The Position Elimination Letter is a crucial document in German employment law, used when an organization needs to terminate employment due to structural changes, reorganization, or economic necessity. It must be drafted in compliance with German labor laws, which provide strong employee protections and require specific justifications for termination. The document should include clear business reasoning, adherence to notice periods, consideration of social selection criteria, and information about employee rights. Under German law, position elimination must be justified by compelling business reasons and cannot be used as a pretext for personal termination. The letter typically forms part of a larger redundancy process that may include works council consultation, social plan negotiations, and consideration of alternative employment options. It's essential to ensure the Position Elimination Letter meets all formal requirements to avoid legal challenges and potential invalidation of the termination.
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1. Formal Opening and Employee Information: Employee's name, position, employment duration, and formal date of the letter
2. Notice of Position Elimination: Clear statement that the position is being eliminated and the effective date
3. Business Justification: Explanation of the business reasons for the elimination (restructuring, economic conditions, etc.)
4. Notice Period: Specification of the notice period as per German law and employment contract
5. Final Working Day: Clear statement of the employee's last working day
6. Return of Company Property: Instructions regarding the return of company equipment, documents, and other property
7. Final Payment Details: Information about final salary, accrued vacation days, and other outstanding payments
8. Reference Letter Rights: Information about the employee's right to receive a reference letter (Arbeitszeugnis)
1. Severance Package: Details of any severance payment offered, used when the company provides compensation beyond legal requirements
2. Alternative Position Options: Information about any available alternative positions within the company, required if such positions exist
3. Outplacement Support: Details of any career transition services offered by the company
4. Works Council Consultation: Reference to works council consultation, required if a works council exists
5. Social Selection Criteria: Explanation of social selection criteria if multiple positions are affected
6. Release Agreement: Terms of a mutual separation agreement if offered instead of unilateral termination
1. Severance Calculation Sheet: Detailed calculation of severance payment if applicable
2. Information on Unemployment Benefits: Standard information sheet about registering for unemployment benefits
3. Handover Protocol Template: Template for documenting the handover of work responsibilities and company property
4. Social Plan Summary: Summary of social plan measures if part of a larger restructuring
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