The Departure Letter (Aufhebungsvertrag) is a crucial document in German employment law used when an employer and employee agree to terminate their employment relationship by mutual consent. This approach often presents advantages over unilateral termination, offering both parties more flexibility in negotiating terms while avoiding potential legal disputes. The document typically addresses key aspects such as the termination date, final salary payments, treatment of bonuses and benefits, holiday entitlements, and company property return. Under German law, such letters must comply with specific legal requirements, including written form requirements under §623 BGB and consideration of mandatory notice periods. The document may also need to account for works council rights and social security implications. It's particularly useful in scenarios where a clean break is desired or when the statutory notice periods or dismissal protection regulations make unilateral termination challenging.
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1. Letterhead and Date: Company letterhead including full legal entity name, address, and current date
2. Employee Details: Full name and address of the employee
3. Subject Line: Clear indication that this is a mutual termination agreement (Aufhebungsvertrag)
4. Termination Statement: Clear statement of the mutual agreement to terminate the employment relationship
5. Effective Date: Specific date when the employment relationship will end
6. Final Salary: Confirmation of payment of final salary and timing
7. Holiday Entitlement: Statement regarding remaining holiday entitlement and compensation
8. Return of Company Property: Requirements and deadline for returning company property
9. References: Confirmation of providing a reference letter (Arbeitszeugnis)
10. Final Release: Mutual release from claims related to the employment relationship
11. Signatures: Space for dated signatures of both parties
1. Garden Leave: Used when employee is released from duty until termination date while maintaining employment status
2. Severance Payment: Include when a severance payment (Abfindung) has been agreed upon
3. Post-contractual Non-compete: Used when maintaining or waiving existing non-compete obligations
4. Confidentiality: Additional confidentiality obligations beyond standard requirements
5. Outstanding Bonus/Commission: Include when addressing pending variable compensation
6. Benefits Continuation: Used when certain benefits will continue post-employment
7. Legal Representation: Include when employee has had legal counsel review the agreement
8. Works Council: Reference to works council involvement where applicable
1. Payment Schedule: Detailed breakdown of final payments including salary, severance, and other compensations
2. Company Property List: Itemized list of company property to be returned
3. Benefit Details: Detailed information about any continuing benefits or insurance coverage
4. Outstanding Projects: List of projects or responsibilities to be handed over before departure
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