A Mutual Separation Agreement is a critical document used when an employer and employee in Austria agree to end their employment relationship by mutual consent. This type of agreement is particularly relevant when parties wish to avoid the formal termination process and negotiate terms that benefit both sides. The document must comply with Austrian labor law requirements, including the Employment Contract Law Adaptation Act (AVRAG) and the Austrian Civil Code (ABGB). It typically includes comprehensive provisions covering separation payments, benefit treatments, and mutual releases, while also addressing specific Austrian legal requirements such as the mandatory written form and potential works council involvement. The agreement is commonly used during corporate restructurings, leadership changes, or when parties seek an amicable end to the employment relationship while minimizing legal risks.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers
2. Background: Brief history of the employment relationship, including start date and current position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when the employment relationship will end
5. Final Salary and Benefits: Details of the final regular salary payment and treatment of outstanding benefits
6. Separation Payment: Amount, calculation basis, and payment terms of any separation payment
7. Holiday Entitlement: Settlement of remaining vacation days and any compensation for unused leave
8. Company Property: Requirements and timeline for returning company property
9. Confidentiality: Ongoing obligations regarding confidential information
10. Full and Final Settlement: Mutual release of claims and waiver of rights
11. Governing Law: Confirmation that Austrian law governs the agreement
12. Execution: Signature blocks and date of agreement
1. Garden Leave: Terms of any garden leave period before the termination date
2. Post-Contractual Restrictions: Non-compete and non-solicitation clauses, if applicable and agreed
3. Reference: Agreement on the content and format of employment references
4. Ongoing Benefits: Any benefits that will continue post-employment
5. Handover: Specific requirements for transitioning work responsibilities
6. Tax Indemnity: Provisions regarding tax treatment of payments and related indemnities
7. Legal Costs: Agreement on payment of legal fees for reviewing the agreement
8. Press Announcement: Agreed communication regarding the separation
9. Works Council Approval: Reference to works council involvement where required
1. Schedule 1 - Calculation of Payments: Detailed breakdown of all payments including salary, severance, and holiday pay
2. Schedule 2 - Company Property: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Details of benefit entitlements and their treatment post-termination
4. Appendix A - Release of Claims: Detailed release of claims language as required under Austrian law
5. Appendix B - Reference Letter: Agreed form of employment reference (Dienstzeugnis)
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Information Technology
Manufacturing
Professional Services
Healthcare
Retail
Construction
Education
Telecommunications
Energy
Real Estate
Hospitality
Media and Entertainment
Logistics and Transportation
Pharmaceuticals
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Administration
Research and Development
Customer Service
Product Development
Corporate Communications
Compliance
Risk Management
Facilities Management
Relevant Roles
Chief Executive Officer
Managing Director
Human Resources Director
Legal Counsel
Department Head
Senior Manager
Project Manager
Finance Director
Operations Manager
Sales Director
Technical Lead
Senior Engineer
Marketing Manager
Account Manager
Administrative Manager
Regional Manager
Branch Manager
Team Leader
Department Supervisor
Executive Assistant
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