Golden handshake

A Golden handshake generally describes the early termination of a contract, with the consent of a contracting party is to be achieved through cash payments or other benefits of the other party.

Lump sum contracts

A golden handshake is common in lump sum contracts that the service provider unpleasant customers offering a certain sum for a termination of the contract before the end of the minimum contract period. This was especially at the beginning of the introduction of so-called flat rates for Internet access the case. In this common customers who specifically wrote to the mixed calculation ISP messed brought (so-called power users ) by a high monthly volume of data and submits them an offer to end the contract early and for that to get a transfer fee.

Today, most contracts have either a short term or the terms and conditions contained passages in which excessive use is excluded (→ Fair Use Policy ). This form of golden handshake is therefore used only rarely.

Compensation

A settlement allows companies to divest itself of employees who should not really be dismissed on the ground of dismissal protection, without having to issue a compulsory redundancy. If an employee is a high severance payment is paid at the voluntary departure from the company, this is called also golden parachutes. For older workers, the fee may be such that it - often in conjunction with an early retirement - may start earlier than usual in his retirement without loss of income.

See also compensation in Labor, Pension ( pensions )

Acquisitions

Swell

• Contract Law