Document background
An Employer Separation Agreement (Aufhebungsvertrag) is a crucial document in German employment law used when both employer and employee agree to terminate their employment relationship by mutual consent. It serves as an alternative to unilateral termination and is particularly useful in situations where parties wish to avoid potential litigation or agree on terms that differ from statutory minimums. The agreement must comply with strict German labor law requirements, including the Civil Code (BGB), Protection Against Dismissal Act (KSchG), and various social security regulations. Typically used during restructuring, voluntary departures, or dispute resolutions, it covers essential elements such as termination date, severance payments, benefit arrangements, and mutual releases. The document requires careful drafting to ensure enforceability and protect both parties' interests while addressing specific requirements of German employment law.
