{"id":9948,"date":"2024-11-13T09:52:28","date_gmt":"2024-11-13T08:52:28","guid":{"rendered":"https:\/\/allenstein.legal\/termination-agreement-and-severance-pay-what-you-need-to-know\/"},"modified":"2026-06-25T16:37:32","modified_gmt":"2026-06-25T14:37:32","slug":"termination-agreement-and-severance-pay-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/allenstein.legal\/en\/termination-agreement-and-severance-pay-what-you-need-to-know\/","title":{"rendered":"Termination Agreement and Severance Pay &#8211; What You Need to Know"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"9948\" class=\"elementor elementor-9948 elementor-8356\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7bb8a4dc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7bb8a4dc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1e44eb6\" data-id=\"1e44eb6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-72964c3e elementor-widget elementor-widget-text-editor\" data-id=\"72964c3e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In our daily employment law practice, we regularly encounter cases in which employees are confronted with a termination agreement. <b>We provide you with a comprehensive overview of the most important legal aspects and answer frequently asked questions relating to termination agreements and severance pay.<\/b><\/p><ol><li><a href=\"#aufhebungsvertrag\">What is a termination agreement and when is it used?<\/a><\/li><li><a href=\"#vorteile\">What are the advantages and disadvantages of a termination agreement for employees?<\/a><\/li><li><a href=\"#abfindung\">How much should a severance payment be?<\/a><\/li><li><a href=\"#klauseln\">Which clauses should definitely be reviewed in the termination agreement?<\/a><\/li><li><a href=\"#unterzeichnung\">What should be considered when signing a termination agreement?<\/a><\/li><li><a href=\"#auswirkungen\">What impact does a termination agreement have on unemployment benefits?<\/a><\/li><li><a href=\"#fazit\">Conclusion<\/a><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f06d3f3 elementor-widget elementor-widget-menu-anchor\" data-id=\"f06d3f3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"terminationagreement\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f4db2a2 elementor-widget elementor-widget-heading\" data-id=\"2f4db2a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">1. What is a termination agreement and when is it used?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6a0a67a8 elementor-widget elementor-widget-text-editor\" data-id=\"6a0a67a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A termination agreement is a mutual agreement between employer and employee to terminate the employment relationship. Unlike a dismissal, both parties voluntarily agree to end the employment relationship at a specific point in time. Such an agreement is often offered by the employer when operational restructuring is planned or conflicts have arisen in the workplace.  <\/p><p>Case example: The company Tech Solutions GmbH is planning to close its Berlin branch. Instead of issuing operational dismissals, it offers its employees termination agreements with severance payments. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40334739 elementor-widget elementor-widget-menu-anchor\" data-id=\"40334739\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"advantages\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9f089fc elementor-widget elementor-widget-heading\" data-id=\"9f089fc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">2. What are the advantages and disadvantages of a termination agreement for employees?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ba06ee0 elementor-widget elementor-widget-text-editor\" data-id=\"7ba06ee0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b>Advantages:<\/b><\/p><ul><li>Immediate clarity about the end of the employment relationship<\/li><li>Usually higher severance pay than in case of dismissal<\/li><li>Avoidance of a potentially lengthy legal dispute<\/li><li>Possibility to terminate the employment relationship promptly<br><br><\/li><\/ul><p><b>Disadvantages:<\/b><\/p><ul><li>Possible waiting period for unemployment benefits<\/li><li>Waiver of protection against dismissal<\/li><li>No possibility to challenge the termination later<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2217a602 elementor-widget elementor-widget-menu-anchor\" data-id=\"2217a602\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"severancepay\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73e71f7e elementor-widget elementor-widget-heading\" data-id=\"73e71f7e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">3. How much should a severance payment be<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-42b56476 elementor-widget elementor-widget-text-editor\" data-id=\"42b56476\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>There is no legal entitlement to severance pay. Severance payments are always a matter of negotiation. The amount of severance pay is not legally defined. As a rule of thumb, the following calculation has become established in practice: 0.5 to 1.5 gross monthly salaries per year of service. The specific amount depends on various factors:    <\/p><ul><li>Length of service<\/li><li>Age of the employee<\/li><li>Prospects on the job market<\/li><li>Economic situation of the company<br><br><\/li><\/ul><p>Case example: A 45-year-old employee with 12 years of service and a gross monthly salary of \u20ac4,000 could expect a severance payment between \u20ac24,000 (0.5 x 12 x \u20ac4,000) and \u20ac72,000 (1.5 x 12 x \u20ac4,000).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6ca4a1ae elementor-widget elementor-widget-menu-anchor\" data-id=\"6ca4a1ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"clauses\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33b168ad elementor-widget elementor-widget-heading\" data-id=\"33b168ad\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">4. Which clauses should definitely be reviewed in the termination agreement?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-51920261 elementor-widget elementor-widget-text-editor\" data-id=\"51920261\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>When reviewing a termination agreement, the following points are particularly important:<\/p><ul><li>Termination date of the employment relationship<\/li><li>Amount and due date of the severance payment<\/li><li>Provisions regarding remaining vacation<\/li><li>Release from work obligations<\/li><li>Reference and employment documents<\/li><li>Revocation options<\/li><li>Settlement of outstanding claims<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e23bd4d elementor-widget elementor-widget-menu-anchor\" data-id=\"5e23bd4d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"signing\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-17fbc9c1 elementor-widget elementor-widget-heading\" data-id=\"17fbc9c1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">5. What should be considered when signing a termination agreement?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d0e908a elementor-widget elementor-widget-text-editor\" data-id=\"6d0e908a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A termination agreement should never be signed under time pressure. The following steps are recommended: <\/p><ol><li>Read the contract carefully<\/li><li>Request time to consider (at least 7 days)<\/li><li><a href=\"https:\/\/app.jupus.de\/appointments\/new\/5f62a9b6-a85f-4dbb-9603-476c05fa8ef4\/s\/fbb90a1c-fb51-4471-9405-981e6eb17698\/\">Obtain legal advice<\/a><\/li><li>Review consequences for unemployment benefits<\/li><li>Observe written form requirement (Section 623 BGB)<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b64552e elementor-widget elementor-widget-menu-anchor\" data-id=\"b64552e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"impact\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-28799757 elementor-widget elementor-widget-heading\" data-id=\"28799757\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">6. What impact does a termination agreement have on unemployment benefits?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bcf47d3 elementor-widget elementor-widget-text-editor\" data-id=\"bcf47d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Signing a termination agreement can lead to a waiting period for unemployment benefits. This is usually up to 12 weeks. A waiting period can be avoided if:  <\/p><ul><li>The employer could issue a socially justified dismissal in any case<\/li><li>The severance payment amounts to at least 0.5 gross monthly salaries per year of employment<\/li><li>The termination date corresponds to the statutory notice period<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1107757d elementor-widget elementor-widget-menu-anchor\" data-id=\"1107757d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"conclusion\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e18c7e2 elementor-widget elementor-widget-heading\" data-id=\"6e18c7e2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">7. Conclusion<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4901a299 elementor-widget elementor-widget-text-editor\" data-id=\"4901a299\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A termination agreement can be a sensible solution for both parties to end an employment relationship by mutual consent. <b>However, employees should carefully review the conditions and seek legal advice before signing. The law firm Allenstein Legal in Berlin is available to assist you with all questions regarding termination agreements and severance pay.<\/b> It is particularly important to consider the long-term consequences for your own professional and financial situation and not to act hastily.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5c40d280 elementor-widget elementor-widget-menu-anchor\" data-id=\"5c40d280\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"conclusion\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In our daily employment law practice, we regularly encounter cases in which employees are confronted with a termination agreement. We provide you with a comprehensive overview of the most important legal aspects and answer frequently asked questions relating to termination agreements and severance pay. What is a termination agreement and when is it used? What [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9948","post","type-post","status-publish","format-standard","hentry","category-unkategorisiert"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Termination Agreement and Severance Pay<\/title>\n<meta name=\"description\" content=\"Have you received an offer for a termination agreement? 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