Sprinter clause in the termination agreement - the 5 most important answers!
Termination agreements are a common way to end an employment relationship in 2021. Here, the employee and employer mutually agree on the respective terms of termination of the employment contract. This often avoids tiresome legal disputes or court proceedings regarding termination, notice periods or the severance pay to be paid. Both parties agree to the conditions that terminate the employment relationship.
A sprinter clause is increasingly being agreed as part of the termination agreement. The sprinter clause enables the employee to switch to a new employer more quickly and flexibly and can lead to an increased severance payment. In this article, we want to answer the five most important questions about the sprinter clause!
Table of contents:
- What is a turbo clause in termination agreements?
- What is the advantage of the sprinter clause?
- What are the disadvantages and risks of a turbo clause for employees?
- What is the amount of the severance payment with a sprinter clause?
- Does the sprinter clause affect my unemployment benefit?
- Our conclusion on the sprinter clause
Do you have individual questions about the sprinter clause?
As experienced lawyers in employment law, we are at your side. We look forward to hearing from you for comprehensive advice.
Rudolf-Diesel-Str. 5, 65760 Eschborn near Frankfurt
What is a turbo clause in termination agreements?
The termination agreement regulates when and under what conditions you as an employee should leave the company. It determines the termination of the employment contract and employment and ends the employment relationship. A turbo clause makes this point in time more flexible. The sprinter clause allows you to determine when you want to leave your company. This means that you can also leave the company before the agreed date.
What are the advantages of the sprinter clause?
For you as an employee, the conclusion of a sprinter clause in termination agreements has three main advantages:
- You can adjust the date for early departure from the company to your personal situation. There is no longer a statutory notice period. This also means that there is no blocking period for a new employment relationship. You can even start a new job straight away. This would not be possible in the event of premature termination without a turbo clause.
- The clause stipulates a so-called sprinter bonus. This gives you a higher severance payment if you leave the company before the date agreed in the termination agreement.
- The sprinter clause can be used to avert termination without notice by the employer. An amicable agreement saves both parties from potential legal disputes before the employment relationship is effectively terminated. Your employee can waive termination without notice and you can respond by filing an action for unfair dismissal.
Your employer has the advantage of saving the employer's social security contributions if you leave earlier.
What are the disadvantages and risks of a turbo clause for employees?
The sprinter clause is often an offer made by the employer. As an employee, you will always receive the originally intended severance payment, even if you do not find a new job initially and the sprinter clause does not apply. You can also expressly leave the company at the time specified in the termination agreement. Although you will then not receive the sprinter bonus, you will not be disadvantaged at first glance.
However, you should make sure that you only make use of the turbo clause if you can actually start your new job. If you are unable to take up the position after all, but have already received your sprinter bonus, there is no going back. Overall, this could also lead to financial disadvantages. For example, if you have received your bonus but have terminated your employment contract, which would have lasted for several months. In this case, you could miss out on several fully paid salaries. It is important to calculate possible outcomes in advance.
As an employee, you must also observe important formalities regarding the sprinter clause. If you fail to do so, you risk an ineffective termination of the employment relationship. In the worst-case scenario, your employer could then terminate your contract without notice, which would mean you would not receive any severance pay.
Pay attention to these two points when using the turbo clause:
- As a rule, a deadline is set for the use of the clause. As an employee, you usually have to inform your employer a few days before starting a new job.
- As an employee, you must send the employer a personally signed letter in which you inform them in writing of the use of the clause. A verbal declaration is not sufficient. The employment relationship would otherwise be deemed not to have been effectively terminated.
What is the amount of the severance payment with a sprinter clause?
The exact amount of the severance payment for a turbo clause depends on the respective termination agreement. There are differences from case to case. Your negotiating skills or those of a commissioned lawyer can play a significant role here.
Most compensation in a sprinter clause in the termination agreement is divided as follows:
- In every termination agreement, there is a certain amount of severance pay specified for the employee, which is referred to as the basic amount. Even if the employee does not leave the company prematurely with the help of the severance clause, there is an entitlement to payment of this amount.
- There is also the sprinter bonus. In most cases, employees receive a fixed amount of additional severance pay for each month that they leave the company earlier than planned. The employee should take a full month's salary as a guideline. The employer will try to negotiate this amount down. You should therefore expect to receive two months' salary as compensation for the two months that you resign early.
When drafting a turbo clause and the severance payment formulated therein, you should therefore definitely consult a lawyer from a specialist law firm. Especially if it is foreseeable that your employer will not agree to your terms. Above all, the individual agreement depends on negotiating skills. An experienced lawyer in employment law will maximize your chances and can save you money.
Does the sprinter clause affect my unemployment benefit?
This question arises if the employee has made use of their sprinter clause but cannot take up their new position or cannot take up their new position immediately. This is the case, for example, if the new employer has only loosely promised you that you can start straight away, but this does not materialize. In this case, the sprinter clause cannot be revoked. Its effects are then irrevocable.
In these cases, the employment agency can arrange for the unemployment benefit to be suspended. Up to 60% of the severance payments made by your employer will be deducted from your unemployment benefits. This means that you will not receive this money in the end, but your unemployment benefit will be reduced by this amount. This can happen in particular if the statutory notice period has been circumvented by the termination agreement and the turbo clause it contains.
Our conclusion on the sprinter clause
A sprinter clause in the employment contract has various advantages, including the possibility of accepting a new job more quickly and receiving a higher severance payment. However, it also harbors pitfalls if you make careless use of it and fail to comply with formalities. Early termination of your employment relationship using the sprinter clause must therefore be done carefully and, above all, correctly. We would recommend that you instruct an experienced employment lawyer to accompany you through the process. From drafting and agreeing the clause when terminating your employment relationship to the timely and formally correct use of the turbo clause - we are at your side with advice and support!
Our lawyers provide you with comprehensive advice on all employment law issues. We also represent your rights vis-à-vis the opposing party and, if necessary, before all labor courts. We will be happy to advise you in detail and individually on the subject of termination agreements and sprinter clauses, review all clauses and negotiate a lucrative severance payment with your employer.
Contact the law firm Haas und Kollegen now!
Rudolf-Diesel-Str. 5, 65760 Eschborn near Frankfurt
