By means of a termination agreement, the employee and employer mutually agree to terminate the employment relationship at a certain point in time. In contrast to the termination agreement, the Settlement agreement the modalities of termination of the employment relationship after termination has already taken place.
Through skilful negotiations, the conclusion of a termination agreement can be beneficial for the employee, provided that certain special features are observed.
Advantages of a termination agreement for the employee
- the time of termination of the employment contract can in principle be freely chosen (however, if the statutory notice period is not met, there is a risk of a blocking period being imposed)
- Opportunity to participate (in the case of severance pay, vacation compensation, time off, etc.)
- Possibility of agreeing a so-called
Turbo clause
A turbo clause allows the employee to end the termination date specified in a termination agreement before this date (for example because the employee has already found a new job). The employee then receives the remuneration - as an additional severance payment - that the employer saved due to the early termination.
Cancellation agreement and embargo
The conclusion of a termination agreement leads generally to a blocking period in the case of unemployment benefits, as the employee contributes to the termination of the employment relationship by concluding the termination agreement.
As an exception, against the employee when concluding a termination agreement no blocking periodto be imposed when
- the employer has definitely promised an ordinary dismissal for operational reasons
- the termination agreement respects the notice periods, ie the termination agreement must not fall short of the statutory notice periods
- the employee receives a severance payment of a maximum of half a month's salary per year of employment