A Finish Contract Letter To Employer, known in Germany as an Aufhebungsvertrag, is utilized when both employer and employee agree to end their employment relationship by mutual consent. This document is particularly relevant in situations where a clean, amicable separation is desired, avoiding the potential complications of unilateral termination. It's commonly used in corporate restructuring, career transitions, or when alternative employment arrangements have been secured. The document must strictly comply with German employment law requirements, including written form requirements under the BGB, social security considerations, and works council involvement where applicable. It typically includes essential elements such as termination date, financial settlements, remaining vacation days, and company property returns. This type of agreement offers legal certainty to both parties while potentially avoiding notice periods associated with standard termination procedures.
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1. Employee and Employer Details: Full legal names and addresses of both parties, employee ID number, and current position
2. Current Employment Relationship: Brief reference to the existing employment contract, including its date and any subsequent amendments
3. Mutual Termination Agreement: Clear statement that both parties agree to terminate the employment relationship by mutual consent
4. Termination Date: Specific date when the employment relationship will end
5. Final Salary and Benefits: Details of the final regular salary payment and handling of remaining benefits
6. Holiday Entitlement: Settlement of remaining vacation days or compensation for unused leave
7. Release from Duties: If applicable, immediate release from work duties while maintaining salary until the termination date
8. Final Settlement: Any severance payment or special compensation agreed upon
9. Signatures: Space for dated signatures of both parties
1. Company Property Return: List of company property to be returned and deadline - include when employee has company assets
2. Confidentiality Obligations: Reminder of ongoing confidentiality duties - include for sensitive positions
3. Reference Letter: Agreement regarding the issuance of a reference letter - include when specifically negotiated
4. Non-Competition Clause: Any agreements about post-employment competition restrictions - include for senior positions
5. Social Security Notice: Information about unemployment benefit registration requirements - include when employee requests
6. Works Council Approval: Reference to works council consultation - include when company has works council
7. Outstanding Claims: Settlement of any pending expense claims or bonuses - include when applicable
1. Final Payment Calculation: Detailed breakdown of final salary, benefits, and any severance payment
2. Company Property Inventory: List of company items to be returned with their condition status
3. Bonus Calculation: If applicable, detailed calculation of pro-rated bonus or commission payments
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