Constructive Dismissal Settlement Agreement Template for Austria

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Key Requirements PROMPT example:

Constructive Dismissal Settlement Agreement

"I need a Constructive Dismissal Settlement Agreement under Austrian law for a senior software developer who is leaving due to substantial changes in their role and reporting structure, with a settlement payment of €75,000 and a termination date of March 15, 2025."

Document background
The Constructive Dismissal Settlement Agreement is a crucial document used in Austrian employment law contexts when an employee has resigned in response to their employer's conduct, claiming it amounts to a fundamental breach of the employment contract. This agreement serves to formally document the settlement terms agreed between the parties, including financial compensation, benefits continuation, and mutual releases. It must comply with Austrian labor law requirements, including specific provisions of the AVRAG (Employment Contract Law Adaptation Act) and the Austrian Civil Code (ABGB). The document is typically used when both parties wish to avoid litigation and reach an amicable resolution, providing legal certainty and closure for both employer and employee. It includes detailed provisions on settlement payments, tax treatment, confidentiality obligations, and other post-employment matters specific to the Austrian legal context.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers

2. Background: Brief description of the employment relationship, circumstances leading to constructive dismissal claim, and parties' desire to settle

3. Definitions: Definitions of key terms used throughout the agreement, including 'Effective Date', 'Settlement Sum', and other relevant terms

4. Termination Date: Clear statement of when the employment relationship officially ends

5. Settlement Payment: Details of the settlement sum, payment method, timing, and tax treatment under Austrian law

6. Waiver of Claims: Employee's waiver of rights to bring claims related to employment or its termination, subject to Austrian legal restrictions

7. Tax Indemnity: Employee's responsibility for their own tax liabilities arising from the settlement payment

8. Confidentiality: Obligations regarding confidentiality of the agreement terms and company information

9. Return of Property: Requirements for returning company property and documents

10. Reference: Terms regarding the provision of employment references as per Austrian practice

11. Governing Law: Specification that the agreement is governed by Austrian law

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Post-Employment Restrictions: Include when there are specific non-compete or non-solicitation provisions to be maintained

2. Continuing Obligations: Use when specific ongoing obligations from the employment contract need to be preserved

3. Medical Insurance: Include when there are specific arrangements regarding continued medical coverage

4. Legal Costs: Add when there is an agreement to contribute to the employee's legal costs

5. Works Council Acknowledgment: Include when a works council was involved in the settlement process

6. Pension Arrangements: Use when specific pension-related terms need to be addressed

7. Garden Leave: Include if there is a garden leave period before the termination date

8. Company Announcements: Add when parties agree on specific internal/external communications about the departure

Suggested Schedules

1. Schedule 1 - Settlement Payment Calculation: Detailed breakdown of the settlement sum including basic payment, holiday pay, and other elements

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Agreed Form of Reference: The agreed text of the employment reference to be provided

4. Schedule 4 - Surviving Employment Terms: List of any terms from the employment contract that survive termination

5. Appendix A - Tax Treatment Summary: Summary of tax treatment of various payment elements under Austrian law

6. Appendix B - Benefits Summary: Details of any benefits and their treatment post-termination

Authors

Alex Denne

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

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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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