The mutual agreement termination is -always- popular.
Since its implementation in 2008, its great flexibility, making it a win-win mechanism, has continuously attracted interest. In the last quarter of 2023, a record number of 130,053 mutual agreement terminations were recorded.
Neither resignation nor dismissal, the mutual agreement termination allows the employer to negotiate the departure of their permanent employee by mutual consent.
Its advantages for the company are tangible: a shorter notice period, no need for justification, and prior negotiations reducing the risk of conflicts… As for the employee, they are entitled to the same severance pay as in the case of dismissal and unemployment insurance coverage.
A victim of its own success? With the government’s objective of “full employment,” a reform of the mutual agreement termination as we know it could be considered. Already in September last year, the cost of mutual agreement termination was increased to 30%. Stay tuned!
