Employer Separation Agreement Template for Germany

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Key Requirements PROMPT example:

Employer Separation Agreement

"I need an Employer Separation Agreement for our Senior Software Developer who is voluntarily leaving the company on March 1, 2025, including provisions for handover of ongoing projects, treatment of unvested stock options, and a 6-month non-compete clause."

What is a Employer Separation Agreement?

An Employer Separation Agreement (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 particularly useful in situations where parties wish to avoid potential litigation or agree on terms that differ from statutory minimums. The agreement must comply with strict German labor law requirements, including the Civil Code (BGB), Protection Against Dismissal Act (KSchG), and various social security regulations. Typically used during restructuring, voluntary departures, or dispute resolutions, it covers essential elements such as termination date, severance payments, benefit arrangements, and mutual releases. The document requires careful drafting to ensure enforceability and protect both parties' interests while addressing specific requirements of German employment law.

What sections should be included in a Employer Separation Agreement?

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

2. Background: Brief description of the employment relationship, including start date, position, and reason for separation if mutually agreed

3. Definitions: Key terms used throughout the agreement

4. Termination of Employment: Clear statement of the termination date and mutual agreement to end the employment relationship

5. Final Salary and Benefits: Details of final salary payment, including treatment of any outstanding vacation days, bonuses, or other benefits

6. Severance Payment: Amount, calculation method, payment date, and tax treatment of the severance payment

7. Release of Claims: Mutual release of employment-related claims, specifically adapted to German law requirements

8. Confidentiality: Ongoing obligations regarding company secrets and confidential information

9. Reference Letter: Commitment to provide a qualified reference letter (qualifiziertes Arbeitszeugnis)

10. Social Security and Tax Provisions: Acknowledgment of unemployment benefit implications and tax treatment of payments

11. Final Provisions: Salvatory clause, applicable law, and form requirements

What sections are optional to include in a Employer Separation Agreement?

1. Garden Leave: Terms of garden leave period if applicable, used when employee is released from work duties before termination date

2. Post-Contractual Non-Compete: Terms of any continuing non-compete obligations, only needed if maintaining existing or establishing new non-compete arrangements

3. Company Property: Details of company property return process, needed when employee has significant company assets

4. Ongoing Projects Handover: Process for transitioning work responsibilities, used for senior positions or complex roles

5. Stock Options/Benefits: Treatment of outstanding stock options or long-term benefits, needed if employee participates in such programs

6. Outplacement Services: Details of any career transition support offered, included for senior positions or as part of negotiated benefits

7. Reference Contact: Designation of specific contact person for future reference requests, useful for senior positions

8. Works Council Statement: Reference to works council involvement, required if works council exists and was involved in the process

What schedules should be included in a Employer Separation Agreement?

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of final salary, severance, and other payments

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

3. Schedule 3 - Benefits Summary: Summary of treatment of various benefits and entitlements

4. Appendix A - Draft Reference Letter: Agreed form of qualifiziertes Arbeitszeugnis

5. Appendix B - Handover Plan: Detailed plan for transitioning responsibilities and ongoing projects

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

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Technology

Manufacturing

Professional Services

Healthcare

Retail

Telecommunications

Energy

Real Estate

Construction

Education

Automotive

Chemical Industry

Media and Entertainment

Logistics and Transportation

Pharmaceutical

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Production

Customer Service

Administration

Compliance

Quality Assurance

Business Development

Project Management Office

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Sales Representative

Account Manager

Human Resources Manager

Financial Controller

Operations Manager

Marketing Manager

Research Scientist

Production Supervisor

Administrative Assistant

Customer Service Representative

Technical Specialist

Business Analyst

Legal Counsel

Product 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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