(openPR) Employers and employees can terminate their employment relationship not only unilaterally, for example by termination, but also by mutual agreement, namely by means of a termination agreement.
A termination agreement has advantages for both parties; the employee leaves the job without having been terminated and can negotiate a severance payment if he is in a good negotiating position; the employer does not need to observe the employee’s general or special protection against dismissal or the works council’s right to participate. However, the following must be observed when concluding a termination agreement:
- The termination agreement must be concluded in writing. If it is not in writing, the termination agreement is void.
- Both parties must negotiate fairly when concluding a termination agreement; failure to do so may result in the termination agreement being invalid.
- Be careful when agreeing on compensation clauses (“mutual waiver”) – It is best to have the termination agreement drawn up by a specialist, for example a specialist employment law attorney.
- Employer’s duty to provide information – The employer should provide information, particularly with regard to company pension schemes or social security implications, otherwise the employee may be liable for damages.
This article was written by Mr. Attorney Thomas van Eimern from the law firm Prof. Dr. Thieler – Prof. Dr. Böh – Thieler Law Firm mbH. Attorney Thomas van Eimern has been a specialist in employment law for years and also a specialist in inheritance law. In his field of work as a specialist in employment law at the nationwide law firm Prof. Dr. Thieler – Prof. Dr. Böh – Thieler Rechtsanwaltsgesellschaft mbH, Attorney van Eimern advises and represents both employers and employees in all classic employment law matters, such as dismissals, termination agreements, working time and remuneration issues, the employer’s right to direct or give instructions, home office, special payments, part-time and fixed-term employment law, vacation entitlements/rights and employment contract drafting.
This article does not constitute legal advice and is provided for informational purposes only.
If you have any questions, please contact attorney Thomas van Eimern from the law firm Prof. Dr. Thieler – Prof. Dr. Böh – Thieler Rechtsanwaltsgesellschaft mbH.
The contact details are attached below.
