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Early Termination Of Employment Contract Letter Template for Germany

An Early Termination of Employment Contract Letter under German law is a formal document that initiates the process of ending an employment relationship before its planned termination date. This document must comply with strict German labor law requirements, including adherence to statutory notice periods, works council consultation where applicable, and proper documentation of all termination terms. The letter must include specific legally required elements such as clear termination declaration, last working day, and details about final payments and company property return. It serves as a crucial legal document that protects both employer and employee interests while ensuring compliance with German employment legislation.

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What is a Early Termination Of Employment Contract Letter?

The Early Termination Of Employment Contract Letter is a critical document used in German employment law when either the employer or employee initiates the early conclusion of an employment relationship. This document must strictly adhere to German labor law requirements, including the German Civil Code (BGB), Protection Against Dismissal Act (KSchG), and Works Constitution Act (BetrVG) where applicable. It is typically used in situations where employment needs to end before a fixed term expires or where ongoing employment is being terminated with notice. The letter must include specific legally mandated information such as the termination date, notice period compliance, final payment details, and property return arrangements. This document serves as legal proof of proper termination procedures and helps protect both parties' rights while ensuring compliance with German employment regulations.

What sections should be included in a Early Termination Of Employment Contract Letter?

1. Sender and Recipient Details: Full company details as sender and employee's full name and address as recipient, including position title

2. Date: The date of the letter, which is crucial for calculating notice periods and deadlines

3. Subject Line: Clear indication that this is a termination letter (K眉ndigung des Arbeitsvertrages)

4. Termination Declaration: Clear and unambiguous statement of employment termination, referencing the employment contract date

5. Last Working Day: Specific mention of the last day of employment, taking into account the statutory notice period

6. Return of Company Property: List of company items to be returned before the last working day

7. Final Payment Details: Information about the final salary, outstanding vacation days, and other mandatory payments

8. Reference Letter: Confirmation that a reference letter (Arbeitszeugnis) will be provided

9. Closing: Formal closing including signature block for authorized representative

What sections are optional to include in a Early Termination Of Employment Contract Letter?

1. Garden Leave: Used when the employee is to be released from work duties during the notice period while maintaining compensation

2. Severance Payment: Include when a severance package is being offered as part of the termination agreement

3. Non-Compete Reminder: Include if the employment contract contains post-contractual non-compete obligations

4. Works Council Reference: Required if there is a works council and they were consulted about the termination

5. Handover Instructions: Include when specific project or responsibility handover is required

6. Outstanding Bonus/Commission: Include when there are variable compensation elements to be addressed

7. Benefits Continuation: Used when discussing any benefits that continue post-employment or special arrangements

What schedules should be included in a Early Termination Of Employment Contract Letter?

1. Calculation of Final Payment: Detailed breakdown of final salary, vacation pay, and other entitlements

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

3. Handover Documentation: If relevant, detailed list of projects and responsibilities requiring handover

4. Employee Benefits Statement: Summary of benefits status and post-employment continuation details if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Cost

Free to use

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