Secure severance negotiations with a settlement agreement
With professional advice and representation by a lawyer
A settlement agreement offers employers and employees the opportunity to terminate an employment relationship by mutual consent
– without observing statutory notice periods and without filing an unfair dismissal claim. However, caution is advised:
a settlement agreement involves legal pitfalls. Anyone in Munich wishing to conclude a settlement agreement
should therefore consult an experienced employment lawyer.
As an employee, you should always exercise great caution when entering into a termination agreement or
settlement agreement. In general,
this should not be done without advice from an experienced lawyer, as there is a significant risk of legal pitfalls
leading to personal disadvantages or lower severance payments. This is partly because the employer is usually supported
by an experienced lawyer, and also because legal remedies against a settlement agreement are very limited.
It is important for employees to know that there is typically no statutory right of withdrawal or rescission.
How can I, as a lawyer, assist you in negotiating your settlement agreement?
As a lawyer specializing in employment law and settlement agreements in Munich, I can provide you with a comprehensive initial consultation, offering an initial assessment of the possibilities and prospects of a settlement agreement in your specific case. If a basic agreement with the employer has already been reached, I will help you formalize your claims in a legally secure written form. If you are still in negotiations with your employer, I can professionally support you in upcoming discussions to achieve the best possible severance package for you.
Of course, I also represent employers in drafting and formulating standardized settlement agreements and termination agreements.
You can trust us when it comes to settlement agreements
- Professional advice
- Short-notice appointments
- Always here for you
Contact us for an initial consultation – in person, by phone, or via video call.
What a settlement agreement includes
Unlike a standard termination, a settlement agreement gives employees better opportunities to formulate their own wishes and claims when leaving a company. These are also legally secured and fixed. It usually comes into play when the parties have already reached a basic agreement on severance payments or other compensation, making formal termination unnecessary. Negotiating the best possible severance and securing it effectively in a settlement agreement is the task of an experienced employment lawyer.
What should be included in a settlement agreement? – Checklist
A legally secure settlement agreement should include the following points:
✅ End date of the employment relationship
✅ Agreement on severance pay (optional)
✅ Wording for a qualified employment reference
✅ Release from work (with/without deduction of remaining vacation)
✅ Rules regarding company car, laptop, mobile phone
✅ Handling of outstanding claims and bonuses
✅ Notes on statutory reporting obligations (e.g., employment agency)
Advantages of a settlement agreement:
- Quick and flexible termination of the employment relationship
- Possibility of severance pay
- Avoidance of an unfair dismissal procedure
- Discreet separation without public termination
Possible disadvantages:
- Waiting period for unemployment benefits (ALG I)
- Loss of protection against unfair dismissal
- Unfair clauses (e.g., non-compete clauses, repayment of bonuses, etc.)
How a lawyer can specifically help with a settlement agreement
A specialized employment lawyer in Munich knows the regional labor courts, common industry standards, and can negotiate tailor-made solutions for you. They protect you from financial disadvantages and legal risks.
- Review of the settlement agreement for legal pitfalls
- Negotiation of higher severance pay
- Ensuring correct employment reference wording
- Advice on avoiding waiting periods for unemployment benefits
- Review of confidentiality, non-compete, and repayment clauses