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Termination agreement: What employees should know about a termination agreement

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Labor law attorney assists: What you should know before signing a termination agreement.

The hidden risks of a termination agreement. Employees should always inform themselves before signing:

What you will learn in this article:

  1. What is a termination agreement?
  2. Reasons for a termination agreement
  3. Risks for employees
  4. Employee rights
  5. Conclusion from the lawyer: What you should consider before signing a termination agreement!

What is a termination agreement?

A termination agreement is an agreement between an employer and an employee that ends the employment relationship. Unlike dismissal, the initiative to terminate the contract does not come from the employer alone, but requires the consent of both parties.

Reasons for a termination agreement

Termination agreements can be concluded for various reasons. This is often done to enable a quick and amicable termination of the employment relationship. This can be in the interests of both the employer and the employee.

Risks for employees

Although a termination agreement can offer advantages for both parties, it also carries risks for the employee. Possible risks include, for example:

  • Loss of entitlements: Employees may lose entitlements arising from their employment relationship as a result of the termination agreement. These include, for example, vacation pay, overtime pay, or pro-rata bonus payments.
  • Waiting periods: When concluding a termination agreement, there may be waiting periods for receiving unemployment benefits. This means that the employee cannot receive unemployment benefits for a certain period of time after the end of the employment relationship.
  • Unclear wording: Some termination agreements contain unclear wording or clauses that may be disadvantageous to the employee. It is important to review these carefully or seek legal advice.

Employee rights

Employees have the primary right to reject a termination agreement. There are often situations in which employers give their employees the impression that they have no choice. The aim of this is to circumvent the high level of protection against dismissal enjoyed by employees by means of the termination agreement. It is therefore important not to be rushed into signing and to insist on your rights.

Conclusion from a specialist lawyer for labor law: What you should know before signing a termination agreement!

A termination agreement can be a way to end the employment relationship by mutual consent. However, employees should carefully weigh the risks and seek legal advice if necessary before signing a termination agreement. It is important to know and protect your rights so that you do not suffer any disadvantages.

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At a glance
What is a termination agreement? An agreement between an employer and an employee that terminates the employment relationship.
Objectives of the termination agreement? The goal is to terminate the employment relationship quickly and amicably.
Before signing a termination agreement, you should weigh up the risks and, if necessary, seek legal advice to protect your rights and avoid disadvantages.
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Legal advice for employees warning letter severance payment termination agreement MANAGING DIRECTOR AS EMPLOYEE TERMINATION