In most cases, signing leads to a 12-week unemployment benefit block. If you've received a dismissal notice instead, consider filing an unfair dismissal claim within 3 weeks.
Always seek legal advice before signing!
Attorney Andreas MartinPlease note that I do not offer a free initial consultation. Any legal advice in connection with a termination agreement is charged. The first consultation is billed as a flat fee of 190 € plus VAT. This initial consultation typically includes a review of the draft agreement, an explanation of the main legal issues and risks, and a personal or video discussion of the most important consequences of signing. It is a verbal initial consultation only and does not include any written legal opinion or written drafting work.
Beyond this first consultation, you can instruct me with further work on your termination agreement. If you would like me to draft or revise clauses of the settlement agreement, prepare a new version, or support you in negotiations, this is a separate mandate and will be billed separately under the German Lawyers’ Fees Act (RVG) based on a higher value in dispute (Gegenstandswert). In such cases, the scope and likely costs will be discussed with you before any further work begins.
The following examples show why contractual drafting or negotiations can cost substantially more than an initial consultation. They are simplified model calculations for a consumer. The matter value is assumed to be three gross monthly salaries. The figures include the applicable business fee, a 20 € expenses allowance and 19% VAT. The settlement column additionally includes a 1.5 settlement fee.
| Gross monthly salary | Initial consultation | Drafting or representation | With an out-of-court settlement |
|---|---|---|---|
| 1,800 € | 226.10 € | approx. 664.26 € (1.3 fee) | approx. 1,403.25 € |
| 3,000 € | 226.10 € | approx. 940.40 € (1.3 fee) | approx. 1,998.01 € |
| 5,200 € | 226.10 € | approx. 1,202.61 € (1.3 fee) | approx. 2,562.78 € |
| 8,000 € | 226.10 € | approx. 1,678.49 € (1.5 fee) | approx. 3,333.19 € |
| 12,000 € | 226.10 € | approx. 2,139.03 € (1.5 fee) | approx. 4,254.25 € |
These columns show alternative stages of the same matter; they are not amounts that are automatically added together. If the initial consultation and the subsequent work concern the same matter, the consultation fee is generally credited in accordance with § 34(2) RVG. A fee above 1.3 requires the work to be extensive or difficult. The actual matter value may also be affected by independently valued issues such as bonus claims, outstanding remuneration, a company car or share options. These figures are therefore non-binding examples, not an individual fee quotation.
The decisive distinction is the scope of the instruction. Reviewing and explaining the agreement is legal advice. If I am instructed to formulate or revise provisions for the agreement itself, this will regularly constitute assistance with drafting a contract. Direct communication with the employer is not required for this distinction.
| Requested service | Fee category | Practical meaning |
|---|---|---|
| Read and legally review the employer's draft | Initial consultation under the agreed fee arrangement or § 34 RVG | Included within the agreed scope of the initial consultation |
| Explain individual clauses and the legal consequences of signing | Initial consultation under the agreed fee arrangement or § 34 RVG | Included |
| Assess the end date, severance payment, garden leave, holiday, overtime, reference and release clauses | Initial consultation under the agreed fee arrangement or § 34 RVG | Included as legal assessment, without drafting new wording |
| Explain risks involving unemployment benefits and discuss available options | Initial consultation under the agreed fee arrangement or § 34 RVG | Included |
| Recommend which provisions should not be accepted or should be renegotiated | Initial consultation under the agreed fee arrangement or § 34 RVG | Included as a general recommendation |
| Draft a concrete severance, garden-leave, reference or release clause for this agreement | Business fee under no. 2300 VV RVG | Separate mandate; the fee is calculated by reference to the matter value |
| Revise existing provisions or prepare a counter-draft | Business fee under no. 2300 VV RVG | Separate mandate and usually substantially more expensive than the initial consultation |
| Send proposed amendments to the employer or negotiate with the employer or its lawyer | Business fee under no. 2300 VV RVG | Separate out-of-court representation mandate |
| Assist in reaching an agreement that resolves a dispute or uncertainty | Business fee and, depending on the circumstances, an additional settlement fee | The applicable fees are discussed before the mandate is extended |
A general recommendation can still form part of the consultation. For example, I may explain that a release clause should exclude an outstanding bonus or that garden leave should be irrevocable and take remaining holiday into account.
The position changes if I am instructed to develop wording that is intended to become part of the agreement, revise the employer's wording or prepare a counter-draft. This is regularly contractual drafting under no. 2300 VV RVG, even if the client initially communicates the proposal to the employer personally.
Before I extend an initial consultation to contractual drafting or representation, I discuss the additional scope of the mandate and the likely costs with the client.
Plain-English summary of preliminary remark 2.3(3) VV RVG: A business fee arises for handling a matter, including obtaining the necessary information, and for assisting with the drafting of a contract.
Fee range under no. 2300 VV RVG: 0.5 to 2.5. A fee above 1.3 may only be charged if the work was extensive or difficult.
If your German legal expenses insurance (Rechtsschutzversicherung) includes employment law and confirms cover for the matter, it will generally pay the statutory lawyer's fees under the RVG. Once cover is confirmed, I normally handle the fee correspondence with the insurer. Apart from any agreed deductible or items excluded by the policy, you therefore usually do not need to deal with the RVG calculation yourself.
An hourly fee agreement is different. Legal expenses insurers normally reimburse no more than the statutory RVG fees unless they expressly agree to cover the additional amount. I generally bill insured employment-law matters under the RVG rather than on an hourly basis. Whether a particular termination agreement is covered depends on the policy and the insured event, so confirmation of cover remains necessary.
Legal advice from a lawyer specialized in employment law is generally recommended before signing a termination agreement. Attorney Andreas Martin offers consultation and representation on all matters regarding the termination of employment relationships to clients from Berlin and Brandenburg. Advice is provided at his employment law office (branch) in Berlin Prenzlauer Berg.
Advantages:
Disadvantages:
Termination of employment contracts by dismissal or termination agreement must be in writing to be valid; electronic form is excluded.
Tip: Use a sample termination agreement and adapt it to your case.
| Feature | Termination Agreement | Dismissal (Kündigung) |
|---|---|---|
| Initiation | By mutual consent | By employer or employee |
| Notice period | Not required (can be agreed freely) | Must follow statutory/contract |
| Severance pay | Negotiable, not guaranteed | Rare, only in special cases |
| Unemployment benefit (ALG I) | 12-week block likely | No block if justified |
| Legal protection | No dismissal protection | Dismissal protection applies |
| Challenge possible? | Difficult, only in rare cases | Possible via labor court |
| Written form required | Yes (§ 623 BGB) | Yes (§ 623 BGB) |
🎧 Listen on SpotifyWhat is a termination agreement (Aufhebungsvertrag) in Germany?
A termination agreement is a mutual contract between employer and employee to end the employment relationship. It is an alternative to dismissal and requires both parties' consent.
What are the risks of signing a termination agreement?
The main risk is a 12-week unemployment benefit block (Sperrzeit). Employees may also lose protection against dismissal and risk waiving further claims such as overtime or unused vacation.
Is severance pay guaranteed in a termination agreement?
No, severance pay is not mandatory. It must be negotiated individually and included in the agreement.
Does a termination agreement need to be in writing?
Yes, German law (§ 623 BGB) requires termination agreements to be in written form. Electronic or oral agreements are invalid.
Can I challenge a signed termination agreement?
Challenging a termination agreement is difficult. It is only possible in exceptional cases, such as fraud, threat, or lack of fair negotiation.
What should be included in a termination agreement?
Important points are: end date, severance pay (if any), release from work, settlement of vacation and overtime, return of company property, reference letter, and a final settlement clause.
Should I consult a lawyer before signing?
Yes, always seek legal advice before signing a termination agreement to avoid disadvantages and ensure your rights are protected.