Document background
The Early Termination Contract is utilized when both employer and employee agree to end their employment relationship prematurely under German law. This document is essential in situations where a mutual separation is preferred over unilateral termination, typically arising from restructuring, career changes, or other business or personal circumstances. It must comply with strict German employment law requirements, including proper notice periods, severance calculations, and works council consultation where applicable. The contract provides comprehensive coverage of financial settlements, continued obligations, and protection measures for both parties, while ensuring all mandatory requirements under German employment law are met, including the provision of a reference letter (Arbeitszeugnis) and proper handling of outstanding benefits and company property.
