Mutual Termination of Employment in Austria (Einvernehmliche Auflösung)

An einvernehmliche Auflösung is a mutually agreed end to an Austrian employment relationship. Instead of one side giving formal notice to the other, the employer and employee sit down and agree together on a date the job will end.

This route is common in Austria because it avoids several rigidities of the other two exit routes: the statutory notice periods, the fixed notice dates, and in many cases the Arbeitslosengeld penalty that follows a plain resignation. This page explains how a mutual termination works, how it compares to the other two ways an Austrian job can end, and what it does and does not change for unemployment benefit and severance pay.

Information last verified on 22 July 2026. This page provides general legal information about Austrian law and does not constitute legal advice in an individual case.

What Is an Einvernehmliche Auflösung

An einvernehmliche Auflösung is an agreement between an employer and an employee to end the employment relationship on a date they both accept. Neither side is unilaterally terminating the contract; both sides consent to the same outcome.

Because the termination is consensual, the statutory notice machinery in § 20 AngG simply does not apply. The parties are not bound to end on a calendar quarter, a month end, or any other fixed Kündigungstermin. They can agree on any date at all, including an immediate end the same day it is signed.

This flexibility is the main practical advantage over either side giving formal notice. An employer who wants a fast, clean exit and an employee who wants to start a new job sooner than a notice period would otherwise allow can both get what they want through the same agreement.

Comparing the Three Ways an Austrian Employment Contract Ends

Austrian law recognises three main routes to end an ordinary employment relationship, and each carries different consequences for notice, Abfertigung and Arbeitslosengeld.

The last two rows are where a mutual termination differs most sharply from a plain resignation, and they are the two reasons an einvernehmliche Auflösung is often the counselled alternative when an employee wants to leave and both sides are willing to agree on terms.

The Arbeitslosengeld Wedge: § 11 AlVG

§ 11 Abs 1 AlVG withholds Arbeitslosengeld for four weeks from the end of the employment relationship where a worker's own fault ended it or where the worker "freiwillig gelöst" the relationship themselves, meaning a unilateral voluntary resignation. This four week withholding period is generally known as the Sperre.

A mutual termination is neither of those two things. Nobody unilaterally quit and nobody was dismissed for their own fault; both sides agreed together to end the relationship. Because of that, the Arbeiterkammer, the statutory chamber that advises employees on labour law, confirms that an einvernehmliche Auflösung generally preserves the Arbeitslosengeld claim rather than triggering the § 11 Sperre.

It is worth being precise about what this means. § 11 AlVG does not contain a sentence that names einvernehmliche Auflösung as an exception. The rule follows from what the statute actually penalises: self-caused endings and voluntary one-sided resignations. A mutual termination fits neither category, so the general rule is that the Sperre does not apply, but this is the outcome of how the AMS applies the wording, not an explicit carve-out written into the paragraph itself.

Avoiding the Sperre is also not the same as an automatic entitlement to Arbeitslosengeld. The ordinary Anspruchsvoraussetzungen still have to be satisfied on top of that, including having enough insured months (Anwartschaft), being available for work, and registering with the AMS. A mutual termination removes one specific obstacle; it does not replace the rest of the qualifying conditions.

If special protections apply, such as pregnancy, parental leave, or disability protections under separate legislation, additional formalities or approvals may come into play before a mutual termination can safely be agreed. Anyone in that situation should confirm the position with the Arbeiterkammer or a lawyer before signing rather than assuming the general rule described here applies without adjustment.

Effect on Abfertigung

How a mutual termination affects Abfertigung depends on which of the two Austrian severance systems covers the employment relationship.

Abfertigung NEU, the contribution-based system under the BMSVG that applies to relationships with a contractually agreed start after 31 December 2002, is not affected by the reason the relationship ends in the same drastic way ALT is. The contributions an employer has already paid into the BV-Kasse belong to the employee regardless of how the job ends, and contribution months carry forward to the next employer if the payout threshold has not yet been reached.

Abfertigung ALT works differently and this is where the choice of exit route matters most. § 23 Abs 7 AngG denies the Abfertigung ALT entitlement outright where the employee resigns. An einvernehmliche Auflösung is not a resignation in that sense, since the employer agreed to the termination rather than the employee unilaterally quitting, so the ALT entitlement is generally preserved through a mutual termination in a way it would not be through a plain Selbstkündigung.

For an employee with meaningful pre-2003 continuous service who wants to leave a job, this makes an einvernehmliche Auflösung considerably more attractive than resigning outright, since it can avoid both the Arbeitslosengeld Sperre and the loss of an ALT lump sum in the same agreement.

When an Einvernehmliche Auflösung Is Typically Used

Employers and employees reach for a mutual termination in a range of situations: an employee has a new job lined up and both sides want a faster exit than notice would allow, a position is being restructured and neither side wants a contested dismissal, or an employee wants to leave without the resignation penalties described above and the employer is willing to agree.

Because the terms are negotiated rather than fixed by statute, the agreement can also cover matters the notice rules do not address on their own, such as a reference, the handling of remaining leave, or the treatment of a bonus. None of that is guaranteed by law; it depends entirely on what the two sides agree to put in the document.

An employee should not feel obliged to accept a proposed mutual termination. Nothing requires an employee to sign one, and an employee who prefers the certainty of the statutory notice period in § 20 AngG, or who is unsure about the Abfertigung or Arbeitslosengeld consequences, can decline and require the employer to give formal notice instead. See the notice periods page for the full statutory scale that applies if either side goes that route, and the severance pay page for how Abfertigung NEU and Abfertigung ALT work in detail.

Frequently Asked Questions

What is an einvernehmliche Auflösung?

An einvernehmliche Auflösung is a mutual termination of an Austrian employment relationship. The employer and employee agree together on an end date, instead of either side unilaterally giving notice under § 20 AngG.

Do I need to give notice for an einvernehmliche Auflösung?

No. Because both sides agree to the termination, neither the statutory Kündigungsfrist nor the statutory Kündigungstermin under § 20 AngG has to be observed. The parties can agree on any end date, including an immediate one.

Does a mutual termination affect my unemployment benefit?

Generally not in the way a resignation does. § 11 AlVG imposes a four week Sperre on Arbeitslosengeld when a worker ends the relationship themselves or is at fault, and a mutual termination is treated as neither, so it usually does not trigger that Sperre.

Is the Arbeitslosengeld Sperre avoided automatically with an einvernehmliche Auflösung?

The Sperre in § 11 AlVG targets self-resignation and fault based dismissal specifically, and a mutual termination falls outside both categories under AMS practice. The general Arbeitslosengeld conditions, such as insured months and registering with the AMS, still have to be met on top of that.

How is a mutual termination different from resigning?

A resignation, or Selbstkündigung, is a one-sided decision by the employee that must follow the notice period in § 20 AngG and generally triggers the four week Sperre under § 11 AlVG. A mutual termination is agreed by both sides, needs no notice period, and does not usually trigger that Sperre.

What happens to Abfertigung in an einvernehmliche Auflösung?

Abfertigung NEU contributions in the BV-Kasse are never forfeited, whatever the reason the relationship ends. Abfertigung ALT is different: it is forfeited on a resignation under § 23 Abs 7 AngG, but a mutual termination is not a resignation, so ALT entitlement can be preserved.

Can an employer pressure an employee into an einvernehmliche Auflösung?

An einvernehmliche Auflösung has to be genuinely agreed by both sides. An employee is not obliged to accept a proposed mutual termination and can instead require the employer to give formal notice under § 20 AngG if they prefer that route.

Should a mutual termination be in writing?

Austrian law does not require a particular form for most einvernehmliche Auflösungen, but a dated written agreement stating the agreed end date avoids later disputes over when the employment relationship actually ended and what was agreed.