Document background
The Departure Letter (Aufhebungsvertrag) is a crucial document in German employment law used when an employer and employee agree to terminate their employment relationship by mutual consent. This approach often presents advantages over unilateral termination, offering both parties more flexibility in negotiating terms while avoiding potential legal disputes. The document typically addresses key aspects such as the termination date, final salary payments, treatment of bonuses and benefits, holiday entitlements, and company property return. Under German law, such letters must comply with specific legal requirements, including written form requirements under §623 BGB and consideration of mandatory notice periods. The document may also need to account for works council rights and social security implications. It's particularly useful in scenarios where a clean break is desired or when the statutory notice periods or dismissal protection regulations make unilateral termination challenging.
