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Termination Letter
I need a termination letter to formally end the employment of an employee who has been with the company for less than two years, ensuring compliance with Austrian labor laws. The letter should include the effective termination date, reason for termination, and details about the final paycheck and any remaining benefits.
What is a Termination Letter?
A Termination Letter formally ends an employment relationship in Austria, following the rules set out in the ABGB (Austrian Civil Code) and ArbVG (Labor Relations Act). It must clearly state the end date, respect notice periods, and include key details like the employee's name and position.
Under Austrian law, these letters protect both parties by documenting the exact terms of separation, severance arrangements, and final work duties. Most Austrian employers use standardized templates that comply with local works council requirements and collective bargaining agreements, while still allowing space to address specific circumstances like garden leave or immediate termination for serious misconduct.
When should you use a Termination Letter?
Use a Termination Letter when ending any employment relationship in Austria, from standard resignations to immediate dismissals for serious misconduct. This formal documentation becomes essential during restructuring, performance-based dismissals, or when an employee voluntarily leaves your organization.
The timing matters: Austrian law requires strict notice periods based on length of service and position level. Send the letter early enough to comply with these periods, which can range from two weeks to six months. For immediate terminations due to serious misconduct, deliver the letter right after the incident, documenting specific reasons to protect against potential legal challenges through Austria's labor courts.
What are the different types of Termination Letter?
- Dismissal Letter: Standard format for ending employment with notice periods, typically used for performance or business-related terminations
- Termination Letter During Probation: Simplified version with shorter notice periods for probationary employees
- Tenant Lease Termination Letter: Specific format for ending residential tenancy agreements
- Rental Lease Termination Letter: Used for commercial property lease terminations with different legal requirements
- Notice To Vacate Letter: Formal notification requiring tenants to leave, often used with breach of contract
Who should typically use a Termination Letter?
- Employers/HR Departments: Draft and issue Termination Letters, ensuring compliance with Austrian labor laws and collective agreements
- Legal Counsel: Review letters for legal compliance, especially in complex cases or immediate terminations
- Works Councils: Must be consulted before certain terminations under Austrian law, particularly in larger companies
- Employees: Receive and acknowledge the letters, may need to sign or respond within specified timeframes
- Labor Courts: Review contested terminations and assess letter compliance with legal requirements
- Trade Unions: Often involved in reviewing termination processes for union members
How do you write a Termination Letter?
- Employee Details: Gather full name, position, start date, and employee ID number
- Legal Requirements: Check notice period based on employment duration and applicable collective agreements
- Termination Date: Calculate the exact last working day considering Austrian holiday and leave regulations
- Documentation: Compile performance reviews, warnings, or incident reports for justified terminations
- Works Council: Verify if consultation is required under Austrian law
- Final Settlement: Calculate remaining vacation days, severance pay, and outstanding benefits
- Delivery Method: Prepare for registered mail delivery or in-person handover with signature confirmation
What should be included in a Termination Letter?
- Company Details: Full legal name, address, and registration number of the employer
- Employee Information: Complete name, position, and employee identification number
- Termination Date: Clear statement of the last working day and notice period calculation
- Legal Grounds: Specific reference to relevant sections of Austrian employment law or collective agreements
- Final Payments: Details of outstanding salary, vacation compensation, and severance entitlements
- Return of Property: List of company items to be returned before departure
- Confidentiality Obligations: Reminder of ongoing duties after employment ends
- Signature Block: Space for both employer and employee signatures with date fields
What's the difference between a Termination Letter and a Disciplinary Letter?
While a Termination Letter and a Disciplinary Letter both address workplace issues, they serve distinct purposes in Austrian employment law. A Termination Letter formally ends the employment relationship, while a Disciplinary Letter documents misconduct or performance issues while maintaining employment.
- Legal Effect: Termination Letters conclusively end employment contracts with specific end dates and severance terms; Disciplinary Letters serve as formal warnings without ending employment
- Timing Requirements: Termination Letters must follow strict notice periods under Austrian law; Disciplinary Letters can be issued at any time
- Content Focus: Termination Letters detail final arrangements and post-employment obligations; Disciplinary Letters outline specific incidents and required improvements
- Works Council Involvement: Terminations often require works council consultation; disciplinary actions typically don't need this level of oversight
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