Termination Waiver Agreement for Germany

Termination Waiver Agreement Template for Germany

A comprehensive legal document governed by German law that formalizes an agreement between an employer and employee where the employee waives certain rights, typically in relation to employment termination. The agreement must comply with German employment law requirements, particularly the Civil Code (BGB) and Employment Protection Act (KSchG). It includes detailed provisions about the rights being waived, any consideration provided, and necessary acknowledgments to ensure enforceability. The document typically addresses final payments, continuing obligations, and data protection requirements while ensuring all statutory requirements for valid waivers under German law are met.

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What is a Termination Waiver Agreement?

The Termination Waiver Agreement is a crucial document in German employment law used when an employer and employee agree to settle potential claims and formally document the waiver of certain employment-related rights. It's commonly used during mutually agreed terminations, redundancy situations, or as part of settlement agreements. The document must comply with strict German legal requirements to be enforceable, including clear specification of waived rights, consideration provided, and necessary employee protections. It typically includes provisions for final payments, continuing obligations (such as confidentiality), and data protection requirements. The agreement serves to provide legal certainty for both parties and prevent future disputes, while ensuring compliance with German employment protection legislation, civil law requirements, and data protection regulations.

What sections should be included in a Termination Waiver Agreement?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and roles

2. Background: Context of the employment relationship, including start date, position, and relevant circumstances leading to the waiver

3. Definitions: Key terms used in the agreement, particularly defining the scope of rights being waived

4. Scope of Waiver: Detailed description of all rights, claims, and entitlements being waived by the employee

5. Consideration: Details of any payment or benefit provided in exchange for the waiver

6. Acknowledgments: Employee's confirmation of understanding, voluntary nature of waiver, and opportunity for legal counsel

7. Surviving Obligations: Any continuing obligations that remain in effect (e.g., confidentiality, non-compete)

8. Data Protection: Provisions regarding handling of personal data post-employment

9. Governing Law: Confirmation of German law application and jurisdiction

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Termination Waiver Agreement?

1. Works Council Statement: Required if works council involvement is necessary under BetrVG

2. Reference Letter: Section addressing the provision of employment reference letter if not handled separately

3. Company Property: Section dealing with return of company property, if applicable

4. Post-Employment Benefits: Details of any continued benefits or insurance coverage

5. Tax Treatment: Clarification of tax implications if significant payments are involved

6. Severability: Standard clause for partial invalidity, though less common in German agreements than US/UK ones

What schedules should be included in a Termination Waiver Agreement?

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of any financial settlement or final payment

2. Schedule 2 - List of Waived Claims: Specific enumeration of all claims being waived

3. Schedule 3 - Company Property Checklist: List of company property to be returned

4. Appendix A - Reference Letter: Draft or final version of the employment reference letter if agreed upon

5. Appendix B - Confidentiality Obligations: Detailed listing of continuing confidentiality obligations

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
Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Retail

Professional Services

Construction

Education

Telecommunications

Energy

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Real Estate

Media and Entertainment

Hospitality

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Agriculture

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Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Executive Leadership

Corporate Governance

Risk Management

Finance

Operations

Administration

Relevant Roles

HR Director

HR Manager

Legal Counsel

Employment Lawyer

Compliance Officer

HR Business Partner

Chief Human Resources Officer

Personnel Administrator

Employee Relations Manager

HR Operations Manager

Managing Director

Chief Executive Officer

Department Head

Line Manager

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Director

Vice President

Chief Financial Officer

Corporate Secretary

Risk 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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