The Contract Release Letter (Aufhebungsvertrag) is a fundamental document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This approach differs from unilateral termination and offers advantages in terms of legal certainty and flexibility in arranging the separation terms. The document is particularly useful in situations where parties wish to avoid notice periods, desire different termination terms than those in the original employment contract, or want to mitigate potential legal disputes. It must comply with German Civil Code requirements, particularly §623 BGB requiring written form, and typically includes provisions for final payments, benefit arrangements, and mutual releases. The document needs careful consideration of social security implications and unemployment benefit effects under German law.
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1. Heading and Date: Official letterhead, date, and reference information
2. Parties: Full legal names and addresses of both employer and employee
3. Current Employment Status: Brief statement of current position, start date, and existing employment contract details
4. Mutual Agreement to Terminate: Clear statement of mutual agreement to end employment relationship
5. Termination Date: Specific date when employment relationship will end
6. Final Salary and Benefits: Details of final regular salary payment and treatment of benefits
7. Holiday Entitlement: Settlement of remaining vacation days or payment in lieu
8. Company Property: Requirements for return of company property
9. Final Release: Mutual release of claims related to employment relationship
10. Governing Law: Confirmation that German law governs the agreement
11. Signatures: Space for dated signatures of both parties
1. Severance Payment: Terms of any severance payment offered, including amount and payment date - include when severance is part of the agreement
2. Garden Leave: Terms of garden leave period if applicable - include when employee will be placed on garden leave before termination
3. Reference Letter: Agreement regarding the provision of a reference letter - include when specifically negotiated
4. Confidentiality Obligations: Ongoing confidentiality requirements - include when handling sensitive information
5. Non-Compete/Non-Solicitation: Post-employment restrictions - include when required by business interests
6. Pension and Benefits Continuation: Treatment of pension rights and any continuing benefits - include when applicable
7. Works Council Approval: Reference to works council approval if required - include when works council exists
8. Legal Advice Confirmation: Confirmation that employee had opportunity for legal advice - include in complex cases
1. Calculation of Final Payments: Detailed breakdown of final salary, severance, and other payments
2. Company Property List: Itemized list of company property to be returned
3. Benefits Summary: Summary of treatment of various benefits and entitlements
4. Reference Letter Draft: Draft or agreed form of reference letter if applicable
Authors
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