Document background
The End of Service Contract (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. This agreement is particularly valuable when parties wish to avoid the strict dismissal protection regulations in Germany or want to ensure a clean and amicable separation. The document must comply with German labor law requirements and typically includes detailed provisions about the termination date, final payments, benefits settlement, company property return, and post-employment obligations. It's commonly used during restructuring, voluntary departures, or when offering severance packages. The agreement provides legal certainty for both parties and helps prevent future employment disputes. Special attention must be paid to German-specific requirements such as the mandatory reference letter (Arbeitszeugnis) and works council involvement where applicable.
