Another option for terminating the employment relationship is the termination agreement. In this case, an amicable termination agreement is reached between the employer and the employee. Unlike in the case of termination, a unilateral declaration is not possible in the case of a termination agreement.
As a rule, a termination agreement is concluded if the employer wishes to dismiss one or more employees and the legal validity of these dismissals is not clear. A termination agreement is often also used if the employee wishes to take up another position.
A major advantage of the termination agreement is the option to set the termination date individually. It is often agreed that a settlement will be paid. Furthermore, the employer is usually also prepared to issue a favorable reference.
However, as an employee, you should not agree to a termination agreement prematurely, because on the one hand the provisions of the KSchG do not apply due to the voluntary nature of the agreement and on the other hand you can only terminate a termination agreement once it has been concluded under very difficult conditions. You should also not be misled by the payment of a severance payment, because under certain circumstances you are also entitled to this in the event of termination.
It should also be noted that you as an employee terminate your employment relationship yourself as part of a termination agreement. This can trigger a blocking period in the event of unemployment. You will then not receive unemployment benefit for a period of at least 12 weeks. There are ways to avoid such a blocking period despite a termination agreement. For more information, get in touch with us As lawyers for employment law, we are your point of contact.