Employee Release Form for Germany

Employee Release Form Template for Germany

A comprehensive legal document governed by German employment law that formalizes the mutual agreement between an employer and employee to terminate their employment relationship. The document includes essential provisions for final payments, benefits, confidentiality obligations, and mutual releases of claims, while ensuring compliance with German labor regulations, including the Civil Code (BGB), Employment Protection Act (KSchG), and data protection requirements under GDPR. It serves as a binding agreement that protects both parties' interests and provides legal certainty regarding the termination of employment and associated obligations.

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What is a Employee Release Form?

The Employee Release Form (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. It serves as an alternative to unilateral termination and is commonly used in situations involving restructuring, voluntary departures, or dispute resolutions. The document must comply with various German legal requirements, including the Civil Code (BGB), Employment Protection Act (KSchG), and GDPR. It typically includes provisions for final payments, benefit arrangements, confidentiality obligations, and mutual releases of claims. The form is particularly important as it helps prevent future employment disputes by clearly documenting all termination conditions and agreements between the parties.

What sections should be included in a Employee Release Form?

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 and current position

3. Definitions: Key terms used throughout the agreement

4. Mutual Agreement to Terminate: Clear statement of mutual agreement to end the employment relationship and the effective date

5. Final Payments: Details of all final salary payments, including regular salary, overtime, and vacation pay

6. Company Property: Requirements for returning company property and documents

7. Confidentiality Obligations: Ongoing confidentiality obligations post-employment

8. Release of Claims: Mutual release of claims between parties, specifying what claims are covered

9. Reference Letter: Agreement regarding the provision of a reference letter (Arbeitszeugnis)

10. Data Protection: GDPR-compliant provisions regarding handling of employee data post-employment

11. Governing Law: Specification of German law as governing law

12. Severability: Standard severability clause (salvatorische Klausel)

13. Entire Agreement: Confirmation that this document represents the entire agreement between parties

14. Execution: Signature blocks and date of execution

What sections are optional to include in a Employee Release Form?

1. Non-Competition: Post-employment competition restrictions, if applicable and agreed upon

2. Severance Payment: Details of any severance payment offered, including amount and payment terms

3. Benefits Continuation: Any agreement regarding continuation of benefits post-employment

4. Outplacement Services: Details of any career transition support provided

5. Works Council Approval: Reference to works council approval if applicable

6. Social Plan Reference: Reference to applicable social plan in case of collective redundancies

7. Stock Options/Benefits: Treatment of outstanding stock options or other corporate benefits

8. References and Future Communication: Agreement on handling of future reference requests and external communications

What schedules should be included in a Employee Release Form?

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, bonus, and vacation pay

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

3. Schedule 3 - Ongoing Benefits: Details of any benefits continuing post-employment

4. Appendix A - Reference Letter Draft: Draft or agreed form of reference letter (Arbeitszeugnis)

5. Appendix B - Data Processing Agreement: Specific agreements regarding handling of personal data post-employment

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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What is a Employee Release Form?

What sections should be included in a Employee Release Form?

What sections are optional to include in a Employee Release Form?

What schedules should be included in a Employee Release Form?

Authors

Alex Denne

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