Termination Agreement

What is a termination agreement (Aufhebungsvertrag)? A termination agreement is a contract between employer and employee that ends the employment relationship by mutual agreement at a specific date. It is often also called a dissolution agreement. Whether the contract is to the advantage or disadvantage of the employee depends on its concrete drafting.

Severance in the termination agreement

Termination agreements often include severance arrangements. You should be very cautious and have the contract checked by a specialist attorney for employment law before signing. Under certain circumstances, the unemployment office (Bundesagentur für Arbeit) may impose a blocking period (Sperrzeit) of up to twelve weeks for the unemployment benefit, since by signing you have actively contributed to the end of your employment.

Employment Law

Negotiate dissolution

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