Document background
The Exit Agreement For Employees (Aufhebungsvertrag) is a fundamental instrument in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This document is particularly relevant in situations where parties wish to avoid unilateral termination processes or negotiate terms that differ from statutory requirements. The agreement typically includes comprehensive provisions covering severance payments, final salary settlements, benefit treatments, confidentiality obligations, and releases of claims. Under German law, such agreements must comply with strict regulatory requirements, including works council consultation where applicable, and careful consideration of social security and tax implications. The document serves as a critical tool for risk management, providing legal certainty for both parties while ensuring compliance with German labor regulations and EU directives.
