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Termination Letter With Severance for Germany

Termination Letter With Severance Template for Germany

A formal employment termination document governed by German labor law that combines a legally compliant termination notice with severance payment terms. This document must adhere to strict German legal requirements including proper notice periods under the German Civil Code (BGB), compliance with the Protection Against Dismissal Act (KSchG), and appropriate consultation with works councils where applicable. It outlines the terms of employment termination, specifies the severance amount and payment conditions, addresses outstanding obligations, and includes provisions for final settlements, company property return, and employment references.

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What is a Termination Letter With Severance?

The Termination Letter With Severance is a crucial document used in German employment relationships when ending employment with a negotiated severance package. It's typically used in situations of mutual separation, corporate restructuring, or when the employer wishes to minimize legal risks associated with termination. The document must comply with German labor law requirements, including the German Civil Code (BGB), Protection Against Dismissal Act (KSchG), and Works Constitution Act (BetrVG). It serves as a formal record of the termination agreement, incorporating both the official notice of employment termination and the detailed terms of the severance payment. This document is particularly important in Germany due to the strong employee protection laws and the common practice of providing severance payments to mitigate potential legal disputes.

What sections should be included in a Termination Letter With Severance?

1. Header with Full Address Details: Complete contact information of both employer and employee, including names, addresses, and date

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

3. Termination Declaration: Clear and unambiguous statement of employment termination, citing the specific termination date

4. Notice Period Confirmation: Specification of the notice period and its calculation according to employment contract and applicable law

5. Severance Payment Details: Specific amount of severance payment, calculation basis, and payment terms

6. Final Working Day Arrangements: Specification of the last working day and any special arrangements

7. Return of Company Property: List of company property to be returned and by when

8. Final Settlement: Information about final salary, vacation days, and other outstanding payments

9. References and Certificates: Confirmation of providing employment references (Arbeitszeugnis)

10. Closing and Signatures: Formal closing, date, and signature lines for both parties

What sections are optional to include in a Termination Letter With Severance?

1. Garden Leave Provisions: Include when the employee is to be released from work duties during the notice period

2. Non-Compete Reminder: Include when existing employment contract contains post-contractual non-compete obligations

3. Works Council Reference: Include when works council was consulted regarding the termination

4. Release and Waiver Clause: Include when mutual settlement of all claims is desired

5. Confidentiality Obligations: Include when emphasizing ongoing confidentiality obligations is necessary

6. Reference Letter Type: Include when specifying the type of reference letter requested (qualified or simple)

What schedules should be included in a Termination Letter With Severance?

1. Severance Calculation Schedule: Detailed breakdown of severance payment calculation

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

3. Final Settlement Calculation: Detailed calculation of final payments including salary, vacation compensation, and other benefits

4. Release Agreement: Detailed terms of mutual release of claims, if applicable

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

Document Type

Termination Letter

Cost

Free to use

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