About to Lose Your Job? Act Now!

After publishing my blog post, Your 10-Step Checklist: What to Do When You’re Fired in Germany, quite a few people have asked me, “What should I do if I’m at risk of losing my job? What steps should I take?” So, I created this blog post specifically to address these concerns and guide you through the process if you suspect or know that your contract won’t be renewed, or you’re about to lose your job in Germany.

Let’s walk through the steps that will help you prepare and take action during this challenging time.

1. Notify the Agentur für Arbeit Immediately

As soon as you know that your contract won’t be renewed or you’re at risk of losing your job, it’s crucial to notify the Agentur für Arbeit (Federal Employment Agency) immediately. When you notify them, you’ll be registered as a job seeker, which grants you access to essential support and resources, such as unemployment benefits and programs like the AVGS voucher (Aktivierungs- und Vermittlungsgutschein), which can help with career coaching or training. This is particularly important because you don’t have to wait until you’re unemployed—you can already act if you’re at risk of losing your job.

Here’s why registering as a job seeker is important:

• It gives you access to unemployment benefits (Arbeitslosengeld I) if you’re eligible.

• It provides access to programs like the AVGS voucher, which can cover the cost of career coaching or training. Learn more about the AVGS voucher and how to obtain it in this post.

• Failure to notify the Agentur für Arbeit on time can lead to delays in receiving your benefits or, in some cases, penalties.

Pro Tip: When notifying the Agentur für Arbeit, have your employment contract or any official communication regarding the end of your job on hand.

2. Open Up Communication with Your Employer

If you suspect that your job is at risk but don’t yet have proof, the worst thing you can do is avoid the conversation. By avoiding the topic, you’re digging your hole even deeper.

Be proactive and open up communication with your employer and HR. Request clarification about your position and ask directly about your future with the company. It’s much better to receive the bad news now than later because it gives you extra time to take action. Do not create a "maybe it will be okay" illusion for yourself—get the facts and act on facts. Do not rely on assumptions; have an honest, heart-to-heart conversation and get the facts.

Being active in this situation puts you in a better position to negotiate severance or other benefits and plan your next steps.

Pro Tip: Be polite but direct. Getting clear information sooner gives you the advantage of time to make strategic decisions. Don’t create a "maybe it will be okay" illusion for yourself—get the facts and act accordingly.

3. Review Your Employment Rights

When you know your job is at risk or your contract won’t be renewed, review your employment rights to ensure your employer is following the correct legal process.

Here’s what to check:

• Notice periods: Make sure your employer has adhered to the correct notice period based on your contract or German labor law.

• Severance pay: In some cases, you may be entitled to severance pay. If not legally required, your employer might offer it as part of a termination agreement. This can include financial compensation or non-financial benefits like career coaching.

• Unused vacation days or overtime: Clarify how any unused leave or overtime will be compensated.

• Unused learning and development budget: Check if your company has any unused learning and development budget. Highlight this to your employer and request to use the budget before you leave. This could be allocated toward career coaching or other courses that would make you a more attractive candidate in the job market.

Pro Tip: If you're unsure about your rights, consider seeking legal advice or consulting with a workers’ council (Betriebsrat) if your company has one. Additionally, I offer a one-hour free, no-strings-attached coaching session to help you understand your situation and options better. Feel free to reach out!

4. Prepare for Negotiating Your Severance Package (Including Career Coaching)

When preparing to negotiate a severance package, it’s important to be strategic. While financial compensation is the most common form of severance, there are other non-monetary benefits you can negotiate, such as career coaching services.

Here’s what to consider in your negotiations:

• Financial compensation: Typically, severance packages are calculated based on your length of service. A common rule is half a month’s salary for every year of employment.

  Pro Tip: I recommend not calling the financial compensation "severance" in official documentation. Instead, refer to it as a "bonus." This makes a significant difference when your unemployment benefits (Arbeitslosengeld) are calculated, as bonuses are factored into your earnings, which can increase your monthly benefits.

• Career coaching: You can negotiate for your employer to cover the cost of career coaching to help you transition into your next role more smoothly. Many employers are open to offering career coaching as part of severance. To make this easier for your employer and feel like less hassle, have a concrete plan at hand. Perhaps a concrete offer with a price, so they can easily review and approve it. Do your homework—find a coach you want to work with, get their offer, and lay it on the table for your employer to consider.

• Additional time with the company: In some cases, it may be beneficial to negotiate for more time with the company instead of immediate financial compensation. For example, if you worked at the company for two years and they offer one month of severance pay (0.5 salaries per year worked), you could ask to stay employed for one more month instead. This can delay your unemployment period and buy you more time.

  If you'd like to learn the details on how to negotiate a severance package and what to include, be sure to read my guide, "Negotiating a Severance Package in Germany: What You Need to Know."

5. Apply for Unemployment Benefits (Arbeitslosengeld I)

Once you’ve notified the Agentur für Arbeit, it’s time to apply for unemployment benefits (Arbeitslosengeld I). If you’ve been employed for at least 12 months within the last 30 months, you may qualify for these benefits.

The entire registration process for unemployment benefits can be done from home online, and it’s relatively easy if you know some German. The process is typically very fast, and decisions often come within 1 to 2 weeks.

Here’s what you’ll need:

• Your personal details and employment history.

• Documentation like your ID card, tax ID, and bank account details.

• Your last salary statements and termination letter or notice of contract end.

Once registered, you’ll also receive access to the online portal for managing your benefits. You’ll receive access via traditional post once your registration is complete and you are officially unemployed.

6. Take Advantage of Career Coaching and Training (AVGS or Bildungsgutschein)

One of the best ways to proactively prepare for your job transition is by taking advantage of career coaching or training services. In Germany, programs like the AVGS voucher (Aktivierungs- und Vermittlungsgutschein) or the Bildungsgutschein can cover the costs of these services.

What’s important to remember is that you don’t need to wait until you’re unemployed to act. If you have a formal notice or strong indications from your employer that you’ll soon lose your job, you can already apply for these vouchers. Being at risk of unemployment qualifies you for them.

• The AVGS voucher covers services like career coaching or job placement support.

• The Bildungsgutschein is more focused on retraining and upskilling for a new career.

Pro Tip: If you suspect or know you’re losing your job, act now. Don’t wait until it’s too late to explore these programs. For more information on the AVGS voucher, check out this post. I’ve also written a very detailed post on how to maximize your chances of receiving an AVGS voucher, which you can read here.

7. Update Your CV and Online Profiles

As you prepare for your next career steps, take this time to update your CV and LinkedIn profile. Ensure your latest job experience is reflected, and highlight any significant achievements.

Here’s what to focus on:

• Key achievements and responsibilities in your last role.

• New skills or certifications that make you stand out.

• Tailor your CV to reflect the types of jobs you’re now targeting.

Pro Tip: If you’re unsure about how to position yourself or need help fine-tuning your CV, consider working with a career coach to make sure your profile stands out.

8. Network and Let People Know You’re Looking

Now is the time to use your professional network to let people know you’re open to new opportunities.

Here’s how you can start:

• Reconnect with former colleagues or industry contacts who might know of openings.

• Attend industry events or online webinars to network and meet potential employers.

• Leverage LinkedIn to connect with recruiters and professionals in your field.

Pro Tip: Networking is one of the most powerful tools in your job search. Many positions are filled through word of mouth, often before they’re even posted publicly.

9. Be Cautious About What You Sign

When facing job termination or contract non-renewal, it’s important to remember that you are not obligated to sign anything immediately. Always take the time to read through any documents carefully and, if possible, consult with a lawyer or career coach before agreeing to any terms.

Here are some tips:

• Don’t rush: Ask for time to review documents. It’s completely acceptable to take a few days to understand what you’re signing.

• Seek advice: If you’re unsure about anything, consult with a legal professional or a career coach for guidance.

Pro Tip: Approach the situation calmly and professionally. Being pleasant and cooperative can often help you negotiate a better outcome, including a more favorable severance package.

10. Stay Positive and Focused

Facing job loss or the end of a contract can be tough, but it’s also an opportunity to explore new paths. It’s important to stay positive and focused during this period of transition.

• Set weekly job search goals to keep yourself motivated.

• Use this time to reflect on what you want from your next career move.

• Consider this an opportunity to break old patterns and build a life you love.

Pro Tip: Don’t hesitate to seek support from career coaches or counseling services to help you stay focused on your next steps.

Conclusion: Take Charge of Your Future

Losing a job or facing the end of a contract doesn’t have to be the end—it can be the beginning of something new. By taking proactive steps—like opening communication with your employer, notifying the Agentur für Arbeit, applying for benefits, negotiating your severance package, and seeking career coaching—you’ll be in the best position to move forward confidently.

Need help figuring out your next move? Book a free call with me today, and let’s map out your new blueprint together. Do you have any questions? Feel free to contact me!

Until our next breakthrough!