The Employer Separation Agreement serves as a crucial document when employment relationships in Austria are terminated by mutual consent. It provides a legally compliant framework under Austrian labor law for documenting the terms of separation, protecting both employer and employee interests. This agreement is particularly important given Austria's strict employment protection regulations and mandatory severance pay requirements. The document typically comes into play during voluntary separations, restructuring, or negotiated exits, ensuring all legal obligations are met, including proper notice periods, financial settlements, and ongoing obligations. The agreement must comply with various Austrian employment laws, including the Labor Law Act (Arbeitsrecht), Salaried Employees Act (Angestelltengesetz), and Severance Pay Act (Abfertigungsrecht), while also addressing practical aspects such as handover procedures and final settlements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers
2. Background: Brief context of the employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement, including Termination Date, Final Settlement, etc.
4. Termination of Employment: Formal statement of employment termination, specifying the last working day and end of employment relationship
5. Final Payment and Benefits: Details of final salary, pro-rated bonuses, vacation pay, and other entitlements
6. Severance Payment: Specification of severance payment (Abfertigung) amount and payment terms
7. Company Property: Requirements for returning company property and documents
8. Confidentiality Obligations: Ongoing obligations regarding confidential information
9. Release of Claims: Mutual release of claims, subject to Austrian law restrictions
10. Tax and Social Security: Treatment of payments for tax and social security purposes
11. Final Settlement: Confirmation that the agreement represents full and final settlement
12. Governing Law: Confirmation of Austrian law as governing law and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Post-Employment Restrictions: Non-compete and non-solicitation provisions, if applicable and agreed (subject to Austrian law restrictions)
2. Reference Letter: Terms regarding the provision of a reference letter (Dienstzeugnis), if not provided simultaneously
3. Stock Options/Benefits: Treatment of outstanding stock options or long-term benefits, if applicable
4. Garden Leave: Terms of garden leave period if employee is not required to work during notice period
5. Ongoing Cooperation: Terms for employee assistance in handover or future inquiries
6. Legal Fees: Agreement on payment of legal fees for review of the agreement
7. Works Council Approval: Reference to works council approval if required
8. Insurance Continuation: Details about continuation or termination of insurance benefits
9. Outplacement Support: Terms of any career transition or outplacement support offered
1. Schedule 1 - Payment Calculation: Detailed calculation of final payment, including salary, severance, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Outstanding Benefits: List of any outstanding benefits and their treatment
4. Schedule 4 - Reference Letter: Draft or final version of the reference letter (Dienstzeugnis)
5. Schedule 5 - Handover Plan: Detailed plan for handover of responsibilities and ongoing projects
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