[beagle3]

Not “rest of the world”, rest of the US. In Europe and e.g. Israel, minimal severance is dictated by law and its often 3-months pay or more, in some cases a months salary for each year worked (so laying someone off after 20 years means they get 20 months severance).

There are exceptions (e.g. firing “for cause” such as sexual misconduct or embezzelment) but they are really exceptional. And if the company folds and can’t pay that, the government will, and likely criminally indict the officers who let the company fold without taking care of the severance payment.

[Xylakant]

In Germany the minimum notice period is 4 weeks and increases in steps (after 2 years it’s a full month, after 5 years it’s two and tops out at 7 month after 20 years of continued employment). Since germany can’t go below European minimums, that’s an upper bar for those. It’s fairly l common to see 3 month as a minimum though. Keep in mind, however, that during that time you’re employed and expected to work, though the employer may decide that you don’t have to show up (common in security critical employments). You still can’t take another job. If you don’t show up against the employers will, that’s cause for immediate termination with no severance. Severance payments are still uncommon.

If a company folds, notice periods are capped at three month, and no, officers will not be indicted for any future failed payment. Officers may be indicted for delaying the an Insolvenz, failing to pay taxes or social security or embezzling money in the process, but costs for future wages are not on the list. There is something called Insolvenzgeld which may pay for some of the wages, but it’s capped to 5400 EUR/month and covers the outstanding wage payments for the three month _before_ the company was declared insolvent.

However, the whole social security system makes loosing or quitting a job less of an hardship. Even though quitting a job yourself now means that you’re not receiving unemployment payments for the first three months, you’ll still be covered after that, lowering the overall risk.

[user5994461]

>>> If you don’t show up against the employers will, that’s cause for immediate termination with no severance. Severance payments are still uncommon.

That's not true. An employee cannot be immediately terminated for not showing up to work ONCE. Doesn't matter if it's in the notice period or not.

If it's something that your employer does, ask you to show up on the next day while you are on garden leave, then immediately terminate you, it's serious ground to bring them to court.

[Xylakant]

The courts disagree with you: https://www.kostenlose-urteile.de/LAG-Rheinland-Pfalz_7-Sa-3...

Note that in this case, additional infractions were committed, but the court specifically pointed out hat each infraction on it own would have been sufficient grounds for termination. And this was even without handing in a notice.

It’s certainly not the regular case that your employment will be terminated immediately for being late or not showing up once, but if you hand in your notice and don’t show up the next day without a damn good excuse, this will be treated as exactly what it is: cheating your employer for a wage. And that’s a standard ground for immediate termination.

Also note that just not showing up without a good cause entitles the employer to withhold your wage. So now you’re still employed, cannot take another full-time job and don’t get wage nor unemployment payments. Good way to footgun yourself.

[scandox]

Minor quibble: a lot of businesses go bust unable to pay redundancy and there are very rarely consequences for directors unless reckless trading can be proven. That at least is my experience in Ireland and UK.

[beagle3]

I am most familiar with the situation in Israel with respect to layoffs; not paying severance in Israel is criminal whether or not the company folds (with officers actually indicted), and it’s 1-month per year of employment, with social security underwriting this payment.

As a result of this strict lawful requirement, there’s an industry of regulated escrow middlemen who collect 8.33% of monthly salary from employer on behalf of severance. If employee is terminated for cause, employer may get it back. In all other cases (including going bust), it goes to the employee.