Termination of Employment by Termination Agreement Against Payment of Severance Pay

Regardless of whether for employers, managers or employees – severance pay is a core issue in employment law advice. However, the employee only receives a severance payment if he or she reaches an agreement with the employer on the termination of his or her employment relationship. There is no legal entitlement to a specific severance payment.

This can be done through a settlement before the labour court or out of court through a termination agreement or settlement agreement. In addition to the calculation of the severance pay and its assessment under tax law and social security law, the blocking period or suspension of unemployment benefits, a leave of absence, the so-called turbo bonus, the compensation for holiday and overtime, bonuses and the employer’s reference are relevant.

The scope for these agreements is enormous. Solutions for the employer or the employee can be optimised at a wide variety of adjusting screws without this leading to additional burdens for the other side. Our advice protects you from making mistakes here.