Document background
The Separation Letter (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 approach often provides a more amicable and flexible alternative to unilateral termination, allowing parties to negotiate terms that benefit both sides. The document needs to comply with German labor law requirements, particularly the written form requirement under § 623 BGB. It typically includes essential elements such as termination date, severance payments, benefit treatments, and final settlements. The Separation Letter is particularly useful in situations where a standard termination might be legally challenging or when parties wish to avoid potential litigation. Special attention must be paid to social security implications and the mandatory cooling-off period for unemployment benefits under German law.
