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Employment Discrimination Settlement Agreement for Germany

Employment Discrimination Settlement Agreement Template for Germany

A comprehensive legal document governed by German law that formalizes the resolution of an employment discrimination dispute between an employer and employee. The agreement is structured in accordance with the German General Equal Treatment Act (AGG) and related employment laws, setting out the terms of settlement, including compensation, confidentiality provisions, and mutual releases. It addresses specific requirements under German labor law, including provisions for reference letters (Arbeitszeugnis) and tax implications, while ensuring compliance with data protection regulations (GDPR/BDSG). The document serves to definitively resolve discrimination claims while protecting both parties' interests under German legal framework.

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Employment Discrimination Settlement Agreement

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What is a Employment Discrimination Settlement Agreement?

The Employment Discrimination Settlement Agreement is a crucial legal document used in German employment law contexts when resolving discrimination claims in the workplace. It is specifically designed to comply with the German General Equal Treatment Act (AGG), the Civil Code (BGB), and other relevant employment regulations. This document becomes necessary when an employee has raised discrimination claims based on protected characteristics such as age, gender, race, religion, disability, sexual orientation, or ethnic origin, and both parties have agreed to settle the matter out of court. The agreement typically includes detailed terms of settlement, release of claims, confidentiality provisions, and specific German law requirements such as reference letter terms and tax implications. It serves as a binding legal document that provides certainty and closure for both parties while ensuring compliance with German employment law standards and data protection requirements.

What sections should be included in a Employment Discrimination Settlement Agreement?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant employment details

2. Background: Brief factual summary of the employment relationship, the discrimination claim, and events leading to the settlement

3. Definitions: Key terms used throughout the agreement, including 'Discrimination Claim', 'Settlement Sum', and other relevant terminology

4. Settlement Payment: Details of the compensation amount, payment method, timing, and tax treatment in accordance with German tax law

5. Release of Claims: Comprehensive release of all claims related to the discrimination incident and employment relationship, specifically referencing AGG claims

6. Confidentiality: Provisions regarding confidentiality of the settlement terms and underlying discrimination claim, in compliance with GDPR/BDSG

7. Reference Letter: Terms regarding the issuance of a qualified reference letter (qualifiziertes Arbeitszeugnis) as required by German law

8. Tax and Social Security: Clauses addressing tax implications and social security contributions related to the settlement payment

9. Final Provisions: Standard closing provisions including severability, governing law, and jurisdiction clauses

What sections are optional to include in a Employment Discrimination Settlement Agreement?

1. Continuing Employment Terms: Required if the employment relationship will continue, outlining any modifications to existing terms

2. Termination Agreement: Needed if the employment relationship will end as part of the settlement, including specific termination date and terms

3. Non-Disparagement: Additional provisions preventing parties from making negative statements about each other

4. Works Council Approval: Required if works council involvement is necessary under BetrVG

5. Future Reference Requests: Specific provisions about handling future employment references and inquiries

6. Training and Policy Changes: Included when the settlement requires workplace policy modifications or additional training

7. Reinstatement Waiver: Needed when explicitly waiving any right to reinstatement or future employment

What schedules should be included in a Employment Discrimination Settlement Agreement?

1. Schedule 1: Settlement Payment Calculation: Detailed breakdown of the settlement sum, including any salary, damages, and statutory payments

2. Schedule 2: Reference Letter: Agreed form of the employment reference letter

3. Schedule 3: Tax Calculation: Breakdown of tax implications and social security deductions

4. Schedule 4: Existing Employment Contract: Copy of the existing employment contract if referenced in the settlement

5. Schedule 5: Release Form: Formal release document if required separate from main agreement

6. Schedule 6: Workplace Policy Amendments: Any agreed changes to workplace policies or procedures resulting from the settlement

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 | Serial Founder & Legal AI Author

Jurisdiction

Germany

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Retail

Professional Services

Education

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Hospitality

Transportation

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Media and Entertainment

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Public Sector

Non-profit Organizations

Relevant Teams

Human Resources

Legal

Compliance

Executive Leadership

Employee Relations

Diversity and Inclusion

Labor Relations

Corporate Communications

Finance

Risk Management

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Employment Lawyer

Compliance Officer

Chief Human Resources Officer

Personnel Manager

Employee Relations Manager

Diversity and Inclusion Officer

Chief Legal Officer

HR Business Partner

Labor Relations Manager

Chief Executive Officer

Managing Director

Department Manager

Line Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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