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The Termination Letter With Severance is a crucial document used in German employment relationships when ending employment with a negotiated severance package. It's typically used in situations of mutual separation, corporate restructuring, or when the employer wishes to minimize legal risks associated with termination. The document must comply with German labor law requirements, including the German Civil Code (BGB), Protection Against Dismissal Act (KSchG), and Works Constitution Act (BetrVG). It serves as a formal record of the termination agreement, incorporating both the official notice of employment termination and the detailed terms of the severance payment. This document is particularly important in Germany due to the strong employee protection laws and the common practice of providing severance payments to mitigate potential legal disputes.

1. Header with Full Address Details: Complete contact information of both employer and employee, including names, addresses, and date

2. Subject Line: Clear indication that this is a termination letter (Kündigung des Arbeitsverhältnisses)

3. Termination Declaration: Clear and unambiguous statement of employment termination, citing the specific termination date

4. Notice Period Confirmation: Specification of the notice period and its calculation according to employment contract and applicable law

5. Severance Payment Details: Specific amount of severance payment, calculation basis, and payment terms

6. Final Working Day Arrangements: Specification of the last working day and any special arrangements

7. Return of Company Property: List of company property to be returned and by when

8. Final Settlement: Information about final salary, vacation days, and other outstanding payments

9. References and Certificates: Confirmation of providing employment references (Arbeitszeugnis)

10. Closing and Signatures: Formal closing, date, and signature lines for both parties