A Cancellation Offer Letter is a crucial document in German employment law used when an employer wishes to propose a mutual termination of employment instead of a unilateral dismissal. This approach often provides more flexibility and can help avoid potential legal disputes that might arise from regular termination notices. The document must comply with strict German legal requirements, including written form requirements under the Civil Code (BGB). It typically offers more favorable terms than a standard termination, often including severance payments, positive references, and garden leave provisions. The Cancellation Offer Letter is particularly useful in scenarios where a clean break is desired, during restructuring, or when both parties wish to avoid the notice period requirements of standard termination.
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1. Header and Date: Company letterhead, date, and reference information
2. Recipient Details: Employee's full name and address
3. Subject Line: Clear indication that this is a cancellation offer
4. Opening Statement: Reference to current employment and intention to offer mutual termination
5. Termination Date: Specific proposed date for the end of employment
6. Financial Settlement: Details of any severance pay or final salary arrangements
7. Notice Period Treatment: How the remaining notice period will be handled
8. Return of Company Property: Requirements for returning company assets
9. Confidentiality Obligations: Reminder of ongoing confidentiality duties
10. Acceptance Period: Deadline for accepting the offer
11. Signature Block: Space for employer signature and employee acceptance
1. Garden Leave: Include when employee is to be released from work duties during notice period
2. Reference Letter: Include when offering to provide a specific type of reference
3. Ongoing Benefits: Include when certain benefits will continue post-termination
4. Non-Compete Provisions: Include when existing non-compete clauses need to be addressed
5. Legal Advice: Include when recommending employee seeks legal counsel
6. Works Council: Include when works council involvement needs to be mentioned
1. Calculation of Final Payment: Detailed breakdown of severance pay, remaining salary, and other payments
2. List of Company Property: Itemized list of company assets to be returned
3. Benefits Summary: Overview of any continuing benefits or special arrangements
4. Release Agreement: Mutual release of claims template to be signed upon acceptance
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