I disagree. I once worked for a services company that basically had a "6 month notice" policy, meaning if they let someone know July 23th 2016, he still has a job until January 31 2017. This gives people the opportunity to start looking for work elsewhere, without even having to reveal that they "got fired". And it's just not as much of a psychological shock for the employees. Plus, if the firing was not performance related, but due to the company not being hired for enough projects, this was something that could change after 4+ months if the company had a lucky streak, and it sometimes did happen.

Your addition of a good severance package changes the situation greatly...

Well. To fire someone from one day to the next is nearly impossible here in Germany. You always have some time (a minimum being defined by the law) of time between the day they tell you of their decision and your last working day. This time is there for your protection to enable you to seek another job.

That was what I was talking about. If I can get fired from one day to the next a company would at least have to pay me a hefty premium as I would be not better of then say a freelancer.

I'd rather see a corporation go bankrupt with their employees treated well, honestly.