The Early Termination Of Employment Contract is a crucial document used in Germany when both employer and employee agree to end the employment relationship before its intended term or notice period. This document becomes necessary in various scenarios, including corporate restructuring, mutual agreement to part ways, or as part of a settlement to avoid potential legal disputes. It must comply with strict German labor law requirements, including consideration of notice periods, severance calculations, and mandatory consultation with works councils where applicable. The document serves as a legally binding agreement that protects both parties' interests while ensuring adherence to statutory requirements under German employment law, including the Civil Code (BGB) and Protection Against Dismissal Act (KSchG).
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship including start date, position, and reason for early termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear statement of the effective date of employment termination
5. Final Salary and Benefits: Details of final regular salary payment and treatment of standard benefits
6. Notice Period Treatment: Handling of notice period including any garden leave or immediate termination provisions
7. Outstanding Holiday Entitlement: Calculation and settlement of remaining vacation days
8. Company Property: Requirements and timeline for returning company property
9. Confidentiality Obligations: Ongoing confidentiality obligations post-termination
10. Final Settlement: Full and final settlement clause and waiver of claims
11. Governing Law: Confirmation of German law application and jurisdiction
1. Severance Payment: Terms of any severance payment - include when severance is being offered
2. Reference Letter: Terms regarding the provision of a reference letter (Arbeitszeugnis) - include when specific terms about references need to be agreed
3. Post-contractual Non-compete: Terms of any post-employment competition restrictions - include when applicable and legally enforceable
4. Ongoing Benefits: Treatment of specific benefits that continue post-termination - include for senior employees or special benefit cases
5. Share Options/Long-term Incentives: Treatment of outstanding equity or long-term incentive awards - include when employee has such arrangements
6. Works Council Agreement: Reference to works council consultation - include when works council exists
7. Training Cost Repayment: Handling of any training cost repayment obligations - include when relevant
8. Company Housing: Arrangements regarding company housing - include when applicable
9. Outplacement Support: Details of any career transition support - include when offered
1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial settlements including salary, severance, and holiday pay
2. Schedule 2 - Company Property Inventory: List of all company property to be returned
3. Schedule 3 - Benefit Details: Detailed list of benefits and their treatment post-termination
4. Schedule 4 - Outstanding Obligations: List of any outstanding obligations or projects to be completed before departure
5. Appendix A - Release of Claims: Detailed release of claims document in compliance with German law
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Professional Services
Retail
Healthcare
Education
Construction
Telecommunications
Energy
Transportation
Media and Entertainment
Real Estate
Hospitality
Automotive
Pharmaceutical
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Personnel Administration
Talent Management
Executive Management
Finance
Compensation and Benefits
Relevant Roles
HR Director
HR Manager
Legal Counsel
Employment Lawyer
HR Business Partner
Compliance Officer
Personnel Administrator
Benefits Specialist
HR Operations Manager
Employee Relations Manager
Talent Management Director
Chief Human Resources Officer
General Counsel
Department Manager
Line Manager
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