The Termination of Consultancy Agreement is essential when parties wish to formally end their consultancy relationship before its planned termination date or to document the agreed-upon ending of a consultancy engagement. This document, governed by German law, particularly the German Civil Code (BGB) and Commercial Code (HGB), outlines the terms of separation, including final payments, handover requirements, and ongoing obligations. It's crucial for protecting both parties' interests, ensuring compliance with German legal requirements, and providing clarity on post-termination responsibilities. The agreement typically includes provisions for confidentiality, data protection under GDPR, return of property, and settlement of any outstanding matters. It's particularly important for documenting mutual understanding and preventing future disputes regarding the termination terms.
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1. Parties: Identification of the company and consultant, including full legal names and addresses
2. Background: Reference to the original consultancy agreement, its date, and brief description of the decision to terminate
3. Definitions: Key terms used in the agreement, including reference to defined terms from the original consultancy agreement
4. Termination Date: Clear statement of when the consultancy agreement will terminate
5. Mutual Release: Release of claims between parties, subject to the terms of the termination agreement
6. Outstanding Payments: Details of any final payments, expenses, or fees due to the consultant
7. Return of Property: Requirements for returning company property, documents, and materials
8. Continuing Obligations: Surviving terms from the original agreement, particularly confidentiality and intellectual property rights
9. Data Protection: Provisions for handling personal data post-termination in compliance with GDPR
10. Final Provisions: Governing law, jurisdiction, and entire agreement clause
1. Non-Compete Obligations: Include when there are post-termination competition restrictions (must comply with § 110 GewO)
2. Handover Process: Include when there are ongoing projects or responsibilities that need formal handover
3. Reference Letter: Include when parties agree on the provision of a reference letter (Arbeitszeugnis)
4. Settlement Payment: Include when there is a special termination payment or settlement amount
5. Client Notification: Include when there are specific requirements for informing clients about the termination
6. Tax Indemnity: Include when there are significant payment arrangements requiring tax clarification
7. Assistance with Transition: Include when post-termination transition support is required
1. Schedule 1 - Outstanding Payments Calculation: Detailed breakdown of final payments, including fees, expenses, and any other compensation
2. Schedule 2 - Company Property Register: List of all company property to be returned by the consultant
3. Schedule 3 - Ongoing Projects Status: Status report of all projects and tasks requiring handover
4. Appendix A - Original Consultancy Agreement: Copy of the original agreement being terminated
5. Appendix B - Data Processing Records: Documentation of personal data processed and handling instructions post-termination
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Management Consulting
Financial Services
Healthcare
Manufacturing
Professional Services
Engineering
Energy
Telecommunications
Real Estate
Education
Digital Marketing
Construction
Environmental Services
Relevant Teams
Legal
Human Resources
Procurement
Finance
Compliance
Operations
Risk Management
Executive Leadership
Administrative
Project Management Office
Relevant Roles
Legal Counsel
HR Director
Procurement Manager
Project Manager
Contract Manager
Chief Financial Officer
Business Development Manager
Operations Director
Compliance Officer
Risk Manager
General Counsel
HR Business Partner
Department Head
Managing Director
Chief Executive Officer
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