An Employment Separation Agreement (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This approach differs from unilateral termination and offers more flexibility in structuring the separation terms while avoiding potential unfair dismissal claims. The agreement is commonly used during restructuring, voluntary departures, or when resolving employment disputes. It must comply with strict German labor law requirements, including mandatory provisions for severance calculations, notice periods, and social security implications. The document typically includes comprehensive terms covering financial settlements, benefit arrangements, and post-employment obligations, while ensuring compliance with works council rights where applicable. Special attention must be paid to employee protection provisions under German law, as courts may scrutinize these agreements to ensure they don't unfairly disadvantage the employee.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers
2. Background: Brief context of the employment relationship, including start date and current position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear specification of the employment end date and last working day
5. Final Salary and Benefits: Details of final regular salary payment, including treatment of any outstanding bonuses or commissions
6. Severance Payment: Amount, calculation basis, and payment terms of any severance payment (Abfindung)
7. Holiday Entitlement: Settlement of remaining vacation days and any compensation for unused leave
8. Company Property: Requirements and timeline for returning company property
9. Confidentiality: Ongoing obligations regarding confidential information
10. Final Settlement: Confirmation that all mutual claims are settled (Ausgleichsklausel)
11. Reference Letter: Commitment to provide a qualified reference letter (qualifiziertes Arbeitszeugnis)
12. Social Security and Tax: Confirmations regarding social security and tax treatment of payments
13. Governing Law: Confirmation of German law application and jurisdiction
1. Garden Leave: Terms of release from work duties until termination date, used when immediate cessation of work is desired
2. Non-Competition: Post-contractual non-compete provisions, only if specific compensation is provided as required by German law
3. Outplacement Support: Details of any career transition services offered, common in larger companies
4. Company Benefits Continuation: Any extension of benefits beyond termination date, such as health insurance or company car
5. Works Council Approval: Reference to works council involvement, required if works council exists
6. Stock Options/Share Plans: Treatment of existing equity compensation, relevant for employees with such benefits
7. Legal Costs Contribution: Agreement on payment of employee's legal consultation costs, common in Germany
8. Pension Arrangements: Special provisions for company pension schemes, if applicable
1. Schedule 1: Payment Calculation: Detailed calculation of final payment including severance, outstanding salary, and holiday pay
2. Schedule 2: Company Property List: Itemized list of company property to be returned
3. Schedule 3: Benefit Details: Detailed list of benefits and their treatment post-termination
4. Appendix A: Data Privacy Notice: Mandatory information about personal data processing post-employment
5. Appendix B: Reference Letter Draft: Agreed form of employment reference letter
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Telecommunications
Energy
Automotive
Pharmaceuticals
Media and Entertainment
Real Estate
Logistics and Transportation
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Production
Customer Service
Administration
Quality Assurance
Compliance
Procurement
Project Management Office
Relevant Roles
Chief Executive Officer
Managing Director
Department Head
Senior Manager
Project Manager
Software Developer
Sales Representative
Marketing Manager
Financial Controller
HR Manager
Operations Manager
Research Scientist
Account Manager
Production Supervisor
Administrative Assistant
Technical Specialist
Business Analyst
Legal Counsel
Customer Service Representative
Design Engineer
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