This document template is specifically designed for Ending A Fixed Term Contract Early in Germany, providing a structured framework for mutual termination agreements. It is typically used when both employer and employee agree to end a fixed-term employment relationship before the originally scheduled end date. The document ensures compliance with German employment law, including the TzBfG, BGB, and KSchG, while addressing all necessary aspects of the termination process. It becomes relevant in situations such as employee career changes, business restructuring, or mutual agreement to end the employment relationship early. The template includes comprehensive provisions for final payments, benefit settlements, company property return, and mutual releases, while considering German-specific requirements such as works council involvement where applicable and mandatory reference letter provisions.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Details of the existing fixed-term employment contract including its original start and end dates, and reason for early termination
3. Definitions: Key terms used in the agreement
4. Mutual Agreement to Terminate: Clear statement of both parties' agreement to terminate the employment relationship early
5. Termination Date: Specific date when the employment relationship will end
6. Final Salary and Benefits: Details of final salary payment, including pro-rated bonuses, outstanding vacation days, and other benefits
7. Company Property: Requirements for returning company property and documents
8. Release of Claims: Mutual release of claims between parties
9. Final Settlement: Confirmation that all payments and benefits listed constitute full and final settlement
10. Governing Law: Confirmation that the agreement is governed by German law
11. Severability: Standard clause ensuring remaining provisions remain valid if any provision is found invalid
1. Garden Leave: Include when employee will be released from work duties but remain employed until termination date
2. Reference Letter: Include when agreeing on the content or timing of the employment reference letter (Arbeitszeugnis)
3. Confidentiality: Include when emphasizing ongoing confidentiality obligations
4. Non-Competition: Include when existing non-compete provisions need to be addressed
5. Pension Arrangements: Include when there are company pension schemes to be addressed
6. Outplacement Support: Include when employer is offering career transition services
7. Outstanding Stock Options: Include when employee has unvested or unexercised stock options
8. Social Media: Include when addressing professional social media accounts and contacts
1. Schedule 1 - Payment Calculation: Detailed calculation of final payment including salary, vacation pay, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of benefit entitlements and their treatment post-termination
4. Appendix A - Reference Letter Draft: Agreed form of employment reference letter if applicable
5. Appendix B - Handover Plan: Detailed plan for handover of responsibilities if applicable
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