The Employment Settlement Agreement is a crucial document used in Austrian employment contexts when an employer and employee mutually agree to terminate their employment relationship. It serves as a comprehensive record of the termination terms, typically used in situations involving voluntary departures, redundancies, or negotiated exits. The document must comply with Austrian labor law requirements, including specific provisions regarding notice periods, severance payments, and works council involvement where applicable. It addresses various aspects such as financial compensation, continued obligations, benefit treatments, and release of claims. This agreement is particularly important in preventing future disputes by clearly documenting all agreed terms and ensuring both parties understand their rights and obligations. The document must be carefully drafted to ensure enforceability under Austrian law while protecting both parties' interests.

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

2. Background: Brief history of employment relationship, including start date, position, and reason for termination

3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Settlement Sum', and other relevant definitions

4. Termination of Employment: Formal statement of employment termination, specifying the last day of employment and immediate actions required

5. Settlement Payments: Detailed breakdown of all payments to be made, including final salary, severance pay, and any additional compensation

6. Tax Treatment: Clarification of tax handling for various payment components in accordance with Austrian tax law

7. Company Property: Requirements for return of company property and confirmation of data deletion

8. Confidentiality Obligations: Ongoing confidentiality obligations post-employment

9. Full and Final Settlement: Mutual release of claims and waiver of rights, subject to Austrian legal requirements

10. Reference and Communications: Agreement on employment references and internal/external communications about the departure

11. Governing Law: Specification of Austrian law as governing law and jurisdiction

12. Execution: Signature blocks and execution requirements