LAWYER SPECIALISING IN TERMINATION AGREEMENTS IN MUNICH

No. There is no obligation to sign. A termination agreement only becomes valid if both parties agree to it. By signing, you are actively deciding to terminate the employment relationship. You should therefore always check what the consequences are before signing.

The biggest drawback usually concerns unemployment benefit. A mutual termination agreement can result in a waiting period because you have actively contributed to the termination of the employment relationship. In addition, the start of your unemployment benefit may be delayed if the employment relationship ends earlier under the termination agreement than it would have under a standard dismissal. Furthermore, you lose the opportunity to have a dismissal reviewed by a court, as no formal notice of dismissal is given.

Often, yes, but not automatically. Many termination agreements include a severance payment because the employer wants to avoid a risk or reach a quick resolution. However, there is no legal entitlement to one. Whether a severance payment is made and how much it amounts to depends primarily on the strength of your negotiating position.

There is no set amount. A figure of half a month’s salary per year of service is often cited as a guide, but this is only a rough estimate. Depending on the circumstances, the risk to the employer and the outcome of negotiations, the severance payment may be significantly higher or lower.

Generally speaking, no. Once a termination agreement has been signed, it is generally binding. It can only be revoked in rare exceptional cases, such as where the agreement was entered into under duress, through deception, or in a situation where the party was taken by surprise.

A mutual termination agreement may result in a waiting period. The Federal Employment Agency will assess whether you played a part in bringing about the termination of your employment. If this is the case, a waiting period of up to 12 weeks may apply. In addition, your entitlement to unemployment benefit may be temporarily suspended if notice periods have not been observed.

That depends on the individual case. A termination agreement can offer advantages, such as a quicker separation, a severance payment or a better reference. At the same time, protective measures such as notice periods and protection against unfair dismissal no longer apply. Whether a termination agreement is advisable depends on how strong your position is and what alternatives you have.

The most important points to consider are the termination date, any severance pay, leave of absence, remaining holiday entitlement, bonus payments, a detailed reference, and any outstanding claims. You should also have it checked whether any specific provisions in the termination agreement could affect your unemployment benefits.

Signing too hastily. Many termination agreements are presented under time pressure. If you sign immediately, you often miss out on better terms or overlook risks relating to unemployment benefits. The first few hours after the agreement is presented often determine how favourable the final outcome will be.