Work Settlement Agreement Template for Austria

The Work Settlement Agreement is utilized in Austrian employment contexts when an employer and employee mutually agree to terminate their employment relationship. This document is particularly important under Austrian law as it provides a clear framework for amicable separation while ensuring compliance with local employment regulations. It is commonly used when parties wish to avoid potential disputes or litigation, or when implementing a voluntary redundancy program. The agreement typically includes comprehensive details about financial settlements, reference provisions, and mutual releases, while ensuring adherence to Austrian-specific requirements such as mandatory severance pay (Abfertigung) calculations and works council consultation where applicable. This type of agreement is especially relevant in corporate restructuring, voluntary departures, or when resolving potential employment disputes through negotiated settlements.

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

2. Background: Brief history of employment relationship, including start date, position, and context leading to the settlement

3. Definitions: 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 ends and last working day

5. Settlement Payment: Detailed breakdown of the settlement sum, including basis for calculation and payment terms

6. Tax and Social Security: Treatment of payments for tax and social security purposes, including any special tax provisions

7. Final Salary and Benefits: Details of final salary payment, pro-rated bonuses, and treatment of benefits

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

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Release of Claims: Mutual release of claims and waiver of rights to future claims

11. References: Agreement on the content and format of employment references

12. Governing Law: Confirmation that Austrian law governs the agreement

13. Execution: Signature blocks and date of agreement