Termination of Volkswagen – Your rights as an affected party
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Received a termination notice? What affected VW employees should know legally now.
Volkswagen will cut more than 35,000 jobs at its core brand by 2030 – across the entire group, the figure is around 50,000. Forced redundancies are ruled out until the end of 2030; the job reductions will be achieved through severance agreements, partial retirement, and early retirement. Anyone receiving an offer faces a decision with far-reaching consequences. Rogert & Ulbrich advises affected VW employees on reviewing severance agreements, assessing their negotiating position, and on all related matters. severance pay and job security.
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3What's happening at Volkswagen right now
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 – a level reminiscent of the worst years in the company's history. In response, CEO Oliver Blume has announced a stricter cost-cutting program. Around 50,000 jobs are to be cut across the entire VW Group in Germany by 2030.
The core of the program, which has been firmly agreed upon, concerns Volkswagen AG. There, after months of industrial action, the company, the works council, and the IG Metall union reached a compromise at the end of 2024: more than 35,000 jobs are to be reduced by 2030 in a socially responsible manner, without plant closures or compulsory redundancies. In addition, there will be cuts at subsidiaries: around 7,500 jobs at Audi, around 2,000 at the software subsidiary Cariad, and up to 5,000 at Porsche.
The reduction is already underway: According to company figures, more than 25,000 departures were contractually agreed upon by the end of 2025. This will be achieved through partial retirement, early retirement schemes, voluntary termination agreements, and natural attrition. For affected employees, this means: They will not be dismissed – but they will be asked if they wish to leave.
Have you received a severance offer from VW or are you in talks about an early departure? Have it reviewed before you decide.
We will take care of your case – quickly & with commitment.
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. 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 who receive a termination agreement offer, a 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 employment agency does not recognize your departure as being due to operational reasons.
What many employees don't know: A termination 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 bonus. 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 reflect this. 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 is relying on phased retirement and early retirement schemes as key instruments for workforce reduction. These models sound attractive to many older employees – 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.
Received an offer for partial retirement or early retirement from VW? Have the figures checked before you agree.
Special protection against dismissal: Those who don't simply have to leave
Not all Volkswagen employees 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: The Integration Office must give its consent before a dismissal can take place (§ 168 SGB IX). If this consent is lacking, the dismissal is invalid.
- Pregnant women: During pregnancy and until four months after childbirth, there is a legal prohibition against dismissal (§ 17 MuSchG).
- 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 excluded for members of the works council (§ 15 KSchG).
If you belong to one of these groups and have still received a notice of termination, it is highly likely to be invalid.
Special protection against dismissal And still received a termination notice? Have it checked 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.
- Clarify the risk of a waiting period: Whether the 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 the Mass Layoffs at Volkswagen
Rogert & Ulbrich – Your lawyers in employment law
Rogert & Ulbrich advise affected employees on employment law – regarding termination agreements, partial retirement offers, early retirement arrangements, and all questions relating to the job cuts at Volkswagen. Dr. Marco Rogert and Tobias Ulbrich examine whether an offer is fair, what is negotiable, and how employees can strengthen their position.
Have you received a termination agreement or an offer of partial retirement from Volkswagen? Get in touch and secure your rights.
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