Termination agreement: don’t sign without legal review.
A termination agreement bypasses the German dismissal-protection rules. That is convenient for your employer — and risky for you. Before you sign, we tell you the severance you can realistically demand and whether a 12-week unemployment-benefit blocking period is on the table.
A termination agreement (Aufhebungsvertrag) ends the employment by mutual contract, usually faster than the statutory notice period and almost always with severance. The catch: it is treated by the unemployment office as a voluntary termination, which typically triggers a 12-week blocking period for unemployment benefit under § 159 SGB III. The Federal Labour Court ruling BAG 6 AZR 333/21 (“faires Verhandeln”) additionally requires fair negotiation conditions — pressure tactics by the employer can invalidate the agreement.
Written and reviewed by Fatih Bektas, German employment-law specialist (APOS Legal Heidelberg).
When to consider signing — and when not
Reasonable to consider
- You have a new job lined up and the start date is close
- The agreement contains a severance and a clean reference
- The employer would have had a strong operational dismissal anyway (avoids Sperrzeit)
- You want to leave the role for personal reasons
Refuse or renegotiate
- No severance offered, or a token figure
- You are under pressure (“sign within an hour”) — BAG 6 AZR 333/21 issue
- You hold strong dismissal protection (pregnancy, severe disability, works council)
- The reference clause is missing or weak
- No express clause protecting your unemployment benefit
The clauses every termination agreement should contain
- Severance: specific amount in € gross, due-date, payment to a named bank account, plus an explicit tax-allocation clause (Fünftelregelung).
- End-date and freistellung: last day of employment, full pay until that date, you released from work duties (Freistellung) with holiday set off.
- Reference: qualified, “very good” (sehr gut) overall grade, agreed text annexed to the agreement.
- Holiday and overtime: remaining holiday paid out in cash, overtime balance compensated.
- Company car / equipment: dates for return, condition expectations, no offset against severance.
- Confidentiality and non-compete: ensure any post-contractual non-compete is properly compensated under § 74 HGB — or waive it.
- “No Sperrzeit” framing: a recital that the employer would have dismissed otherwise on operational grounds, observing the notice period.
- General release (Erledigungsklausel): understand its scope before signing — it bars further claims.
Termination agreement — most common questions
What is a termination agreement (Aufhebungsvertrag)?
A termination agreement is a mutual contract between employer and employee that ends the employment relationship by agreement, usually with a specific end-date and a severance payment. It bypasses the regular notice period and dismissal-protection rules, which is exactly why it is risky to sign without prior review.
Does signing trigger a Sperrzeit (unemployment-benefit blocking period)?
Often yes. Signing a termination agreement is treated as voluntarily ending the employment, which usually leads to a 12-week blocking period of unemployment benefit (§ 159 SGB III) unless you can show an important cause — for instance, an imminent operational dismissal that would have ended the employment anyway. The exact wording of the agreement is decisive.
Should I always demand severance?
Yes. If the employer wants you to sign, the leverage is on your side — they are avoiding an unfair-dismissal claim. Realistic ranges are 0.5–1.5 gross monthly salaries per year of service, sometimes more. Without severance, the agreement almost never makes sense.
Can I withdraw a signed termination agreement?
In principle no. There is no general right to withdraw a termination agreement. Only narrow exceptions exist: rescission for fraud or threat (§ 123 BGB), gross breach of the “fair negotiation” doctrine (BAG 6 AZR 333/21), or a Widerruf clause expressly written into the agreement.
What about my reference letter and remaining holiday?
Both should be settled in the agreement. Demand a “very good” qualified reference (§ 109 GewO), pay-out of remaining holiday in cash (§ 7 IV BUrlG), continued use of the company car until the end-date, plus a release from further work duties with continued pay (Freistellung).
Tell us about your case
Fill in the form — we will review your situation. Free of charge, typically within 48 hours. We handle German labour-law matters in English.
What happens next?
After your enquiry we review the details and reply with an initial assessment — whether the dismissal can be challenged, how high a likely severance could be and which next steps make sense.
bektas@apos.legal
+49 6222 9599 2400
Response time: we reply within 48 hours on working days. If you have already received a dismissal, please mention it — deadline-sensitive cases are prioritised.
Dismissed? The clock is ticking.
Tell us about your case — we check for free whether your dismissal can be challenged and how high your severance can be. Usually within 48 hours.
Get my free review →Received a dismissal? You have just 3 weeks to file (§ 4 KSchG). Contact us immediately — we can protect your deadline while reviewing the case.