End Of Service Contract for Germany

End Of Service Contract Template for Germany

A German End of Service Contract (Aufhebungsvertrag) is a mutual agreement document that formally terminates an employment relationship between an employer and employee under German law. The document outlines the terms and conditions of the employment termination, including the termination date, final compensation, treatment of benefits, and any post-employment obligations. It must comply with German labor law requirements, including specific provisions under the German Civil Code (BGB) and the Protection Against Dismissal Act (Kündigungsschutzgesetz). The agreement typically includes provisions for final settlements, reference letters, and handling of company property, while ensuring compliance with German data protection regulations.

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What is a End Of Service Contract?

The End of Service Contract (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This agreement is particularly valuable when parties wish to avoid the strict dismissal protection regulations in Germany or want to ensure a clean and amicable separation. The document must comply with German labor law requirements and typically includes detailed provisions about the termination date, final payments, benefits settlement, company property return, and post-employment obligations. It's commonly used during restructuring, voluntary departures, or when offering severance packages. The agreement provides legal certainty for both parties and helps prevent future employment disputes. Special attention must be paid to German-specific requirements such as the mandatory reference letter (Arbeitszeugnis) and works council involvement where applicable.

What sections should be included in a End Of Service Contract?

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

2. Background: Brief context of the employment relationship and mutual agreement to terminate

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Clear specification of the employment end date and last working day

5. Final Salary and Benefits: Details of final salary payment, including pro-rated bonuses and outstanding benefits

6. Vacation Entitlement: Settlement of remaining vacation days and related compensation

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

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

9. Release of Claims: Mutual release of employment-related claims

10. Confidentiality: Ongoing obligations regarding confidential information

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 severability clause (salvatorische Klausel)

14. Execution: Signature blocks and date of agreement

What sections are optional to include in a End Of Service Contract?

1. Garden Leave: Include when employee is to be released from work duties before termination date

2. Severance Payment: Include when a severance payment is offered, with detailed calculation and payment terms

3. Post-Contractual Non-Compete: Include when maintaining or modifying existing non-compete obligations

4. Outplacement Services: Include when employer is providing career transition support

5. Works Council Approval: Include when works council was involved in the termination process

6. Health Insurance Continuation: Include when specific arrangements for health insurance transition are needed

7. Stock Options/Equity: Include when addressing treatment of outstanding equity compensation

8. Pension Arrangements: Include when specific pension or retirement benefit terms need to be addressed

9. References and Recommendations: Include when specific arrangements for future references beyond the standard reference letter are agreed

What schedules should be included in a End Of Service Contract?

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of final payment including salary, bonuses, and deductions

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

3. Schedule 3 - Benefits Summary: Summary of benefit entitlements and cut-off dates

4. Appendix A - Data Privacy Notice: GDPR-compliant notice regarding handling of personal data post-employment

5. Appendix B - Release Form: Detailed release of claims form if required by company policy

6. Appendix C - Reference Letter Draft: Draft of the agreed reference letter content if pre-agreed

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
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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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