The Employee Deed of Release (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This document is typically employed when parties wish to end the employment relationship outside of standard notice periods or when a negotiated departure is preferred over unilateral termination. The agreement must comply with German labor law requirements, including provisions of the B眉rgerliches Gesetzbuch (BGB) and K眉ndigungsschutzgesetz (KSchG). It covers essential elements such as termination date, severance payments, benefit arrangements, and mutual releases, while ensuring protection of both parties' rights. The document is particularly relevant in corporate restructuring, voluntary departures, or when resolving potential employment disputes amicably.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
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 agreement on the end date of employment and last working day
5. Final Payments: Details of salary, outstanding vacation days, and other contractual payments due until the termination date
6. Severance Payment: Amount, calculation basis, and payment terms of any severance payment
7. Company Property: Requirements and timeline for returning company property
8. Confidentiality Obligations: Ongoing confidentiality obligations post-employment
9. Mutual Release: Mutual waiver of claims between parties related to the employment relationship
10. Tax Treatment: Clarity on tax handling of payments and responsibilities
11. Reference Letter: Agreement regarding the provision of a reference letter (Arbeitszeugnis)
12. Final Provisions: Standard closing provisions including governing law, severability, and entire agreement clause
13. Execution: Signature blocks and date of agreement
1. Garden Leave: Terms of garden leave if applicable for the remaining employment period
2. Post-Contractual Non-Compete: Terms of any post-employment competition restrictions and compensation
3. Ongoing Benefits: Any benefits that will continue post-employment (e.g., insurance, company car)
4. Share Options/Benefits: Treatment of existing share options, bonus schemes, or other benefits
5. Legal Costs: Agreement on payment of legal costs for reviewing the agreement
6. Communications: Agreed internal and external communications regarding the departure
7. Outplacement Support: Details of any career transition services provided
8. Pension Arrangements: Special provisions regarding pension or retirement benefits
9. Works Council Agreement: Reference to works council consultation if applicable
1. Schedule 1 - Payment Calculation: Detailed breakdown of all final payments including salary, severance, and benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Detailed overview of treatment of all benefits and entitlements
4. Appendix A - Reference Letter Draft: Agreed form of reference letter (Arbeitszeugnis)
5. Appendix B - Handover Plan: Detailed plan for handover of responsibilities before departure
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