Transfer Social Plan & Tripartite Contract
We advise works councils and employers on negotiating social plans and structuring the tripartite contract.
Make use of a transfer social plan
When job cuts become unavoidable, we advise employers and works councils on designing and implementing a transfer social plan and on planning funded outplacement measures and transfer companies.
- § 110 SGB III — funded outplacement coaching opens up new opportunities in the primary labour market while employees are still employed by the releasing employer.
- § 111 SGB III — the transfer company extends financial security by up to a year and enables active placement as well as preparatory training.
Severance-based social plan or transfer social plan?
We often see debates about whether a “severance-based social plan” or a “transfer social plan” is the better choice. A good social plan, by contrast, offers employees options best suited to their individual circumstances. An older parent with a family, for instance, needs different security, support and training from a young single person — yet both fall under the same social plan.
We help you find solutions that offer the right combination of social security, training, coaching and active placement — and that make full use of all the statutory options.
Guidance on drafting
Choices for employees
Some quickly find a new job and value the severance payment. Others need the support and security of a transfer company. A good social plan does justice to both situations.
Agree on as many details as possible
Alongside the duration and the protection level, the social plan should also cover the training budget, the transfer-company provider and how any unused funds are handled.
Sprinter bonus
Where employees make a contribution of their own (waiving severance or putting their notice period towards the move), they should share in the funds saved by leaving early, by way of a sprinter bonus.
If you are approaching this topic for the first time, we are happy to provide legally non-binding sample social plans.
The tripartite contract
Once the social plan is in place and the financing is settled, the agreements with KARENT as the provider must be set out in a contract and a so-called tripartite contract agreed. The contract between KARENT and the former employer governs the services to be provided and includes a provision securing the wage and salary payments (an escrow agent, a bank guarantee or — for smaller projects — advance payment).
The tripartite contract is a termination agreement and an employment contract in one. The first part governs the terms of leaving the former employer (severance, pension entitlements, working-time accounts). The second part governs the fixed-term employment relationship and the salary level between KARENT and the employee. The contract is therefore always agreed between three parties: the employee, the former employer and KARENT.
The content of the tripartite contract must always match the social plan. We provide an initial draft for this, which is then tailored to the individual case.
Ready for your next career move?
Let's discuss your options in a free initial consultation — discreet and without obligation.