Early Termination Of Employment Contract for Germany

Early Termination Of Employment Contract Template for Germany

This document template provides a comprehensive framework for the mutual termination of employment relationships under German labor law. It encompasses all essential elements required by German employment legislation, including the Civil Code (BGB) and Protection Against Dismissal Act (KSchG), ensuring compliance with statutory requirements while protecting both employer and employee interests. The document addresses crucial aspects such as termination dates, notice periods, severance payments, outstanding benefits, and mutual releases, with specific provisions adapted to German legal requirements and common market practice.

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What is a Early Termination Of Employment Contract?

The Early Termination Of Employment Contract is a crucial document used in Germany when both employer and employee agree to end the employment relationship before its intended term or notice period. This document becomes necessary in various scenarios, including corporate restructuring, mutual agreement to part ways, or as part of a settlement to avoid potential legal disputes. It must comply with strict German labor law requirements, including consideration of notice periods, severance calculations, and mandatory consultation with works councils where applicable. The document serves as a legally binding agreement that protects both parties' interests while ensuring adherence to statutory requirements under German employment law, including the Civil Code (BGB) and Protection Against Dismissal Act (KSchG).

What sections should be included in a Early Termination Of Employment Contract?

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

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

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Clear statement of the effective date of employment termination

5. Final Salary and Benefits: Details of final regular salary payment and treatment of standard benefits

6. Notice Period Treatment: Handling of notice period including any garden leave or immediate termination provisions

7. Outstanding Holiday Entitlement: Calculation and settlement of remaining vacation days

8. Company Property: Requirements and timeline for returning company property

9. Confidentiality Obligations: Ongoing confidentiality obligations post-termination

10. Final Settlement: Full and final settlement clause and waiver of claims

11. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Early Termination Of Employment Contract?

1. Severance Payment: Terms of any severance payment - include when severance is being offered

2. Reference Letter: Terms regarding the provision of a reference letter (Arbeitszeugnis) - include when specific terms about references need to be agreed

3. Post-contractual Non-compete: Terms of any post-employment competition restrictions - include when applicable and legally enforceable

4. Ongoing Benefits: Treatment of specific benefits that continue post-termination - include for senior employees or special benefit cases

5. Share Options/Long-term Incentives: Treatment of outstanding equity or long-term incentive awards - include when employee has such arrangements

6. Works Council Agreement: Reference to works council consultation - include when works council exists

7. Training Cost Repayment: Handling of any training cost repayment obligations - include when relevant

8. Company Housing: Arrangements regarding company housing - include when applicable

9. Outplacement Support: Details of any career transition support - include when offered

What schedules should be included in a Early Termination Of Employment Contract?

1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial settlements including salary, severance, and holiday pay

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

3. Schedule 3 - Benefit Details: Detailed list of benefits and their treatment post-termination

4. Schedule 4 - Outstanding Obligations: List of any outstanding obligations or projects to be completed before departure

5. Appendix A - Release of Claims: Detailed release of claims document in compliance with German law

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

Jurisdiction

Germany

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Retail

Healthcare

Education

Construction

Telecommunications

Energy

Transportation

Media and Entertainment

Real Estate

Hospitality

Automotive

Pharmaceutical

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Personnel Administration

Talent Management

Executive Management

Finance

Compensation and Benefits

Relevant Roles

HR Director

HR Manager

Legal Counsel

Employment Lawyer

HR Business Partner

Compliance Officer

Personnel Administrator

Benefits Specialist

HR Operations Manager

Employee Relations Manager

Talent Management Director

Chief Human Resources Officer

General Counsel

Department Manager

Line Manager

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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