Compensation clause
A compensation clause is usually included in a Termination agreement or a court settlement. It often states that all financial claims arising from the employment relationship and on the occasion of its termination are settled. Although such a clause is common and rarely objectionable, caution is still advised. Because they are generally to be interpreted broadly. This means that, for example, claims to a pro rata 13th month's salary, Christmas bonus, bonuses (see also Special payments) or claims for damages due to Bullyings can no longer be asserted. If such claims exist, they should be submitted to the Severance payor claims for damages due to
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