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A Social Plan is a collective scheme that describes which provisions have been made for the employees. A Social Plan can be adopted unilaterally by the employer, in consultation with the works council, or be agreed upon with the trade unions.

A Social Plan that has been agreed upon with the trade unions is in principle binding. The court will only in exceptional cases deviate from the agreed Social Plan. If a Social Plan has been adopted unilaterally or in consultation with the works council, the Social Plan has no binding force.

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