Document background
The Employee Severance Letter is a crucial document used in German employment relationships when terminating employment through mutual agreement or unilateral termination with severance. It complies with German labor law requirements, including the Protection Against Dismissal Act and the German Civil Code. This document is typically used when companies need to document employment terminations with severance payments, whether due to restructuring, redundancy, or mutual separation agreements. The letter includes essential details such as the termination date, severance amount, final salary arrangements, benefit treatments, and ongoing obligations. It serves as a legally binding document that protects both employer and employee interests while ensuring compliance with German employment regulations, tax laws, and social security requirements.
