Leave of absence under German labour law

“Consider yourself on leave until further notice!” An exemption/leave of absence may be decided colloquially. This means that the employer releases the employee from labor conscriptions for an undetermined period of time. Consequences of an exemption from work: The employee can not comply with his work until a legal termination of the contract; The employee must stay away from the workplace; The employee may be entitled to compensation for damages. Please consider that your entitlement to holidays and the overtime payment do not forfeit with the exemption from work. The exemption may be the “elegant” substitute for an immediate termination. Read more…

Cancellation agreement

In the event of a contractual termination, employees and employers shall terminate the employment contract by mutual agreement. Advantage: The consequences of a termination procedure can be avoided. The annulment is sealed by a cancellation agreement (“Aufhebungsvertrag” in German). The employee should be informed of the consequences before the signing of the termination agreement. Make sure that you do not have any disadvantages by signing the termination contract! Preventive consultation with an attorney will save you from very unexpected and unwanted consequences. Consequences of a cancellation agreement Please consider: The statutory period of notice is no longer applicable. The employee Read more…

Gratuity under German labour law

When the employment contract is terminated, the employee can demand (under certain conditions) for a severance pay/ gratuity (Abfindung) from his employer. This should provide him with a financial compensation for the loss of the workplace. If an employer pronounces a lawful termination, he does not have to pay any compensation unless it was previously agreed in the employment contract that in case of a regular termination of the employment relationship a severance pay has to be provided. The amount of the compensation ultimately depends on the individual case. The rule settlement is half a month’s salary per year of Read more…

Termination of employment

Terminating an employment contract can be regulated by an ordinary or an extraordinary termination. If the employer or the employee wants to withdraw from the employment contract before the period of notice, the following possibilities have to be taken into consideration: Annulment Exemption from work Termination without notice Please make sure to contact a lawyer in order to be perfectly aware of your choices, to be prepared for the consequences and to know exactly the advantages and disadvantages of your decision.