A termination agreement (Aufhebungsvertrag) ends the employment relationship by mutual consent, without a notice period, without protection against dismissal and without a deadline for legal action. What sounds convenient has consequences that should be considered before signing.
Written form
A termination agreement must be concluded in writing and signed by hand by both parties (section 623 German Civil Code, BGB). An agreement by email or messenger is invalid.
No right of withdrawal
Once signed, a termination agreement cannot simply be revoked, even if it was concluded at the workplace. The Federal Labour Court does, however, require fair negotiation: if the employer deliberately exploits a situation of psychological pressure, the agreement may be invalid. Rescission, for example on grounds of unlawful threat, is only possible within narrow limits. If in doubt, ask for time to consider and do not sign immediately.
Consequences for unemployment benefit
Anyone who contributes to ending their employment generally risks a twelve-week suspension of unemployment benefit (section 159 Social Code Book III, SGB III), and the benefit period is shortened. No suspension applies if there is good cause, for example if a lawful dismissal for operational reasons would otherwise have taken effect at the same time. If the ordinary notice period is not observed, the entitlement may additionally be suspended and part of a severance payment taken into account (section 158 SGB III).
Regardless of this, you must register as a jobseeker with the employment agency no later than three months before the employment ends, or within three days if the period is shorter (section 38(1) SGB III).
What should be settled
End date and garden leave: From when are you released from work, and is salary paid until the end?
Severance payment: There is no statutory entitlement; the amount is negotiable. Severance is taxable; since 2025, reduced taxation is only applied in the income tax return.
Holiday, overtime, variable pay: Outstanding entitlements should be settled expressly.
Reference: Agreeing the grade and, where appropriate, a draft reference avoids later disputes.
Settlement clause: Such clauses often extinguish all mutual claims. Check beforehand what would be lost, for example in relation to occupational pensions or non-compete clauses.
For employers
A carefully prepared termination agreement quickly creates legal certainty. Sufficient time to consider, objective discussions and a complete settlement of all open points reduce the risk of the agreement being challenged later.
Employment disputes arising in the district of Böblingen are heard by the Stuttgart Labour Court.