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Mutual Agreement Resignation for Germany

Mutual Agreement Resignation Template for Germany

A Mutual Agreement Resignation document (Aufhebungsvertrag) under German law is a bilateral agreement between an employer and employee to terminate their employment relationship by mutual consent. This document outlines the terms and conditions of the employment termination, including the termination date, financial settlements, treatment of benefits, and post-employment obligations. It provides legal certainty for both parties while ensuring compliance with German employment law requirements, including consideration of notice periods, severance payments, and social security implications. The agreement must be executed in writing and should clearly demonstrate the voluntary nature of the termination.

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What is a Mutual Agreement Resignation?

The Mutual Agreement Resignation (Aufhebungsvertrag) is a crucial document in German employment law that facilitates the consensual termination of employment relationships. It is typically used when both employer and employee wish to end the employment relationship amicably, outside of standard notice periods or when restructuring occurs. This document type is particularly relevant in situations involving corporate reorganizations, career changes, or when parties seek to avoid potential disputes related to unilateral termination. The agreement must comply with German labor law requirements, including written form requirements under § 623 BGB, and typically includes comprehensive provisions on financial settlements, benefit arrangements, and post-employment obligations. Special attention must be paid to unemployment benefit implications and the voluntary nature of the agreement to ensure its validity under German law.

What sections should be included in a Mutual Agreement Resignation?

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

2. Background: Brief context of the existing employment relationship, including start date and current position

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Clear specification of the employment end date and last working day

5. Financial Settlement: Details of final salary, bonuses, and any severance payment

6. Holiday Entitlement: Settlement of remaining vacation days and any compensation for unused leave

7. Company Property: Requirements for returning company property and handling of work-related documents

8. Confidentiality: Ongoing obligations regarding confidential information

9. Final Settlement: Confirmation that all claims between parties are settled

10. Reference Letter: Agreement regarding the provision of employment reference letter (Arbeitszeugnis)

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

What sections are optional to include in a Mutual Agreement Resignation?

1. Non-Competition: Post-employment competition restrictions, if applicable to the employee's role

2. Benefits Continuation: Any agreement about continuation of specific benefits post-employment

3. Outstanding Bonus Schemes: Treatment of ongoing bonus schemes or long-term incentives

4. Works Council Notice: Reference to works council involvement, if applicable to the organization

5. Outplacement Support: Details of any career transition services offered

6. Company Housing: Arrangements regarding company-provided accommodation, if applicable

7. Insurance Continuation: Provisions for continuing any insurance coverage

8. Stock Options/Shares: Treatment of any employee stock options or share schemes

What schedules should be included in a Mutual Agreement Resignation?

1. Schedule 1: Financial Settlement Calculation: Detailed breakdown of all financial payments including salary, severance, and other benefits

2. Schedule 2: Company Property List: Itemized list of company property to be returned

3. Schedule 3: Benefit Summary: Summary of benefits and their treatment post-termination

4. Appendix A: Data Privacy Notice: Information about handling of personal data post-employment

5. Appendix B: Reference Letter Draft: Draft or outline of the agreed employment reference letter

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






















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Relevant Industries

Banking and Financial Services

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Relevant Roles

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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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