calculation, pension effects and reference letter wording – all of this belongs in a complete review, especially for long-term employees at the Wolfsburg main plant.
- Clarify the risk of a waiting period: Whether the Braunschweig employment agency imposes a waiting period depends on the specific circumstances. This can be estimated, but not answered in general terms.
- Check your legal expenses insurance: Many legal expenses insurance policies cover employment law advice. Clarify this before your first consultation with a lawyer – the insurance company will then usually cover the costs.
- Register as a job seeker: Regardless of your decision: Register as a job seeker with the employment agency early to avoid any reduction in unemployment benefits.
Want to know if VW's offer is fair and what you can expect? Get in touch before you commit.
FAQs – Frequently Asked Questions about Terminating Your Contract at Volkswagen
Rogert & Ulbrich – Your lawyers in employment law
Rogert & Ulbrich advise affected employees nationwide on employment law – regarding termination agreements, partial retirement offers, early retirement arrangements, and all questions related to job cuts at Volkswagen. This also applies to VW employees at the main plant in Wolfsburg as well as at the Salzgitter and Gifhorn locations. Dr. Marco Rogert and Tobias Ulbrich examine whether an offer is fair, what is negotiable, and how employees can strengthen their position.
The law firm represents clients both out of court and before the labor court. Whether it's a termination agreement, a phased retirement model, or an early retirement arrangement: Rogert & Ulbrich handle the complete review and negotiation for you.
Have you received a termination agreement or an offer of partial retirement from Volkswagen in Wolfsburg? Get in touch and secure your rights.
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