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A workable exit agreement settles the whole employment relationship, not just the severance figure. We advise on negotiation, drafting and the practical steps needed to close the matter.
What we help you decide
Negotiate an agreed exit. We assess the relevant documents, explain the available routes and agree the scope of advice before taking further steps.
Agree the commercial package
Set the end date, notice treatment, payment dates, variable remuneration, equity treatment and return of property. Clarify whether release from duties is revocable and how holiday and time credits are dealt with. References, internal communications and handover arrangements often matter as much as compensation.
Severance is not automatic
German law does not provide a universal severance entitlement whenever employment ends. Entitlements may arise from specific statutory routes, social plans, collective rules or agreement. Negotiated figures depend on litigation risk and the circumstances; a customary formula is not a guaranteed legal result.
Signing and consequences
Termination agreements require statutory written form. Assess unemployment-benefit consequences, tax treatment and pension implications with the appropriate advisers before signing. A deadline imposed by the other side does not make a poorly understood agreement safe. General consumer-style cancellation rights should not be assumed.
Practical example
An international manager is offered three months of paid release and a bonus waiver. We compare the proposal with notice rights and the bonus scheme, then negotiate a coherent end date, payment mechanism and reference rather than treating the headline sum as the entire deal.
Documents for an initial review
- Draft agreement and correspondence
- Contract, bonus and equity terms
- Proposed end date and release arrangements
- Holiday balance and pension information
Related advice
Dismissal and termination in Germany · Executive employment and directors’ service contracts · Garden leave and release from duties · Severance pay in Germany · German employment references and certificates · The form and content of a German employment reference · Understanding German employment reference wording · Inaccurate employment references: correction and liability · All employment law services · Discuss your matter
Legal sources
Reviewed: 8 November 2026. The application of these rules depends on the facts, the relevant documents and any applicable collective arrangements.