Termination of a Working Student Contract: Reasons for Termination, Procedure & Severance Pay

A working student contract (Werkstudentenvertrag) is a popular form of employment for students who want to gain practical experience while improving their income during their studies. However, in some cases, it may be necessary to terminate such a contract.

The reasons for termination can vary, ranging from behavioral changes in the student to operational reasons on the part of the employer.

In this blog article, we will explore the different aspects of terminating a working student contract. We will discuss the legal framework, explain the different types of termination, and outline the possible reasons for termination.

Additionally, we will cover topics such as termination protection, severance pay, and employment references. Lastly, we will provide recommendations for both employers and working students and offer insights into other issues surrounding working student contracts.

I. Introduction

Importance of Working Student Contracts

A working student contract is an employment agreement between an employer and a student who works part-time while pursuing their studies. The primary focus is on the practical experience that the student can gain during their employment. In return, the student receives financial compensation and the opportunity to complement their studies with hands-on experience, which enhances their career prospects.

For employers, working student contracts provide a flexible and cost-effective way to employ qualified workers. They also offer the opportunity to identify potential future talent and build long-term professional relationships.

For students, these contracts provide a chance to gain valuable experience in their chosen field while earning an income. This can lead to increased financial independence, and students can also build professional networks that may help them later in their job search.

The significance of working student contracts has grown in recent years, as more students seek to work alongside their studies, and companies increasingly value employees with practical experience.

What are the Reasons for Termination?

There are various reasons why a working student contract may be terminated. The most common are:

1. Termination for Behavioral Reasons:This type of termination occurs when the student violates their obligations under the employment contract. Examples include refusal to work, theft, bullying, or other forms of misconduct.
2. Termination for Personal Reasons:Personal reasons for termination arise when the student is unable to perform their job due to personal circumstances. Examples include illness, a study dropout, or other situations that make it impossible for the student to continue working.
3. Termination for Operational Reasons:Operational reasons occur when the employer needs to eliminate the student’s position for economic or business-related reasons. Examples include company closures or restructuring.

In any case, the employer must provide written notice and adhere to statutory or contractual notice periods. Extraordinary termination without adhering to a notice period is only permitted in exceptional cases, such as when the student commits a serious breach of their obligations.

How to Write a Termination Letter for a Working Student Contract?

When terminating a working student contract, the termination letter should always be in written form. The following key points should be considered:

1. Recipient: The letter must be addressed to the specific working student. It should clearly identify the individual whose contract is being terminated.
2. Date: The date on which the termination is being issued should be clearly stated. This is important for documenting the exact timing of the termination.
3. Reason for Termination: The reason for the termination should be explained thoroughly and in clear terms. Provide concrete facts that support the reason for ending the contract (optional for ordinary termination).
4. Notice Period: The legally or contractually required notice period must be observed. This depends on the length of the employment and any applicable labor laws or collective agreements.
5. Reference Letter and Severance: The letter may also mention the possibility of a reference letter or severance pay, if applicable. Whether the student is entitled to these depends on various factors such as the duration of employment or the reason for termination.
6. Signature: The termination letter should be signed by an authorized representative of the company, such as a manager or HR personnel.
7. Sending the Termination: It is recommended to send the termination letter by registered mail and keep a copy of the letter for your records. This ensures you can prove that the termination was properly issued.

It is recommended to send the termination letter by registered mail and keep a copy of the letter. This ensures that you can later prove the termination was properly issued.

II. Legal Framework

Legal Regulations for Working Student Contracts

Working students (Werkstudenten) are generally subject to the same legal regulations as regular employees. A working student contract falls under the provisions of the German Civil Code (Bürgerliches Gesetzbuch - BGB), as well as any applicable collective agreements (Tarifverträge) and company agreements (Betriebsvereinbarungen).

Some key legal provisions for working students include:

• Working Hours: Working students are typically allowed to work no more than 20 hours per week in order to maintain their status as students. Exceeding this limit may lead to the loss of student status and associated benefits, such as reduced social security contributions.
• Compensation: Working students are entitled to fair compensation, which must at least meet the legal minimum wage. The specific amount of compensation is outlined in the employment contract. Employers and students may negotiate higher wages, depending on the nature of the
• Vacation: Working students are entitled to paid vacation, which is regulated in either the employment contract or the applicable collective agreement. The statutory minimum vacation days typically apply, but these can vary depending on the sector or contract. (See Working Student Contract Vacation for more details.)
• Termination: As mentioned earlier, both the employer and the working student can terminate the contract, with adherence to the statutory or contractually agreed notice periods. These are typically specified in the employment contract or the applicable collective agreement.
• Social Security Contributions: Working students are generally covered by student health insurance, and their social security contributions are reduced, as long as their salary remains below certain thresholds. Students working part-time do not pay full contributions for health, pension, and unemployment insurance but are still required to contribute to pension insurance if their earnings exceed a certain limit.

It is crucial to understand that the exact regulations for working students can vary depending on the industry, company, and specific contract. Therefore, working students should carefully review the terms of their employment contract and any applicable collective agreements. In case of doubt, students are encouraged to consult their employer, a union, or seek advice from a legal or union advisory office to fully understand their rights and obligations under the working student contract.

Can Working Students Be Terminated Without Cause?

In principle, a working student contract can be terminated by either party without the need for a specific reason. The right to terminate is based on the employment contract and applicable legal regulations.

However, the employer must observe the statutory notice periods when terminating a working student. These are outlined in § 622 of the German Civil Code (BGB) and depend on the length of employment. For working student contracts, the notice period is generally shorter compared to regular employment contracts.

There are also certain grounds that justify extraordinary termination (i.e., termination without notice). These may include serious breaches of duty by the working student, such as theft or refusal to work.

It's important to note that termination without a specific reason and without adhering to the legal notice period is generally not permissible. In such cases, the working student may be entitled to claim damages or file a wrongful dismissal claim.

Can a Working Student Contract Be Terminated Immediately After Exmatriculation?

When a working student is exmatriculated, they typically lose their status as a working student and, consequently, the benefits that come with that status. In this case, there is generally the option to terminate the working student contract without notice (i.e., immediately). However, even in this situation, the termination must be in writing, and legal or contractual notice periods must still be observed.

Most working student contracts include specific provisions regarding termination in the event of exmatriculation. For example, the contract might stipulate that the working student must inform the employer of their exmatriculation without delay and that the contract automatically ends upon exmatriculation.

However, it is always recommended to carefully review the terms of the contract in such situations and check what specific termination conditions apply. If in doubt, consulting a lawyer or a union advisory office can help clarify what notice periods or procedures need to be followed.

When Does a Working Student Contract End?

A working student contract typically ends when the agreed-upon employment period concludes. The exact duration is specified in the employment contract and can vary based on the company’s needs and the length of the student’s engagement.

However, there are situations where the contract can end earlier than planned, such as:The project the working student was hired for is completed ahead of schedule.The student can no longer perform their duties due to personal reasons.

Additionally, the working student contract can also be terminated through a formal termination process. In this case, the legal or contractually agreed notice periods must be followed.

It’s advisable to clearly define the termination conditions in the contract to avoid misunderstandings or disputes later on.

III. Types of Termination

Types of Termination for a Working Student Contract?

There are several types of termination that apply to a working student contract, depending on the situation and the contract terms. The most common types include:

1. Ordinary Termination: An ordinary termination is a termination that follows the notice period agreed upon in the contract. This type of termination can occur for various reasons, such as economic changes or company restructuring.
2. Extraordinary Termination: Also known as immediate termination, this type of termination can occur without notice and takes effect immediately. It can only happen for a significant reason, such as serious breaches of the employment contract or illegal actions.
3. Change Termination: A change termination involves terminating the existing contract while offering a new one with modified terms. The offer typically includes changes to the working conditions, such as a reduction in salary or changes in working hours.
4. Termination by Mutual Agreement: A termination by mutual agreement is when both the employer and the employee agree to end the employment relationship. This type of termination is usually used when both parties are satisfied with the decision to end the contract.

It is important to note that the application of the different types of termination depends on legal regulations and the employment contract. Both employers and employees should always inform themselves about the relevant legal requirements before proceeding with a termination.

IV. Reasons for Termination

What are the reasons for terminating a working student contract?

The reasons for terminating a working student contract can vary depending on the circumstances. In general, a termination can be issued by an employer for various reasons, such as:

1. Behavioral Reasons: This occurs when the working student violates their obligations under the contract. Examples include consistent lateness, refusal to work, poor performance, theft, or workplace misconduct. Such breaches can justify a extraordinary (immediate) termination.
2. Personal Reasons: If the working student is unable to perform their duties due to personal circumstances, the employer may initiate termination. This could be due to long-term illness, loss of student status (e.g., graduation or dropping out), or other personal reasons that make it impossible for the student to continue working.
3. Operational Reasons: A termination might occur due to economic difficulties or restructuring within the company. If the business can no longer afford to employ the working student or their position is no longer needed, an ordinary termination with notice would apply.
4. Loss of Student Status: A key requirement for a working student contract is that the individual is actively enrolled in a university. If the student graduates or is exmatriculated (loses student status), the contract can be terminated as they no longer qualify for the working student role.
5. Mutual Agreement: In some cases, both the employer and the working student may agree to end the contract by mutual consent, especially if both parties see no further benefit in continuing the employment relationship.

It’s important to follow the appropriate legal and contractual requirements when terminating a working student contract, especially in terms of notice periods and valid reasons for termination.

V. Termination Protection

Termination Protection for Working Student Contracts?

In contrast to full-time or part-time employees, working students do not have general protection under the Employment Protection Act (Kündigungsschutzgesetz - KSchG) due to their limited working hours. This means that employers can typically terminate the employment relationship with a working student without providing specific reasons or having a valid, significant cause.

However, there are some exceptions. A working student may, in certain cases, benefit from termination protection under the Maternity Protection Act (Mutterschutzgesetz) or the Disability Rights Act (Schwerbehindertengesetz). For example, if the working student is pregnant or has a disability, they can only be terminated with the approval of the relevant authority.

In addition, a working student may also enjoy special protection in cases where the reason for termination is related to personal circumstances. This means that termination can only occur for significant reasons, and the employer must provide valid justification for the dismissal.

This may be the case, for example, if the working student is being discriminated against based on their gender, race, or sexual orientation. In such situations, the working student has the right to challenge an unlawful dismissal and, if necessary, claim compensation for any damages suffered.

VI. Severance Pay and Employment Reference

What Severance Entitlement Do Working Students Have?

In general, working students do not have a legal entitlement to severance pay when their employment ends. This is particularly true when the employment relationship ends through an ordinary termination by the employer or the working student themselves.

Working student contracts do not typically entitle students to severance pay upon termination. This is especially true if the employment relationship ends due to an ordinary termination initiated by either the employer or the student.

However, in some cases, a severance payment may be considered, particularly when the termination is due to business-related reasons. In such cases, the employer may need to conduct a social selection process (Sozialauswahl), where the working student’s circumstances must also be considered.

If the social selection process is not handled correctly, or if the working student is the only employee affected by the termination, they may have grounds to claim severance.

It is important to note that severance payments are generally negotiable between the employer and the working student. There are no legal rules on the amount or obligation to pay severance, unless it is agreed upon in the employment contract or through negotiations.

For more information on settlement agreements: Settlement agreements are contractual arrangements between two parties, usually made after employment ends. They outline important details such as severance payments, the transfer of client contacts, or confidentiality agreements.

Creation of an Employment Reference

Employers are generally obligated to provide their employees with a qualified employment reference at the end of the employment relationship. This also applies to working students whose employment has ended. The purpose of the employment reference is to help the working student successfully apply for new jobs in the future.

The employment reference must be created in accordance with the legal requirements of § 109 of the Trade Regulation Act (Gewerbeordnung - GewO). It must be truthful, considerate, and complete, and should objectively reflect the working student's performance and skills. It should not include any wording that could portray the student in a negative light or limit their future career prospects.

Employers should be careful when drafting an employment reference for a working student and adhere to common formulations and standards. It is advisable to have the reference reviewed by human resources or a lawyer to ensure that it complies with legal requirements and does not contain unclear or misleading statements.

Working students have the right to review the employment reference before it is issued and may request changes or additions. Employers should respect this right and prepare the reference in consultation with the working student. A poorly written or incomplete employment reference could negatively impact the student's career opportunities and should therefore be avoided.

Content of the Employment Reference

An employment reference for a working student must, in accordance with § 109 of the Trade Regulation Act (GewO), be truthful, considerate, and objective. It should include the following sections:

1. Introduction: The reference typically begins with an introduction that includes the working student’s name, their role within the company, and the duration of their employment
2. Job Description: The next section should outline the tasks and duties the working student was responsible for during their employment. This should be a precise and as comprehensive a description of the activities as possible to accurately reflect the student’s role
3. Performance Evaluation: Following the job description, an evaluation of the working student’s performance is provided. This typically includes an assessment of their professional competence, work ethic, teamwork skills, and social competence. The performance evaluation should be phrased positively and in a considerate manner, even if the working relationship was not entirely smooth.
4. Closing Statement: The reference concludes with a closing statement, thanking the working student for their contribution and wishing them all the best for their future career.

Sample Termination Letter for Working Student Contract

[Your Name]
[Street Address]
[Postal Code] [City]

[Company Name]
[Employer/Contract Partner]
[Street Address]
[Postal Code] [City]

Date: ______

Termination of Employment Contract dated ______

Dear Ms./Mr. [Employer/Contract Partner],

I hereby terminate the employment contract dated ______ in an ordinary and timely manner, effective on ______ or the next possible date.

Please confirm receipt of this termination letter and provide written confirmation of the termination date of the employment contract.

I kindly request that you issue me a qualified employment reference to support my future career opportunities.

I would like to sincerely thank you for the collaboration and wish you all the best.

Sincerely,
[Your Name]

VII. Conclusion

Summary of Key Points

In this article, we provided important information and legal regulations regarding working student contracts. We explained what a working student contract is and its significance for both employers and students. Additionally, we discussed the reasons for terminating a working student contract and showed how to write a termination letter.

One crucial point was addressing whether working students can be terminated without cause. We clarified that termination without valid grounds is not lawful, and employers must adhere to statutory notice periods.

We also explained whether a working student contract can be terminated immediately after exmatriculation. We highlighted that exmatriculation is not a reason for automatic termination unless explicitly stated in the contract.

Furthermore, we discussed when a working student contract ends and emphasized the importance of having clear termination terms in the contract to avoid misunderstandings or disputes.

Finally, we emphasized that students entering into a working student contract should be aware of their rights and responsibilities. It is essential to thoroughly read the contract and seek clarification if necessary. Similarly, employers should follow legal regulations and issue terminations only when they are legally justified. This ensures a fair and lawful approach to dealing with working students.

Recommendations for Employers and Working Students

Based on the information provided in this article, here are some key recommendations for both employers and working students:

For Employers:

• Ensure Clear Contracts:Make sure the working student contract includes all necessary information, such as the duration, salary, and working hours.
• Follow Legal Regulations:Adhere to legal requirements when terminating working students, and always respect the notice periods.
• Avoid Unjust Termination:Do not issue a termination without a valid reason, as this could lead to legal consequences.
• Resolve Uncertainties Early:Address any ambiguities in the contract early on to prevent potential conflicts or misunderstandings

For Working Students:

• Thoroughly Review the Contract: Carefully read the working student contract and ensure you understand and agree to all the terms and conditions.
• Know Your Rights: Be aware of the legal regulations and your rights as a working student.
• Understand Notice Periods: Familiarize yourself with the termination notice periods and know what to do in the event of a termination.
• Maintain Clear Communication: Communicate openly and clearly with your employer to avoid misunderstandings and to represent your interests effectively.

It is crucial for both employers and working students to maintain open communication and adhere to legal regulations to ensure a smooth and successful collaboration.