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Termination Agreement (Aufhebungsvertrag)

An Aufhebungsvertrag (termination agreement) ends an employment relationship by mutual agreement between employer and employee. It strictly requires written form under § 623 BGB; electronic form is excluded. Because no dismissal is issued, dismissal protection, notice periods, and works council consultation fall away, but a Sperrzeit (blocking period) for unemployment benefits often threatens.

At a glance

  • Ending by mutual agreement, not a one-sided dismissal
  • Mandatory written form under § 623 BGB: handwritten signatures of both sides on the same document; electronic form is excluded
  • Bypasses dismissal protection (Kündigungsschutz), notice periods, and works council consultation
  • Risk of a Sperrzeit (blocking period) of up to twelve weeks for unemployment benefits (§ 159 SGB III) and possible suspension of the claim
  • The principle of fair negotiation (Gebot fairen Verhandelns) developed by the Federal Labour Court protects against unfair pressure at signing
  • Typical clauses: severance, release from work, remaining leave, reference letter (Zeugnis), and end date

Limits on how the agreement comes about

Freedom of contract ends where consent is no longer freely given. Three limits matter in practice.

Gebot fairen Verhandelns (duty of fair negotiation). The Federal Labour Court requires that the other side's freedom of decision is preserved. It is breached where someone is deliberately caught off guard, where an illness is exploited, or where an offer is valid now or never without an objective reason. The consequence is a damages claim that can be directed at undoing the agreement.

Unlawful threat (§ 123 BGB). Announcing a dismissal is permitted where a reasonable employer could seriously have considered it. Threatening a plainly baseless dismissal, or a criminal complaint without a solid basis, makes the agreement voidable.

Surprise situations. An Aufhebungsvertrag produced without warning in a meeting announced as routine, coupled with a demand to sign immediately, is open to challenge.

For employers this translates into simple practice: allow time to consider, document the reference to the option of taking legal advice, and do not manufacture time pressure.

How it differs from an Abwicklungsvereinbarung

An Aufhebungsvertrag ends the employment itself. An Abwicklungsvereinbarung presupposes a dismissal that has already been given and only settles its terms. Which route applies depends mainly on whether notice has already been served.

Opportunities and risks for employees

  • Upside: a predictable separation, often with a severance, without lengthy litigation
  • Upside: individually negotiable terms on reference, release from work, and end date
  • Downside: waiver of dismissal protection and of an unfair-dismissal claim
  • Downside: Sperrzeit and suspension risk for unemployment benefits where there is no good cause
  • No statutory right of withdrawal; rescission (Anfechtung) is possible only under narrow conditions

FAQ

Can I conclude an Aufhebungsvertrag by email or DocuSign?

No. § 623 BGB requires written form, meaning handwritten signatures of both parties on the same paper document. Electronic form is expressly excluded, so email, scan, fax, or a digital signature are not enough. A termination agreement concluded only electronically is invalid.

Does an Aufhebungsvertrag cause a Sperrzeit for unemployment benefits?

Often yes. Because the employee co-causes the unemployment, the employment agency regularly imposes a Sperrzeit of up to twelve weeks (§ 159 SGB III). A good cause, such as an otherwise imminent lawful redundancy dismissal observing the notice period, can avoid the Sperrzeit.

Can I undo a signed termination agreement?

Usually not. There is no statutory right of withdrawal as in consumer protection. A way out exists only through rescission (Anfechtung, for example on fraudulent misrepresentation or unlawful threat) or, exceptionally, via the Gebot fairen Verhandelns that the Federal Labour Court applies where a party was unfairly caught off guard.

What typically goes into an Aufhebungsvertrag?

Common terms cover the end date, a severance, a release from work, remaining leave, and the reference letter (Zeugnis). A general release clause (Ausgleichsklausel) is often added, by which both sides declare that they have no further claims.

Last updated: August 2026

This article provides general information and is not a substitute for legal advice in individual cases.