Was the Homburg plant closed completely?

No, Homburg was only a partial closure. Production of new truck tyres and semi-finished products ended (over 800 jobs), while retreading of truck tyres continues at the site. The Karlsruhe and Trier plants, on the other hand, were closed completely (source: autohaus.de).

When were the closures announced and completed?

Michelin announced the restructuring on 28 November 2023. The sites were wound down step by step and closed by the end of 2025. So this is not a fresh announcement, but a restructuring that was completed by the end of 2025, although the question of severance pay remains just as relevant for those affected in 2026.

I was affected, do I still have a claim to severance pay?

German law does not grant an automatic statutory right to severance pay. A social plan was negotiated for the plant closures (sections 111, 112 BetrVG, directly enforceable via the conciliation committee under section 112(4) BetrVG); alongside this there is compensation for disadvantage (Nachteilsausgleich) under section 113 BetrVG, which is tied to the reconciliation of interests (Interessenausgleich), not the social plan. Important: the time limit under section 4 KSchG (three weeks from receipt) applies to any dismissal notice already received, and for a closure completed by the end of 2025 this deadline for an unfair dismissal claim (Kündigungsschutzklage) has usually already passed. What can still be checked, though, is whether the social plan was calculated correctly, whether any claims remain open, and any termination agreement you have already signed or been offered.

How does severance pay affect unemployment benefit and tax?

Two things need to be kept apart: a benefit suspension period (Sperrzeit, section 159 SGB III) mainly threatens if you resign yourself or sign a termination agreement without good cause; the suspension of the benefit claim (section 158 SGB III), by contrast, concerns the payment of severance where the notice period was not observed. On the tax side, the one-fifth rule (Fünftelregelung, section 34 EStG) applies; since 1 January 2025 it is no longer applied automatically during payroll tax deduction but only through the income tax assessment, provided the income is bunched into one year.

What does advice from you cost?

The initial consultation comes at no upfront cost to you. If you instruct us, we work on a success basis through litigation funding (litigation funder, activity under the RDG), so you bear no upfront cost risk.

Michelin severance pay (Abfindung): plant closures 2025

More than 1,500 employees in total across three sites: around 600 in Karlsruhe (of which around 480 in production and around 120 in the customer contact centre), around 90 in Trier and over 800 in Homburg. The restructuring was announced on 28 November 2023 and completed by the end of 2025 (sources: Michelin press release; autohaus.de).

Reviewed by specialized labor lawyers · Updated: September 2026

MICHELIN Reifenwerke AG & Co. KGaA (headquartered in Karlsruhe) announced on 28 November 2023 that it would restructure its German sites by the end of 2025, affecting more than 1,500 employees in total (source: Michelin press release, 28 November 2023).

The Karlsruhe (around 600 jobs) and Trier (around 90) plants were closed completely; the customer contact centre from Karlsruhe was relocated to Poland.

In Homburg, production of new truck tyres and semi-finished products ended (over 800 jobs); retreading of truck tyres continues there, so this is a partial closure, not a complete shutdown.

Timeline: announced in autumn 2023, implemented gradually and completed by the end of 2025. Michelin cites competition from cheap tyres made in low-wage countries and high production costs in Germany as the reasons (sources: autohaus.de, Automobil Industrie).

Social plans (Sozialpläne) were negotiated for those affected; there is no automatic entitlement to severance pay, and the trade union IG BCE was unable to prevent the closures.

Even after the plant closures, it's worth having your termination agreement (Aufhebungsvertrag) and social plan severance pay reviewed, at no upfront cost and paid only on success.

Plant closures at Michelin: the current status

Status: September 2026. On 28 November 2023, Michelin announced that it would restructure its German sites by the end of 2025. This restructuring is not a fresh announcement, but a closure that was completed by the end of 2025: announced in autumn 2023, implemented step by step, completed by the end of 2025. In total, more than 1,500 employees were affected (Michelin; autohaus.de).

Michelin cites growing competition from cheap tyres made in low-wage countries and high production costs in Germany as the reasons. The IG BCE trade union was unable to prevent the closures. For those affected, the key question in 2026 remains whether their social plan payment or their termination agreement really was the maximum achievable.

The affected sites

Karlsruhe (around 600 jobs): closed completely; around 480 jobs in production and around 120 in the customer contact centre, which was relocated to Poland.
Trier (around 90 jobs): the plant was closed completely.
Homburg (over 800 jobs): partial closure, ending production of new truck tyres and semi-finished products; retreading of truck tyres continues (autohaus.de; Automobil Industrie).

Your rights as an affected employee

There is no automatic right to severance pay. In the case of an operational change such as a plant closure, two instruments are central:

Social plan (sections 111, 112 BetrVG): negotiated between employer and works council (Betriebsrat) and, if necessary, directly enforceable via the conciliation committee (section 112(4) BetrVG), it sets the collective minimum.
Compensation for disadvantage (section 113 BetrVG): tied to the reconciliation of interests, not the social plan, and applies if the employer departs from it without compelling reason.

The time limit under section 4 KSchG: three weeks from receipt applies to any dismissal notice you have already received. For a closure completed by the end of 2025, this deadline for an unfair dismissal claim has usually already passed, but you can still have the social plan calculation checked for accuracy, any outstanding claims reviewed, and any termination agreement you have already signed or are still being offered assessed.

Get your offer or social plan reviewed

What should be checked: the amount against the social plan and your profile, the benefit suspension period risk for unemployment benefit (section 159 SGB III), a possible suspension of the benefit claim if the notice period was not observed (section 158 SGB III), waiver and settlement clauses, and the tax structuring via the one-fifth rule (section 34 EStG; since 1 January 2025 only applied through the tax assessment, provided the income is bunched into one year). Upload your document and the critical points are flagged within seconds, at no upfront cost to you.

How it works with us

An initial consultation at no upfront cost, assessment of your offer by our specialist partner law firm, and, if you instruct us, negotiation funded through litigation financing, with no upfront cost risk for you. Here's how the cost model works.

Note: Team Abfindung is an independent provider and has no business or legal connection to MICHELIN Reifenwerke AG & Co. KGaA. Any company and brand names mentioned are used solely to help affected employees find their bearings.

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