The Termination Letter Due To Cost Cutting is a crucial document used in German employment law when companies need to reduce their workforce for economic reasons. It must comply with strict German legal requirements, including the K眉ndigungsschutzgesetz and BGB provisions, which mandate specific content and format. The document is utilized when companies undergo restructuring, face financial difficulties, or implement cost reduction programs. It must clearly state the business reasons for termination, respect notice periods, and demonstrate consideration of social selection criteria for companies with more than 10 employees. The letter should be drafted with careful attention to legal requirements, as procedural errors can render the termination invalid under German law. Essential components include the formal termination declaration, notice period specification, business reasoning, and relevant employee-specific details.
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1. Header Information: Company letterhead, date, employee's full name and address
2. Subject Line: Clear indication that this is a termination notice (K眉ndigung)
3. Opening Statement: Direct statement of termination with specific end date and notice period reference
4. Business Reason: Clear explanation of the cost-cutting measures and business necessity for the termination
5. Notice Period Details: Specific information about the notice period and last working day
6. Return of Company Property: Request for return of all company property by the last working day
7. Final Payment Information: Information about final salary, vacation days, and other outstanding payments
8. Signature Block: Space for authorized representative's signature and company stamp
1. Works Council Reference: Statement confirming works council consultation - required if works council exists
2. Social Selection Criteria: Explanation of social selection process - needed for companies with > 10 employees
3. Special Protection Notice: Acknowledgment of special protection status (if applicable for pregnant employees, disabled persons, etc.)
4. Outplacement Services: Information about any career transition support being offered
5. Garden Leave: Information about garden leave if employee is being released from duty during notice period
6. Reference Letter Offer: Mention of the employee's right to receive a reference letter
1. Social Selection Documentation: Details of social selection criteria application and results
2. Severance Calculation: If offered, detailed calculation of any severance payment
3. Outstanding Benefits Statement: Detailed list of remaining vacation days, overtime, and other benefits
4. Company Property List: Itemized list of company property to be returned
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Professional Services
Construction
Telecommunications
Energy
Transportation
Education
Hospitality
Media and Entertainment
Real Estate
Automotive
Relevant Teams
Human Resources
Legal
Compliance
Finance
Operations
Management
Administration
Corporate Services
Employee Relations
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Employment Lawyer
HR Business Partner
Compliance Officer
Department Manager
Managing Director
Chief Financial Officer
HR Administrator
Personnel Officer
Chief Executive Officer
Operations Manager
General Counsel
Finance Director
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