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What does a termination agreement mean for employees?

2023-12-05T14:26:01.322Z

Highlights: What does a termination agreement mean for employees?. As an employee, you should not sign it lightly. Social criteria that would prevent dismissal no longer play a role. Severance pay allows you to slide into a higher tax rate. Once the contract has been signed, it is difficult to contest it. It is possible, among other things, if there are errors about the content, because of "unlawful threat or fraudulent deception," informs the Verdi trade union. You can get out of employment more quickly. You will usually not receive unemployment benefits for 12 weeks.



Status: 05.12.2023, 15:15 PM

By: Carina Blumenroth

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If an employer wants to part ways with an employee, it does not always come to dismissal. A termination agreement is often offered. Here's what you need to know.

It is a voluntary agreement between employer and employee that should be well thought out. We are talking about a termination agreement as a way to terminate an employment relationship. As an employee, you should not sign it lightly. Here's what you should definitely keep in mind.

What is the difference between a termination agreement and a termination agreement?

Read your termination agreement carefully. © Zoonar.com/stockfotos-mg/Imago

Anyone who signs a termination agreement waives essential rights as an employee. For example, there is no notice period. This means that you can be left without your job from one day to the next. What is more important, however, is that you do not enjoy protection against dismissal, informs the portal Finanztip. Social criteria that would prevent dismissal no longer play a role. Pregnant women, severely disabled people and people on parental leave are also no longer particularly protected. Furthermore, the works council is not involved, so it cannot check whether all criteria have been taken into account or whether continued employment in the company would actually be possible. The law firm Hensche informs that a termination agreement is only valid if both sides agree. However, before you as an employee agree to such a termination agreement, you should know the implications.

Don't miss out: You can find everything you need to know about jobs and careers in the career newsletter of our partner Merkur.de.

Termination agreement signed: What are the advantages and disadvantages?

AdvantagesDisadvantages
You can get out of employment more quickly.You will be blocked by the Employment Agency, which means that you will usually not receive unemployment benefits for 12 weeks.
As a rule, employees receive a good reference.Severance pay allows you to slide into a higher tax rate.
You can knock out a severance payment even though you are not actually entitled to one. However, you are not entitled to this.You waive your protection against dismissal.

For employers, it may be more advisable to agree on a termination agreement. Employees should think carefully about the situation at hand. If you don't have a new job in prospect or don't want to stay with the company for other important reasons, it may be a good idea to have a legal check carried out to see whether a dismissal would go through at all.

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Avoid blocking time, despite termination agreement?

The law firm Hensche informs that even with a termination agreement, you can get around a blocking period of unemployment benefits. However, various conditions must be met for this to happen:

  • Initially, a dismissal for operational or personal reasons was "firmly envisaged". But then a termination agreement was agreed.
  • In the termination agreement, however, the notice periods are complied with by the employer.
  • The severance payment amounts to a maximum of half a month's salary per year of employment.

The termination agreement is only effective if both parties have signed. Once the contract has been signed, it is difficult to contest it. This is possible, among other things, if there are errors about the content, because of "unlawful threat or fraudulent deception," informs the Verdi trade union. It is often difficult to prove this.

Source: merkur

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