The Voluntary Settlement 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. This agreement is commonly utilized in situations where a clean break is desired by both parties, often as an alternative to unilateral termination. The document serves to prevent potential employment litigation and provides certainty for both parties regarding the termination terms. It must be carefully drafted to comply with German labor law requirements, including consideration of social security implications and potential unemployment benefit impacts. The agreement typically includes comprehensive provisions covering severance payments, final salary arrangements, benefit treatments, and mutual releases, while ensuring protection of both parties' interests under German jurisdiction.
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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 the termination date and mutual agreement to end the employment relationship
5. Final Salary and Benefits: Details of final regular salary payment, including pro-rata calculations
6. Severance Payment: Amount, calculation basis, and payment terms of the severance package
7. Holiday Entitlement: Settlement of remaining vacation days and any compensation in lieu
8. Release of Claims: Mutual waiver of claims related to the employment relationship
9. Confidentiality: Ongoing obligations regarding company secrets and confidential information
10. Reference Letter: Commitment to provide a qualified reference letter (qualifiziertes Arbeitszeugnis)
11. Final Provisions: Severability clause, written form requirement, and applicable law
1. Garden Leave: Terms of release from duty to work until termination date, if applicable
2. Company Property: List and return procedure for company assets, if any items need to be returned
3. Post-Contractual Non-Compete: Terms of any continuing competition restrictions, if applicable
4. Pension and Benefits: Treatment of company pension rights and other benefits, if applicable
5. Outplacement Support: Details of any career transition services offered
6. Stock Options/Share Rights: Treatment of existing equity compensation, if applicable
7. Works Council Agreement: Reference to works council involvement, if applicable
8. Social Plan Reference: Reference to existing social plan if termination is part of larger restructuring
1. Schedule 1 - Severance Calculation: Detailed calculation of severance payment including factors considered
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Outstanding Benefits Calculation: Detailed calculation of pro-rated bonuses, vacation pay, and other benefits
4. Appendix A - Reference Letter Draft: Agreed form of reference letter to be issued
5. Appendix B - Release Form: Detailed release of claims form if required separately
Relevant legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
Employer
Employment Contract
Final Settlement Date
Garden Leave Period
Group Companies
Notice Period
Parties
Reference Letter
Release Date
Remaining Holiday Entitlement
Severance Payment
Termination Date
Variable Compensation
Works Council
Company Property
Qualifying Reason
Social Security Contributions
Trade Secrets
Business Day
Intellectual Property Rights
Company
Confidential Information
Effective Date
Employee
Employer
Employment Contract
Final Settlement Date
Garden Leave Period
Group Companies
Notice Period
Parties
Reference Letter
Release Date
Remaining Holiday Entitlement
Severance Payment
Termination Date
Variable Compensation
Works Council
Company Property
Qualifying Reason
Social Security Contributions
Trade Secrets
Business Day
Intellectual Property Rights
Clauses
Termination by Mutual Consent
Severance Payment
Final Salary
Holiday Entitlement
Bonus Treatment
Benefits Termination
Company Property Return
Confidentiality
Non-Compete
Non-Solicitation
Reference Letter
Release of Claims
Tax and Social Security
Data Protection
Intellectual Property
Post-Termination Obligations
Garden Leave
Continuing Obligations
Works Council Approval
Final Settlement
Amendment
Governing Law
Severability
Entire Agreement
Counterparts
Severance Payment
Final Salary
Holiday Entitlement
Bonus Treatment
Benefits Termination
Company Property Return
Confidentiality
Non-Compete
Non-Solicitation
Reference Letter
Release of Claims
Tax and Social Security
Data Protection
Intellectual Property
Post-Termination Obligations
Garden Leave
Continuing Obligations
Works Council Approval
Final Settlement
Amendment
Governing Law
Severability
Entire Agreement
Counterparts
Relevant Industries
Technology
Manufacturing
Financial Services
Professional Services
Healthcare
Retail
Construction
Education
Telecommunications
Energy
Transportation
Media and Entertainment
Real Estate
Hospitality
Pharmaceutical
Relevant Teams
Human Resources
Legal
Compliance
Finance
Operations
Executive Leadership
Industrial Relations
Payroll
Employee Relations
Corporate Communications
Relevant Roles
Chief Executive Officer
Human Resources Director
Legal Counsel
Chief Financial Officer
Department Manager
Line Manager
HR Business Partner
Compliance Officer
Operations Director
General Manager
Regional Manager
Managing Director
Head of Department
Senior Manager
Project Manager
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