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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement
4. Termination of Employment: Clear statement of mutual agreement to terminate, specifying the effective date
5. Final Salary and Benefits: Details of final regular salary payment and treatment of outstanding benefits
6. Severance Payment: Amount, calculation basis, and payment terms of any severance payment
7. Company Property: Requirements and timeline for returning company property
8. Confidentiality Obligations: Ongoing confidentiality obligations post-employment
9. Reference Letter: Commitment to provide a reference letter (Arbeitszeugnis) and its basic terms
10. Release of Claims: Mutual release of claims related to the employment relationship
11. Final Settlement: Confirmation that the agreement represents full and final settlement
12. Governing Law: Specification of German law as governing law
13. Severability: Standard clause on the validity of remaining provisions if others are invalid
1. Garden Leave: Used when employee is to be released from duty before termination date
2. Post-Contractual Non-Compete: Include when maintaining or modifying existing non-compete obligations
3. Continued Benefits: When certain benefits will continue post-employment
4. Works Council Agreement: Required when works council exists and has been involved in the termination
5. Company Housing: Include when employee has been provided with company housing
6. Stock Options/Share Plans: Treatment of existing equity compensation plans
7. Outplacement Services: When company provides career transition support
8. Insurance Continuation: Details of any continued insurance coverage
9. References and Communications: Agreed approach to external and internal communications about the departure
1. Schedule 1 - Severance Calculation: Detailed calculation of severance payment including any bonus pro-ration
2. Schedule 2 - Company Property Inventory: List of company property to be returned
3. Schedule 3 - Outstanding Benefits: Detailed list of accrued but unused vacation days and other benefits
4. Schedule 4 - Reference Letter Draft: Agreed form of reference letter
5. Schedule 5 - Handover Plan: Timeline and responsibilities for knowledge transfer and handover
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