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Termination Without Cause Contract for Germany

Termination Without Cause Contract Template for Germany

A comprehensive legal document governed by German law that facilitates the termination of a contractual relationship without attributing fault to either party. The agreement ensures compliance with German Civil Code (BGB) requirements and includes essential provisions for notice periods, final settlements, and post-termination obligations. It addresses the formal requirements under German law for written termination notices while managing practical aspects such as the return of property, outstanding payments, and ongoing obligations. The document is structured to protect both parties' interests and provide a clear framework for the orderly conclusion of the relationship.

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Termination Without Cause Contract

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What is a Termination Without Cause Contract?

The Termination Without Cause Contract is essential in German business and employment relationships where parties seek to end their contractual obligations amicably and without alleging breach or fault. This document type is particularly relevant under German law, which requires strict adherence to formal requirements and notice periods as outlined in the German Civil Code (BGB). It's commonly used when businesses restructure, when employees or contractors move on to new opportunities, or when commercial relationships need to be concluded for strategic reasons. The agreement typically includes provisions for notice periods, final settlements, property return, and ongoing obligations, all while ensuring compliance with German legal requirements regarding written form and content. The document serves as a crucial tool for risk management and clear documentation of the termination process.

What sections should be included in a Termination Without Cause Contract?

1. Parties: Identification of the contracting parties with full legal names and addresses

2. Background: Brief context of the original agreement being terminated and the relationship between the parties

3. Definitions: Key terms used throughout the agreement, including references to the original agreement and related documents

4. Termination Notice: Formal declaration of termination and specification of the termination date

5. Notice Period: Specification of the notice period in compliance with German law and the original agreement

6. Outstanding Payments: Details of any payments due up to the termination date and final settlements

7. Return of Property: Requirements for returning company property, documents, and materials

8. Final Obligations: List of duties and obligations that must be fulfilled before termination becomes effective

9. Governing Law: Confirmation that the agreement is governed by German law

10. Signatures: Execution section complying with German formal requirements for written form

What sections are optional to include in a Termination Without Cause Contract?

1. Ongoing Obligations: Specifies any continuing obligations that survive termination, used when certain duties continue post-termination

2. Confidentiality: Provisions regarding ongoing confidentiality obligations, included when sensitive information was shared

3. Non-Compete: Post-termination competition restrictions, included when relevant and permissible under German law

4. Cooperation: Requirements for transition assistance, included when handover of responsibilities is necessary

5. Release of Claims: Mutual release of claims, included when parties want to prevent future disputes

6. Reference Letter: Terms regarding the provision of a reference letter, included for employment relationships

7. Data Protection: Provisions regarding handling of personal data post-termination, included when personal data is involved

8. Insurance: Provisions regarding continuation or termination of insurance coverage, included when insurance matters are relevant

What schedules should be included in a Termination Without Cause Contract?

1. Schedule of Outstanding Payments: Detailed breakdown of all payments due, including any pro-rata calculations

2. Property Inventory: List of all company property to be returned

3. Ongoing Projects List: Overview of projects requiring handover or completion

4. Compliance Certificate: Form for certifying compliance with termination obligations

5. Handover Protocol: Template for documenting the handover of responsibilities and materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions

























Clauses





























Relevant Industries

Manufacturing

Technology

Professional Services

Retail

Financial Services

Healthcare

Construction

Real Estate

Logistics

Telecommunications

Education

Consulting

Energy

Automotive

Relevant Teams

Human Resources

Legal

Compliance

Operations

Procurement

Administration

Finance

Sales

Business Development

Management

Relevant Roles

Human Resources Director

Legal Counsel

Contracts Manager

Chief Operating Officer

Procurement Manager

Business Development Manager

General Manager

Department Head

Project Manager

Account Manager

Sales Director

Operations Manager

Compliance Officer

Managing Director

HR Business Partner

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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