Social Compensation Plan Study

Determine the cost of a social compensation plan and its conformance to standard practice in the industry

Speed and accuracy of information can be crucial factors for successful negotiation of social compensation schemes. In order to provide you with reliable benchmarks for different sectors, company sizes and regions as quickly as possible, we have entered data collected from social compensation plans over many years into a central database. This allows our CMS lawyers to systematically assess social compensation plans on which CMS advised. It also supports negotiations on social compensation schemes through fast provision of empirical data. The cost of a restructuring project can thus be calculated more accurately in advance, and the other side’s demands can be quickly compared with what is usual in the market. Experienced commercial lawyers provide support around implementing reports or benchmark studies.

Benefits

CMS has a unique and extensive collection of social compensation plans from its successful work in this field over past years. The social compensation plan study now makes this wealth of experience directly usable in the form of a tool. Commercial lawyers can use the tool on your behalf to identify the sectors or regions in Germany where severance payments are commonly paid, which special benefits are frequently provided and how long negotiations typically take.

Overview of our services:

• Preparation of extensive sector-specific benchmark studies based on the report
• Virtually instant information on individual parameters
• Visual representation of various social compensation plan parameters
• Comparison of severance payment multipliers, special supplements, caps on payments, length of negotiations
• Filtered by industry, postcode region and company size, for example

Our benchmark studies

Our social plan benchmark studies not only provide you with an insight into legal conventions around the structuring of social compensation schemes, they also identify current levels of financial compensation in social compensation schemes across the market and the impact that certain parameters can have on both the course of negotiations and their outcome. You also gain insight into other aspects commonly included in redundancy agreements. This provides you with guidance on the scale of the demands you need to factor into planning your restructuring project – especially financial planning – and whether employee expectations are excessive or in line with usual practice in the sector.

Interested?

If you have any questions about the social compensation plan study and its possible uses, please get in touch with your contact at CMS.

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