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Cancellation Of Employment Contract Template for Germany

A formal document governed by German labor law that serves to officially terminate an employment relationship between an employer and employee. This document must comply with strict German legal requirements, including proper notice periods as specified in the German Civil Code (BGB) and the Protection Against Dismissal Act (Kündigungsschutzgesetz). It contains essential information such as the termination date, notice period compliance, final settlement details, and provisions for company property return. The document must be in written form and signed by an authorized representative of the employer, meeting all formal requirements under German employment law.

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What is a Cancellation Of Employment Contract?

The Cancellation Of Employment Contract (Kündigung des Arbeitsvertrages) is a crucial document in German employment law that formalizes the termination of an employment relationship. It is used when either the employer wishes to terminate an employee's contract (with proper cause or during probationary period) or in cases of mutual agreement termination. The document must strictly comply with German labor law requirements, including the German Civil Code (BGB), Protection Against Dismissal Act, and Works Constitution Act where applicable. It must include specific elements such as clear termination declaration, notice periods, final settlement terms, and company property arrangements. This document is particularly important as German employment law provides strong employee protections, making proper documentation and compliance with formal requirements essential to ensure legal validity of the termination.

What sections should be included in a Cancellation Of Employment Contract?

1. Header Details: Company letterhead, date, and recipient's address details

2. Subject Line: Clear indication that this is a termination notice (Kündigung des Arbeitsvertrages)

3. Main Declaration: Clear and unambiguous statement of employment contract termination

4. Termination Date: Specific mention of the last day of employment, considering notice periods

5. Legal Basis: Reference to relevant contract clauses or legal provisions justifying the termination

6. Notice Period Confirmation: Confirmation that statutory or contractual notice period is being observed

7. Final Settlement: Information about final salary payment and outstanding amounts

8. Company Property: Request for return of company property (keys, devices, documents, etc.)

9. Signature Block: Space for authorized signatory and company stamp

What sections are optional to include in a Cancellation Of Employment Contract?

1. Garden Leave: Section releasing employee from duty to work during notice period, if applicable

2. Severance Payment: Details of any severance payment offered, used when part of a mutual agreement termination

3. Reference Letter: Mention of the provision of a reference letter, if being provided

4. Non-Compete Reminder: Reminder of existing non-compete obligations, if applicable

5. Works Council Reference: Reference to works council consultation, required if works council exists

6. Reason for Termination: Explanation of termination reasons, optional unless required by law or contract

7. Outstanding Vacation: Handling of remaining vacation days or compensation

8. Benefits Termination: Details about termination of benefits, insurance coverage, etc.

What schedules should be included in a Cancellation Of Employment Contract?

1. Calculation of Final Payment: Detailed breakdown of final salary, vacation compensation, and other payments

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

3. Severance Calculation: If applicable, detailed calculation of severance payment

4. Handover Protocol: Template for documenting the handover of ongoing projects and responsibilities

Authors

Alex Denne

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

Jurisdiction

Germany

Publisher

Genie AI

Cost

Free to use

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