A termination agreement is used to terminate an existing contract between two or more parties by mutual consent with immediate effect or at a specific date in the future. The conclusion of a termination agreement is particularly common in the case of the amicable termination of employment relationships, e.g. if the employer and employee do not wish to wait for the expiry of the regular period of notice.
Unless otherwise agreed, the termination agreement is not bound by any particular formal requirements. For reasons of evidence, however, it is advisable to draw up the agreement in writing.