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  • The statutory period of notice is no longer applicable.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 has to forego social security benefits. For instance, the unemployment office pays the unemployment benefit only after a period of three months, if the employee is still unemployed after the termination of the previous contract. It should therefore ensure that the lost social insurance benefits in the cancellation contract are balanced.
  • The employee can negotiate a severance pay.
  • In the case of older workers, the employer may have to reimburse the unemployment benefit to be paid by the employee. The employer can be exempted from this obligation by the termination agreement.

Let us advise you in how to win your contract partner with a fair offer for a cancellation contract.


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