Severance Packages Worth Up to €150,000 on Offer as German Brewery Closes Two Sites
Published on 07/30/2026 at 11:51 | Redaktion boerse-global.de
Around 220 workers at two brewing facilities in the German state of North Rhine-Westphalia are facing redundancy, with severance payments reaching as high as €150,000 per person under a newly agreed social plan.
The deal, struck between the Food and Beverage Union (NGG) and the Haus Cramer KG group, covers employees at the Herford brewery, which will shut down at the end of August, and the Paderborn site, which faces closure by the end of this year. Roughly 100 staff in Herford and another 120 in Paderborn are affected.
Payouts Tied to Years of Service and Family Size
Compensation is calculated based on how long someone has worked at the company. For each year of employment, workers will receive between 50 and 70 percent of their gross monthly salary, capped at €150,000 total. Employees who waive their right to file a wrongful dismissal claim will get an extra 20 percent of one month’s pay per year worked.
The agreement also accounts for family circumstances: an additional €3,000 will be paid for each child. Any outstanding overtime hours will be compensated at 90 percent of their value.
The NGG described the outcome as the best possible under the circumstances, while Haus Cramer KG said it had reached fair solutions for the workforce.
Timeline and Alternative Options
Layoff notices in Herford will not be issued before September, and in Paderborn not before November. The brewery group is offering around 50 positions at its main plant in Warstein. Employees who relocate there can claim up to €3,500 in moving expenses, while those who commute will receive €0.35 per kilometre driven.
Part of a Broader Restructuring
The closures form part of a wider strategic overhaul. From 2029, the company plans to rejoin the Brewers’ Association of North Rhine-Westphalia. Consolidating all production in Warstein marks a significant shift for the brewing landscape in the East Westphalia-Lippe region. The brand rights to “Herforder” and “Paderborner” will be retained for now.
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