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Employment Termination Policy

Employment Termination Policy Template for Germany

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Key Requirements PROMPT example:

Employment Termination Policy

"I need an Employment Termination Policy for our German technology startup with 50 employees, which should include specific provisions for remote workers and protecting our intellectual property during the termination process."

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Document background
The Employment Termination Policy serves as a crucial document for organizations operating in Germany, where employment termination is strictly regulated by various laws and requires careful procedural compliance. This policy document is essential for organizations to navigate the complex requirements of German labor law, including mandatory notice periods, works council consultation, and special protections for certain employee categories. It provides structured guidance for handling both routine and complex termination cases, ensuring consistency in approach while minimizing legal risks. The policy is particularly important given Germany's employee-protective legal framework and the significant consequences of procedural errors in termination processes.
Suggested Sections

1. Purpose and Scope: Defines the objective of the policy and its application scope within the organization

2. Legal Framework: Overview of relevant German employment laws governing termination, including KSchG and BGB references

3. Types of Termination: Detailed explanation of different termination types (ordinary termination, extraordinary termination, mutual agreement)

4. Notice Periods: Statutory and contractual notice periods for different employee categories and lengths of service

5. General Termination Procedure: Step-by-step process for implementing terminations, including required approvals and documentation

6. Works Council Involvement: Procedures for consulting with works council as required by BetrVG

7. Protected Employee Categories: Special procedures for protected employees (pregnant women, disabled persons, works council members)

8. Documentation Requirements: Required documentation and record-keeping procedures for termination processes

9. Final Settlement Procedures: Process for managing final payments, outstanding leave, and return of company property

Optional Sections

1. Severance Pay Guidelines: Include when organization has specific severance pay policies or social plan agreements

2. Post-Employment Restrictions: Include when organization uses non-compete or confidentiality agreements post-termination

3. Redeployment Procedures: Include when organization has formal redeployment or internal transfer policies before termination

4. Mass Layoff Procedures: Include for larger organizations that may need to conduct mass redundancies

5. International Employment Considerations: Include for organizations with international operations or expatriate employees

Suggested Schedules

1. Termination Letter Templates: Standard templates for various types of termination notices compliant with German law

2. Termination Checklist: Procedural checklist for HR and managers to ensure compliance with all requirements

3. Works Council Consultation Form: Template for documenting works council consultations and responses

4. Final Settlement Calculation Sheet: Template for calculating final payments including salary, leave, and other entitlements

5. Exit Interview Form: Standard form for conducting and documenting exit interviews

6. Company Property Return Form: Checklist for tracking return of company property during termination process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Ordinary Termination (Ordentliche Kündigung)
Extraordinary Termination (Außerordentliche Kündigung)
Notice Period (Kündigungsfrist)
Works Council (Betriebsrat)
Social Justification (Soziale Rechtfertigung)
Termination Notice (Kündigungsschreiben)
Mutual Separation Agreement (Aufhebungsvertrag)
Protected Employees (Besonders geschützte Arbeitnehmer)
Severance Pay (Abfindung)
Final Settlement (Schlussabrechnung)
Garden Leave (Freistellung)
Company Property (Firmeneigentum)
Mass Redundancy (Massenentlassung)
Social Selection (Sozialauswahl)
Termination Date (Beendigungstermin)
Exit Interview (Austrittsgespräch)
Notice of Termination (Kündigung)
Employment Contract (Arbeitsvertrag)
Warning Letter (Abmahnung)
Statutory Notice Period (Gesetzliche Kündigungsfrist)
Employment Relationship (Arbeitsverhältnis)
Termination Reason (Kündigungsgrund)
Special Protection Period (Sonderkündigungsschutz)
Settlement Agreement (Vergleichsvereinbarung)
Reference Letter (Arbeitszeugnis)
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Professional Services

Construction

Education

Hospitality

Telecommunications

Energy

Transportation

Media and Entertainment

Real Estate

Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Senior Management

Operations

Administration

Employee Relations

Industrial Relations

Corporate Governance

Risk Management

Relevant Roles

Human Resources Manager

HR Director

Legal Counsel

Employment Lawyer

HR Business Partner

Department Manager

Line Manager

Managing Director

Chief Human Resources Officer

Compliance Officer

HR Administrator

Personnel Officer

Operations Manager

General Manager

Chief Executive Officer

Industries
Bürgerliches Gesetzbuch (BGB) §§ 620-630: German Civil Code sections on employment contract termination, including notice periods, form requirements, and general principles of contract termination
Kündigungsschutzgesetz (KSchG): Protection Against Dismissal Act - Provides primary framework for employment termination, requiring social justification for dismissals in companies with more than 10 employees
Betriebsverfassungsgesetz (BetrVG) §§ 102: Works Constitution Act - Requires consultation with works council before termination and defines their rights in the termination process
Mutterschutzgesetz (MuSchG): Maternity Protection Act - Special protection against dismissal for pregnant employees and recent mothers
Sozialgesetzbuch IX (SGB IX): Social Code Book IX - Special protection requirements for severely disabled employees
Bundesdatenschutzgesetz (BDSG): Federal Data Protection Act - Regulations on handling personal data during the termination process
Arbeitsgerichtsgesetz (ArbGG): Labor Court Act - Procedural rules for employment law disputes and timeframes for filing wrongful termination claims
Nachweisgesetz (NachwG): Written Form Requirements Act - Requirements for documenting terms of employment termination
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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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