According to a study by French economist Yann Coatanlem, published in the autumn and reported on by the Handelsblatt, a series of targeted measures could reduce the cost per dismissal in Germany by approximately two and a half times, bringing the factor down to 1.27 times the annual salary. The investigation outlines seven specific proposals aimed at managing termination costs.
Among these suggestions, one critical proposal is to lower the income threshold for facilitated dismissals from €177,000 to €101,400 annually. This adjustment would enable the study to cover roughly ten percent of full-time employees, compared to the previously planned coverage of only two percent. Furthermore, Coatanlem suggests that, instead of consulting with the works council on an ad hoc, case-by-case basis, companies should be allowed to use a preliminary notification system that covers entire groups of employees.
To curb early retirement trends, the study also recommends raising the monthly pension supplement for long-standing high earners from 0.5 to 0.7 percent. The research notes that even three of the seven proposed measures alone could significantly lower these costs.
