The Resignation Agreement (Aufhebungsvertrag) is a critical document used in German employment law when both employer and employee agree to terminate their employment relationship by mutual consent. This approach offers advantages over unilateral termination, providing flexibility in setting the termination date and conditions while avoiding potential dismissal protection proceedings. The agreement typically includes provisions for final payments, benefit settlements, confidentiality obligations, and release of claims. It must comply with German employment law requirements, including the Civil Code (BGB) and Protection Against Unfair Dismissal Act (KSchG). Particular attention must be paid to employee protection provisions, social security implications, and any works council rights. This document is commonly used in corporate restructuring, voluntary departures, or when seeking an amicable resolution to employment challenges.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship including start date and current position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear statement of when the employment relationship will end
5. Mutual Agreement to Terminate: Express declaration that both parties agree to terminate the employment relationship
6. Final Salary and Benefits: Details of final salary payment, including pro-rated bonuses and outstanding vacation days
7. Release of Claims: Mutual release of employment-related claims, subject to statutory limitations
8. Confidentiality: Ongoing obligations regarding confidential information
9. Social Security and Insurance: Confirmation of handling of social security and insurance matters
10. Reference Letter: Agreement regarding the provision and content of the reference letter (Arbeitszeugnis)
11. Final Provisions: Standard closing provisions including governing law, severability, and entire agreement clause
12. Execution: Signature block and date of signing
1. Garden Leave: Terms of any garden leave period until the termination date
2. Company Property: List and return process for company property, including timing and procedure
3. Post-termination Restrictions: Any agreed non-compete or non-solicitation provisions, if applicable
4. Severance Payment: Terms and conditions of any severance payment, including amount and payment date
5. Ongoing Projects: Handover process for ongoing projects and responsibilities
6. References and Communications: Agreed approach to external and internal communications about the departure
7. Stock Options/Benefits: Treatment of outstanding stock options or other long-term benefits
8. Training Costs Repayment: Handling of any training cost repayment obligations
9. Legal Costs: Agreement on payment of legal costs for reviewing the agreement
1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of final payment including salary, vacation pay, and any other benefits
2. Schedule 2 - Company Property Inventory: List of all company property to be returned
3. Schedule 3 - Outstanding Stock Options: Details of any outstanding stock options or equity-based compensation
4. Appendix A - Form of Reference Letter: Draft or agreed form of reference letter (Arbeitszeugnis)
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