Document background
The Mutual Agreement to Terminate Employment (Aufhebungsvertrag) is a critical document used in German employment law when both employer and employee agree to end their employment relationship by mutual consent. This approach differs from unilateral termination and offers more flexibility in terms of separation conditions while potentially avoiding the strict dismissal protection regulations. The document is typically used when both parties wish to part ways amicably, during restructuring processes, or when alternative arrangements to standard termination are desired. It must comply with German employment law requirements, including written form requirements under § 623 BGB, and should address all aspects of the employment termination, from final payments to continuing obligations. The agreement is particularly valuable in situations where a quick and mutually beneficial separation is desired, or when the standard notice periods would not serve either party's interests.
