Notice period and redundancy pay in Europe 2026: what you're owed, country by country
Getting let go is stressful enough without also having to decode unfamiliar employment law. The rules on notice and severance vary enormously across Europe — some countries guarantee a fixed statutory payout by law, others leave it to negotiation, and the notice period alone can run from two weeks to seven months depending on where you work. This guide sets out exactly what you're entitled to in Germany, the Netherlands, Spain, Italy, the UK and Austria in 2026: the real formulas, the caps, and the strict deadlines for challenging a dismissal you think was unfair. It isn't legal advice, but it's the number you should be checking your settlement against before you sign anything.
By the Libravo editorial team · Updated 14 June 2026
Germany: long notice periods, but severance isn't automatic
German notice periods (Kündigungsfrist) scale with tenure under Section 622 of the Civil Code: the statutory minimum is four weeks (to the 15th or end of a calendar month), rising in steps to two months after five years, three months after eight years, and up to seven months once you've worked more than 20 years. What surprises many people is that Germany has no general statutory right to severance pay (Abfindung) on an ordinary dismissal — it's common in practice, especially in operational redundancies negotiated with the works council under a social plan (Sozialplan), or offered under Section 1a of the Dismissal Protection Act in exchange for you not suing. A widely used rule of thumb for negotiated severance is 0.5 months' gross salary per year of service, but it is a starting point for negotiation, not a legal entitlement. If you've worked more than six months at a company with more than ten employees, you're protected by the Dismissal Protection Act (KSchG) and can challenge a dismissal — but only within three weeks of receiving it.
The Netherlands: a precise statutory formula from day one
The Netherlands is the most formula-driven of the five. If your employer ends your contract, you're entitled to the transitievergoeding (transition payment) from your very first day of employment, calculated as one-third of your monthly salary for every year worked, pro-rated for partial years. On a €3,500 monthly salary and 5 years of service, that's roughly €5,833. The payment is capped in 2026 at €102,000, or one year's salary if you earn more than that. Separately, statutory notice periods for your employer scale with tenure: one month under 5 years, two months for 5–10 years, three months for 10–15 years, and four months beyond that; if you resign, your own notice period is a flat one month. The transition payment is generally not owed if you resign voluntarily without serious cause, or if the dismissal is due to your own serious misconduct.
Try it yourself
Country
Enter salary as
Estimate for the 2026 tax year. Assumes a single employee, no dependants, standard situation. · Source: HMRC
This is a simplified estimate for general guidance, not tax advice. Real take-home pay varies with region, tax class, dependants, benefits and deductions. Check the official source for your exact figure.
Spain: two very different numbers depending on how you're dismissed
Spain has one of Europe's sharpest distinctions between a 'fair' and an 'unfair' dismissal, and the gap in compensation is large. A fair redundancy for economic, technical, organisational or production reasons (despido objetivo) entitles you to 20 days' salary per year worked, capped at 12 months' pay, with 15 days' written notice. But if the dismissal is found to be procedurally flawed or the employer's grounds don't hold up, it becomes an unfair dismissal (despido improcedente), and compensation jumps to 33 days' salary per year worked, capped at 24 months' pay (for contracts since February 2012; older contracts use a blended 45/33-day formula). You have only 20 working days from the dismissal date to challenge it — a strict, non-extendable deadline — so if something about your dismissal letter or notice looks wrong, that clock is the first thing to check.
Italy: TFR belongs to you regardless of why you leave
Italy's system separates two things that other countries bundle together. The TFR (Trattamento di Fine Rapporto) is deferred compensation that accrues from your very first day of work, roughly one month's salary for every year employed (your annual salary divided by 13.5, then revalued each year) — and critically, it is owed to every employee on every kind of termination, including resignation, so it isn't severance for a redundancy specifically, it's money you've already earned. Notice periods sit on top and are set by your sector's collective agreement (CCNL) rather than a single national rule, typically running from 15 days up to several months depending on your role and seniority; if proper notice isn't given, the employer owes pay in lieu (indennità sostitutiva del preavviso). If you were hired after March 2015 and dismissed without justified grounds, a separate unjust-dismissal indemnity applies on top of your TFR, scaled to your seniority.
The United Kingdom: a public, indexed formula
UK statutory redundancy pay is calculated by age band and capped, and both figures are reviewed and published every April. For redundancies from 6 April 2026, weekly pay is capped at £751, giving a maximum statutory redundancy payment of £22,530. You need at least two years' continuous service to qualify, and each full year worked counts differently depending on your age that year: half a week's pay under 22, one week's pay from 22 to 40, and one and a half weeks' pay from 41 onward, with service capped at 20 years. The first £30,000 of a redundancy payment is tax-free. Statutory notice runs at one week per full year of service, capped at 12 weeks, though your contract may specify longer. Pay in lieu of notice (PILON), unlike the redundancy payment itself, is fully taxable.
Austria: no automatic severance, but every contribution is yours to keep
Austrian notice periods scale with tenure under the Angestelltengesetz: six weeks in your first two years, rising to two months from year three, three months from year six, four months from year sixteen, and five months from year twenty-six. Unless your contract says otherwise, termination takes effect at the end of a calendar quarter, not the day notice is given. Like Germany, Austria has no lump-sum statutory severance for an ordinary dismissal — but it has something none of the other five countries offer. Under the Abfertigung Neu system, your employer pays 1.53% of your gross monthly salary into your own portable pension fund (Betriebliche Vorsorgekasse) every month from your second month of employment onward. That money is yours regardless of why the job ends — including if you resign — and you can withdraw it after three years of contributions, or simply carry it to your next employer's fund. Probation is capped at one month, during which either side can end things without notice.
What to check before you sign anything
Whichever country you're in, treat any settlement or termination letter as a starting point to verify, not a final number. Work out your statutory minimum using the formulas above, check it against what's actually being offered, and pay close attention to the challenge deadline — three weeks in Germany, twenty working days in Spain, and similarly tight windows elsewhere, all of which run from the date of dismissal, not from when you get around to reading the letter properly. And remember that notice pay, redundancy pay, and any unused holiday are usually taxed differently — the salary calculator below can help you work out what a given payout actually nets you once tax applies.
Frequently asked questions
How much redundancy pay am I owed in Germany?
There's no general statutory formula — severance isn't automatic on an ordinary dismissal in Germany. A common negotiated benchmark is 0.5 months' gross salary per year of service, often used in social plans or Section 1a settlements, but it's a starting point, not a legal right. Notice periods, by contrast, are statutory and scale from four weeks to seven months by tenure.
What is the Dutch transition payment (transitievergoeding)?
It's the Netherlands' statutory severance: one-third of your monthly salary per year worked, owed from your first day of employment if your employer ends the contract. It's capped in 2026 at €102,000, or one year's salary if higher.
What's the difference between fair and unfair dismissal pay in Spain?
A fair redundancy (despido objetivo) pays 20 days' salary per year worked, capped at 12 months. An unfair dismissal (despido improcedente) pays 33 days per year, capped at 24 months. The gap is deliberate — it's designed to penalise dismissals that don't meet the legal bar.
Do I get severance in Italy if I resign?
Yes — TFR (Trattamento di Fine Rapporto) is owed on every termination, including resignation, because it's deferred pay you've already earned, not compensation for being let go. It's roughly one month's salary per year worked. A separate unjust-dismissal indemnity only applies if you're dismissed without justified grounds.
How much is UK statutory redundancy pay in 2026?
It depends on your age and length of service, up to a maximum of £22,530 for redundancies from 6 April 2026 (based on 20 years' service at the highest 1.5-week multiplier and the £751 weekly pay cap). You need at least two years' continuous service to qualify, and the first £30,000 is tax-free.
How does Austria's Abfertigung Neu work?
Unlike a traditional lump-sum severance, it's a continuous contribution: your employer pays 1.53% of your gross monthly salary into your own Betriebliche Vorsorgekasse fund from your second month of employment. The money is yours regardless of how the job ends — even if you resign — and you can withdraw it after three years of contributions or carry it into your next job's fund.
How long do I have to challenge a dismissal?
It varies sharply by country: three weeks in Germany, 20 working days in Spain. These deadlines are strict and generally not extendable, so check the date on your dismissal letter immediately rather than waiting.
Is redundancy pay taxed?
It depends on the country and the amount. In the UK, the first £30,000 is tax-free but notice pay (PILON) is fully taxable. In Spain, the legally mandatory amount is generally exempt up to a limit. Rules vary elsewhere, so check the specific tax treatment for your country rather than assuming the whole payout is tax-free.
Ready to claim?
Use our free step-by-step guide with a claim-letter template, or check your flight first.
Was this guide helpful?
General information based on Regulation (EC) 261/2004 and its UK retained version, not legal advice. Libravo is not affiliated with any airline.