> [...] If a company decides to lay off, for instance, 40 employees, German law doesn’t prevent this. Instead, the law enforces a social scoring system to determine who is affected, prioritizing the protection of the most vulnerable employees, such as those with children. In this sense, when it comes to layoffs, the difference between Germany and the US is minimal.
This is not true, and an over simplification.
Yes, you can always technically layoff in Germany, but it might not hold in court. Most people have legal insurance (mine is ~€300/y) which is tax deductible if it has employment protection. Mine will cover costs for an employment-related lawsuit.
If you feel that your layoff is not justified, you can always sue, the judge could decide that your work contract was unlawfully cancelled, leading to the company having to re-hire you and paying your salary for every month it didn't do so. The company posting record profits could weight in your favor in front of a judge. People, especially non-native like me, don't know better, they just move-on and go c'est la vie. If you sue, win and get re-hired, you can always ask to leave for a bigger package.
For companies above a certain amount of employee (50? 75?), if a small amount of employees (I think it's 3 or 4) request it, the company must run a works council election. For any layoff (individual or mass layoff), the work council must be consulted, and has co-determination, they can basically block the layoff, this was done by Volkswagen's work council recently. [1] For large mass layoffs, companies might also have to consult with the authorities.
Last thing, the social scoring is much more complicated than "those with children." If you have 4 kids and got hired 7 months ago, you might be fired, and I, single person, might keep my job with my 15 years of tenure. Tenure, disabilities, children, ... a lot of things take part into the social scoring.
All and all, I agree with a lot of the sentiments and points of the article. But saying that, outside of social scoring, layoffs between the US and Germany are the same is simply not true. There is a reasonable job security in Germany.
[1] https://www.volkswagen-group.com/en/press-releases/agreement...