The Standard Termination Agreement (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to end their employment relationship by mutual consent. It serves as an alternative to unilateral termination and is commonly used in situations involving restructuring, voluntary departures, or resolving employment disputes. The agreement must carefully balance the interests of both parties while ensuring compliance with German labor law requirements, including mandatory notice periods, severance calculations, and social security considerations. This document typically includes comprehensive provisions regarding financial settlements, continuing obligations, and release of claims, while also addressing specific German legal requirements such as qualified reference letters (qualifiziertes Arbeitszeugnis) and works council involvement where applicable.
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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 including start date and current position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear statement of the employment relationship end date and last working day
5. Financial Settlement: Details of final salary, pro-rated bonus, vacation pay, and any severance payment
6. Release of Claims: Mutual release of all claims arising from the employment relationship
7. Confidentiality: Ongoing obligations regarding company secrets and confidential information
8. Return of Company Property: Obligation to return all company property by specified date
9. Reference Letter: Employer's obligation to provide a qualified reference letter
10. Final Provisions: Standard closing provisions including severability clause and governing law
1. Garden Leave: Terms of release from work duties until termination date, if applicable
2. Post-Contractual Non-Compete: Terms of any continuing non-compete obligations and compensation
3. Outplacement Services: Details of any career transition support provided by employer
4. Company Housing: Arrangements regarding company-provided accommodation
5. Company Car: Arrangements for return or purchase of company car
6. Stock Options/Share Awards: Treatment of outstanding equity compensation
7. Pension Arrangements: Special provisions regarding company pension schemes
8. Works Council Agreement: Reference to works council involvement where applicable
1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of all financial components including salary, bonus, and severance
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Outstanding Vacation Days Calculation: Calculation of remaining vacation days and corresponding compensation
4. Appendix A - Data Privacy Declaration: Required declarations regarding personal data processing post-employment
5. Appendix B - Benefits Summary: Overview of treatment of various benefits post-termination
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