Before signing an employment settlement agreement
A clause-focused checklist for employees reviewing an Aufhebungsvertrag or Abwicklungsvertrag in Germany.
Begin with the legal route being changed
A termination agreement ends employment by consent. That is materially different from receiving a dismissal and deciding whether to challenge it. Identify whether a dismissal already exists, whether the agreement replaces it, and which claims the draft asks you to waive.
Read every financial line together
A severance amount cannot be assessed in isolation. Check salary through the end date, bonus treatment, commission, overtime, unused holiday, pension elements, expenses, shares, and the tax wording. A release from work may be revocable or irrevocable and may state whether leave is credited.
Do not leave the reference abstract
A promise of a “good” Arbeitszeugnis can still invite disagreement. Consider whether wording, rating, duties, reason for departure, and timing should be attached or defined.
Consider unemployment insurance
Voluntarily ending employment can contribute to a Sperrzeit, and an end date that shortens the applicable notice period may have further consequences. The exact assessment belongs with the Agentur für Arbeit or suitably qualified adviser; an employer’s reassurance is not a binding benefits decision.
Treat imposed urgency carefully
Ask why a deadline is short and request time to review the draft. Keep versions and do not rely solely on oral additions. A consultation can identify negotiating points, but complex tax, pension, executive, or cross-border provisions often need specialist advice.