Sprinter clause in termination agreements: What employees should know

In a termination agreement, the parties often agree on a specific end date. Until that date, the employment relationship formally continues, often combined with a release from work and continued payment of salary.

A sprinter clause allows the employee to leave the employment relationship earlier. Usually, the employee must notify the employer within a short period, for example one week or a few working days in advance.

The advantage is flexibility: the employee can start a new job earlier.

If the employee leaves earlier, the employer often saves salary for the period up to the originally agreed end date. For that reason, agreements often provide that the severance payment increases if the employee makes use of the sprinter clause.

This additional payment is often referred to as a sprinter bonus.

Put simply: the employer saves salary, and part of that saving is paid to the employee as additional severance.

An employee is released from work until 31 December. The termination agreement provides that the employee may leave earlier on short notice if a new job is found. If the new job starts on 1 October, the old employment relationship ends three months earlier.

If a sprinter bonus has been agreed, the severance payment may increase for those saved months. The exact amount depends on the wording of the agreement.

A sprinter clause is not automatically good or bad. The specific wording is decisive.

Important points include:

• From which date may the employee leave early?

• What notice period must be observed?

• Does the declaration have to be signed in writing or is an email sufficient?

• Does the severance payment increase in the event of early exit?

• How is the additional severance payment calculated?

• Are partial months taken into account proportionately?

• When does the additional severance payment become due?

• What happens to release from work, holiday and salary?

• Is income from a new job offset against existing payment claims?

The last point is particularly important. If employees take up a new job during a release period, it may depend on whether the agreement contains clear provisions on the sprinter clause and on the offsetting of other income.

For employees, a sprinter clause can be particularly valuable if they find a new job quickly. Without such a provision, there may be uncertainty about whether and how an earlier transition is possible.

A well-drafted sprinter clause can help make the transition easier and at the same time secure an additional payment.

At the same time, the agreement should be reviewed for potential disadvantages. If the severance payment does not increase or if it remains unclear how income from a new job is treated, disputes may arise later.

The tax treatment of a sprinter bonus may be relevant. Case law has held that an additional severance payment based on a sprinter clause may, under certain conditions, be subject to favourable tax treatment.

However, this should not be assumed automatically. The tax assessment depends on the specific structure, the payment date and the circumstances of the individual case. Specific tax advice should be obtained for the exact tax treatment.

More on the taxation of severance payments

A sprinter clause can be very useful for employees. It can create flexibility, make it possible to start a new job earlier and increase the severance payment.

At the same time, the exact wording is very important. Before signing a termination or settlement agreement, employees should check whether the sprinter clause is clear, fair and economically sensible.