There is that option too: if they want to get rid of you specifically (as opposed to just "reducing the headcount"), but the regulations say they can't legally get rid of you because they would e.g. have to get rid of people that were hired after you first, they can offer you an "Aufhebungsvertrag" ("termination/severance agreement") where you voluntarily agree to your employment being terminated in exchange for a (often quite sizable) sum of money.

> they would e.g. have to get rid of people that were hired after you first

What’s the thinking behind this one? These rules are insane.

> These rules are insane.

They are. Its the result of shallow thinking, socialism and pure graft. People don't consider there are considerable downsides to these regulations, and simply think "protecting the workers" is good.

How is ‘last in first out’ protecting workers?

older people tend to be less employable

But it’s not ‘older’ it’s longer at the company. If they wanted older why not say that?

Worker protection laws in Germany have a long history and were first established in the 19th century, not exactly an era associated with socialism.

Marx & the industrial revolution would like a word with you.

Marxism was a fringe ideology without any real political power before 1905, probably even before 1917.