- You can initiate a termination agreement yourself, but you cannot enforce it unilaterally
- Anyone who enters into discussions without first seeking legal advice often weakens their own negotiating position
- Errors in the termination agreement often affect severance pay, unemployment benefits and your reference
- Our employment lawyers will assess whether this step is appropriate in your situation
Specialist solicitor in employment law
Over 15 years’ experience in employment law
Can you draft a termination agreement yourself?
You can raise the possibility of a mutual termination agreement with your employer and suggest a mutually agreed termination of your employment. However, you are not entitled to expect your employer to agree to this. A mutual termination agreement can only be reached if both parties agree to it.
You initiate the discussion, but you do not decide alone. Anyone who goes into this meeting unprepared often weakens their own position right from the start.
When it makes sense to make your own suggestion
A termination agreement can be a good option if you wish to actively end your employment and have a say in the terms of the arrangement. Typical situations:
- You already have a new career opportunity
- You wish to leave the employment relationship sooner
- the relationship with your employer is strained
- You wish to avoid being dismissed
- You want to influence the severance pay and departure date
The starting point is always crucial. Our employment lawyers will assess whether making your own proposal makes sense in your situation or whether it would limit your room for negotiation.
Should you suggest a termination agreement yourself?
If you wish to propose a termination agreement yourself, it may be advisable to do so if:
- you have already secured a new job
- the employer is also keen on a swift separation
- you have clear ideas about the severance pay and terms
Making your own proposal is often risky if:
- you are dependent on unemployment benefit
- the situation is tense or unclear
- You are unable to assess your negotiating position
In these cases, making your own proposal often weakens your starting position.
"If you are the one to initiate the termination agreement, the Jobcentre will quickly assume that you have actively brought about your own unemployment – which carries the risk of a waiting period. On the other hand, a self-initiated arrangement (e.g. in the case of a planned change of job, retirement or relocation) can be a controlled, financially sound solution."
How to prepare for the interview properly
Before you bring up the subject, you should set out your objectives clearly. Key questions to consider are:
- When do you wish to leave the company?
- What severance pay is realistic?
- What arrangements would you like regarding leave of absence and your reference?
- What are the potential implications for your unemployment benefits?
- What alternatives do you have?
If you do not clarify these points, you leave it up to the employer to decide.
How to discuss the termination agreement
The meeting should be well-prepared and run in a controlled manner. You do not need to present a finalised contract. It is sufficient to address the issue in a structured way and set out the parameters. It is important that:
- no hasty commitments
- no verbal agreements without due diligence
- no statements that weaken your position
- no time pressure on your part
A termination agreement is not a favour from the employer. It is a negotiation.
You should avoid these mistakes
Common mistakes in practice:
- You bring up the subject spontaneously
- You give the impression that you want to leave quickly
- You give up on your demands too soon
- You ignore the implications for your unemployment benefit
- You sign the first draft without checking it
The first draft often reveals how the employer assesses the situation. If you are unsure, you should also examine the issues of severance pay and the waiting period for unemployment benefits more closely.
"An employee wanted to leave the company and raised the issue of a termination agreement himself. During the initial discussion, he indicated that he wanted to leave as soon as possible. The employer subsequently offered only a small severance payment and a short-notice departure date. Together with the client, we restarted the negotiations and clearly outlined the risks for the employer. The result: a significantly higher severance payment, a flexible departure date and paid leave. The difference was not made by the first step, but by the right negotiation strategy that followed."
When you should seek legal advice
You should seek assistance if:
- you wish to initiate a termination agreement yourself
- You don’t know how to broach the subject
- you wish to negotiate a severance payment
- you want to avoid any disadvantages regarding your unemployment benefits
- a draft agreement is already available
Our lawyers, who specialise in termination agreements, will assess your situation and advise you on the best way to proceed.
"Only suggest a termination agreement yourself if
- you are certain about your next step (new job, self-employment, retirement) or
- you have clarified in advance how this will affect your unemployment benefits and the waiting period.
And: Never bring it up off the cuff during a break – instead, go in with a prepared plan (end date, severance pay, reference, leave of absence) and a clear negotiation strategy."
Do you have any questions about your situation?
A mutual termination agreement initiated by you may be a sensible option or could result in significant disadvantages. The key factors are how you approach the situation and what terms you are able to secure. Our employment law solicitors will review your case and advise you on how best to position yourself.
