Voluntary Severance Agreement Template for Germany

The Voluntary Severance Agreement (Aufhebungsvertrag) is a crucial document in German employment law used when an employer and employee mutually agree to terminate their employment relationship outside of the standard notice period framework. This agreement is particularly relevant in scenarios of corporate restructuring, leadership changes, or when both parties wish to avoid potential litigation related to termination. The document must carefully balance the interests of both parties while ensuring compliance with German labor law, tax regulations, and social security requirements. It typically includes detailed provisions on severance payments, treatment of outstanding benefits, confidentiality obligations, and mutual releases. The agreement must be carefully drafted to avoid scrutiny from labor courts and ensure it meets all formal requirements under German law, including clear language and comprehensive coverage of all material terms.

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration details

2. Background: Brief context of the employment relationship, including start date, current position, and mutual decision to terminate

3. Definitions: Key terms used throughout the agreement, including calculation periods, relevant dates, and specific German legal terms

4. Termination of Employment: Clear statement of the termination date and mutual agreement to end the employment relationship

5. Severance Payment: Amount of severance payment, calculation method, payment date, and tax treatment under German law

6. Outstanding Remuneration: Treatment of salary, bonuses, commissions, and vacation days up to the termination date

7. Company Property: Requirements and timeline for returning company property, documents, and data

8. Confidentiality Obligations: Ongoing confidentiality obligations post-termination

9. Mutual Release: Waiver of claims by both parties, subject to German law restrictions on waivable rights

10. Social Security and Benefits: Impact on social security benefits and unemployment insurance

11. Reference Letter: Commitment to provide a qualified reference letter (qualifiziertes Arbeitszeugnis)

12. Final Provisions: Governing law, severability clause, and form requirements under German law