Document background
The Mutual Termination Of Employment Letter is a crucial document used in German employment relationships when both the employer and employee agree to end the employment contract by mutual consent. This approach differs from unilateral termination and often provides more flexibility in terms of timing and conditions. The document must comply with German employment law, particularly the German Civil Code (BGB) and the Protection Against Dismissal Act (KSchG). It typically includes essential information such as the termination date, final payment details, treatment of remaining vacation days, and company property return requirements. Additional elements may include severance payments, post-employment obligations, and benefit arrangements. This type of termination agreement is commonly used during corporate restructuring, when alternative employment arrangements are desired, or when both parties wish to end the employment relationship amicably outside standard notice periods.
