The Termination Of Employment Contract is a crucial document used in German employment relationships when either the employer or employee wishes to end the employment relationship. It must strictly adhere to German employment law requirements, including the German Civil Code (BGB) and Protection Against Dismissal Act (KSchG). This document is necessary for companies with operations in Germany and must include specific elements such as clear termination statements, notice periods, and final settlement terms. It requires careful consideration of various factors including employee protection rights, works council involvement (if applicable), and special protections for certain employee groups. The document should be prepared in writing and must comply with formal requirements under German law to be legally effective.
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1. Header Information: Company letterhead, date, and reference number
2. Recipient Details: Employee's full name and address
3. Subject Line: Clear indication that this is a termination notice (K眉ndigung des Arbeitsvertrages)
4. Termination Statement: Clear and unambiguous statement of termination including the specific type (ordinary or extraordinary termination)
5. Last Working Day: Explicit mention of the last day of employment, considering notice periods
6. Notice Period Reference: Reference to the applicable notice period and its calculation
7. Return of Company Property: List of company property to be returned
8. Final Payment Information: Information about final salary, outstanding vacation days, and other payments
9. Reference Letter: Confirmation that a reference letter will be provided
10. Signature Block: Space for authorized signatory and company stamp
1. Garden Leave: Used when employee is to be released from work duties during notice period
2. Severance Payment: Include when a severance package is being offered
3. Confidentiality Reminder: Reminder of ongoing confidentiality obligations post-employment
4. Non-Compete Provisions: Reference to existing non-compete clauses if applicable
5. Works Council Reference: Required if works council was consulted in termination process
6. Handover Instructions: Specific instructions for knowledge transfer and work handover
7. Outstanding Benefits: Details of any pro-rated bonuses or other benefits
8. Legal Rights Notice: Information about employee's right to challenge the termination
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, vacation days, and other entitlements
2. Company Property Checklist: Itemized list of company property to be returned
3. Handover Plan: Detailed plan for transitioning work responsibilities
4. Benefits Summary: Summary of treatment of various benefits post-termination
5. Reference Letter Draft: Draft of the employee reference letter (Arbeitszeugnis)
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