The difference between termination and termination agreement simply explained

Different possibilities of termination and their advantages and disadvantages

• There are two ways of doing this termination - Both those by the employee and those by the employer, which show considerable differences and sometimes have serious disadvantages.

• Employees should only quit if they can present a new job or if there are other valid reasons. Otherwise, they usually have to expect a twelve-week ban on unemployment benefits.

• The difference to the termination by the employer is due to the fact that terminated persons immediately benefit from unemployment benefits. In addition, the employer must also make a social selection. In contrast to the termination agreement, the works council - if available - must also be informed beforehand by the employer and agree to the termination. Incidentally, works council members cannot be terminated.
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• In any case, the dismissed employee should immediately report to the employment agency as a job seeker and also apply for unemployment benefit. This ensures that the person concerned has financial means available even at the beginning of his unemployment period.

The termination agreement - advantages and disadvantages

• Who another Workplace has found, can achieve by means of a termination agreement that he does not have to comply with any notice periods. A difference to termination is also due to the fact that severance payments are usually paid when a termination agreement is concluded.


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• In contrast to dismissal, the employer does not have to adhere to any social selection or notice periods. He doesn't have to involve the works council either.

• The termination agreement - just like the termination - must generally be set out in writing. If it is only agreed orally, it is invalid. The employment relationship then continues.

• Anyone who signs a termination agreement and cannot show a new job will only receive unemployment benefits after a period of twelve weeks. In addition, the duration of unemployment benefits will be reduced by the number of days of the blocking period, or at least by a quarter. This makes a big difference to quitting.

• If the employer threatens to terminate the employment contract if you do not sign the termination agreement, you should at least work towards ensuring that the severance payment is at least as high as the unemployment benefit, which is paid for a twelve-week period would. So the person concerned does not suffer any financial disadvantages.

• There is no general rule for the amount of the severance payment. In many cases, however, half a month's salary is set as the severance payment amount per year of work.

• Another difference between a termination and a termination agreement is that the severance pay is im In the event of a termination, it must first be used up before benefits are paid by the employment agency will. If the employment relationship is terminated by means of a termination agreement, the severance payment will not be taken into account.