Termination agreement in employment law

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You have received a termination agreement? What now?

Law firm for labor law in Kerpen, Cologne and Witten

Lawyer for - Labor Law | Criminal Law | IT Law | Data Protection

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In contrast to the Cancellation for many companies, the termination agreement is a common means of terminating an employment relationship. What is the right Processing The development of such a system requires a number of important points to be taken into account.

Many entrepreneurs make the mistake of disregarding the essential requirements for the validity of a termination agreement. For this must be in accordance with  §§ 623, 126 BGB there is an agreement in writing between the employee and the employer on the termination of the employment relationship. Only then is this valid. However, the requirement of written form is only met if both parties have also signed this agreement personally and by hand. In this case, electronic signatures are not a form of signature that can be used.
In such a case, the termination agreement would be considered invalid.

In such a case, you should contact an Lawyer for labor law and have them advised and represented. Since the subsequent steps of revoking the termination agreement, contesting it or withdrawing from it are characterized by many legal pitfalls. The general regulations on rescission apply to the termination agreement, § 123 BGB, and that to resign, § 323 BGB.

In such cases, particular attention must also be paid to the requirement of fair negotiation. Here, too, representation by a Lawyer for labor law advisable, since the Lawyer in the context of negotiations, can significantly increase the pressure of negotiations, and usually better final results in the form of higher Severance payments can be achieved.

Another issue concerning the termination of an employment relationship by means of a termination agreement is the AGB control, insofar as the content of the annulmentual contractges is not seriously up for negotiation. Is it an individual termination agreement or a standard termination agreement? This also makes a serious legal difference.

Do not be naive! Leave the review of your termination agreement and the conduct of negotiations on the contents thereof with the employer to a Lawyer for labor law. Because this significantly increases your chance of success in the event of a dispute and often leads to higher Severance payments and shorter associated non-competition clauses. Often, with the involvement of a Lawyer also significantly shortens the time it takes to reach an out-of-court settlement. 

However, we also do not shy away from the chamber hearing. If no agreement can be reached with the (former) employer at the conciliation hearing, we will fight for you until the labor court reaches a decision. 

Therefore, leave the contesting of a termination agreement to the Professionals. At best, you have legal protection insurance, if not, apply for we Legal aid for you or discuss with you the costs and benefits of any litigation to be conducted.

Take care of your professional future, we do the rest!

The specifics of the termination agreement

Special features of the termination agreement

Basically, it should be noted that termination agreements can be very extensive and complicated under certain circumstances. However, there are some points that employers and employees should pay attention to. First of all, the contract must be in writing; electronic form alone is not sufficient in this case.

Another detail that should not be underestimated is that the difference between a termination and a termination agreement is that a termination agreement does not require consultation with the works council and the rules of protection against dismissal do not apply. For this reason, it is possible to conclude such an agreement without having to observe any deadlines.

A termination agreement often includes severance pay, but this is not mandatory. An employee is entitled to receive a qualified reference even after concluding a termination agreement.

With regard to the social security consequences of terminating employment relationships, in this case by concluding a termination agreement, the employer is generally not affected by the duty to provide information.

However, with regard to the potential loss of the employee's claims by concluding such a contract, such as the company pension plan, the employee should seek comprehensive advice from an attorney for employment law and, if necessary, have appropriate clauses included in the contract. Any outstanding statutory minimum vacation of the employee must always be compensated in such a termination agreement. Forcing employees to waive this is ineffective.

Effects of a termination agreement

Possible effects of a termination agreement

The employment relationship ends on the date specified and provided for in the termination agreement. However, this passage may also entail disadvantages for the employee. Firstly, the employee is obliged to register as a jobseeker with the employment agency three months before the end of the employment relationship, at the latest within three days of becoming aware of the date. 

Under certain circumstances, the entitlement to unemployment benefits (ALGI) is suspended if the employment relationship is terminated earlier by a termination agreement than by a notice of termination. If the contract is concluded without good cause on the part of the employee, the entitlement to unemployment benefits is suspended by a blocking period of usually 3 months (12 weeks). 

An important reason is, for example, an otherwise threatened termination for operational reasons. Likewise, the loss of a job requirement/fitness indicated by a serious illness also constitutes good cause in such a scenario. However, an entitlement to maternity pay only exists in the event of termination, not in the event of the conclusion of a termination agreement.

Is it possible to withdraw from a termination agreement?

Withdrawal from a termination agreement

The employment relationship ends on the date specified and provided for in the termination agreement. However, this passage may also entail disadvantages for the employee. Firstly, the employee is obliged to register as a jobseeker with the employment agency three months before the end of the employment relationship, at the latest within three days of becoming aware of the date. 

Under certain circumstances, the entitlement to unemployment benefits (ALGI) is suspended if the employment relationship is terminated earlier by a termination agreement than by a notice of termination. If the contract is concluded without good cause on the part of the employee, the entitlement to unemployment benefits is suspended by a blocking period of usually 3 months (12 weeks). 

An important reason is, for example, an otherwise threatened termination for operational reasons. Likewise, the loss of a job requirement/fitness indicated by a serious illness also constitutes good cause in such a scenario. However, an entitlement to maternity pay only exists in the event of termination, not in the event of the conclusion of a termination agreement.

Post-contractual non-competition clause

Prohibitions on parental leave and compensation

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It is now common practice for most companies to grant employees above a certain hierarchical level a post-contractual non-competition clause, a waiting clause, in which Employment contract to be included. The purpose of this is to protect the company after the employee leaves from the employee becoming a Employment relationship starts at a competitor company and harms the former employer with his industry-specific knowledge.

However, the associated costs are not always commensurate with the benefits of this. This is because many companies often forget that a post-contractual non-compete agreement also has a price. According to Section 74 (2) of the German Commercial Code (HGB), a post-contractual non-compete agreement is only valid and binding if it provides for the payment of compensation, compensation for waiting.

This must correspond to at least half of the employee's last annual salary per year of the ban. Otherwise, this is to be considered ineffective!

In this particular case, too, the advice to contact an experienced attorney for employment law always applies. As part of the legal advice and the associated representation before the employer, this lawyer can ensure that, on the one hand, the non-competition compensation associated with the non-competition agreement can be adjusted and increased or that an early withdrawal from this can be effected in the interest of the employee.

So don't leave anything to chance! Contact us. Together with you, we will develop a strategy to enforce your claims. We are not uncritical, but know: Being right and getting right are two different things.

In most cases, even claims that were thought to be secure turn out to be difficult to enforce. For this reason, we discuss with you the chances of success of enforcing your rights in our Law office by.

Have you been terminated or received a severance agreement from your employer?

Then contact us

+49 (0) 2273 - 40 68 504

info@kanzlei-baumfalk.de

Law firm for labor law in Kerpen, Cologne and Witten

Lawyer for - Labor Law | Criminal Law | IT Law | Data Protection

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