Agreement on Termination of Employment
The agreement on termination of employment is a means of terminating an employment contract established by the Labor Code. It is a contractual obligation that expresses the mutual consent of the employer and the employee to terminate the employment relationship. Unlike a notice of termination, both parties must voluntarily agree to the termination (as opposed to a notice, which is unilateral). The agreement not only expresses the consent to terminate the employment but also outlines the terms of termination, and often the reason for the termination as well.
Agreement on Termination of Employment and Other Forms of Termination
For all cases of termination of employment, it is necessary to execute them in writing and deliver them to the other party (employee/employer).
Notice of Termination (N) VS Agreement on Termination of Employment (A)
The employment relationship ends when the notice period expires (N) / ends on the agreed-upon date (A).
The notice must be delivered in a legally prescribed manner / delivered by signature (A).
Both parties (the employee and the employer) have the right to challenge the notice in court (N) / it is practically impossible to challenge in court (A).
In certain cases, there is a legal entitlement to severance pay (N) / severance pay must usually be negotiated (A).
Immediate Termination of Employment (I) VS Agreement on Termination of Employment (A)
A necessary condition is meeting the reasons stipulated by the Labor Code (I) / can be done at any time, even without reason (A).
The employment relationship ends upon delivery of the immediate termination (I) / ends on the agreed-upon date (A).
Legal effects occur only upon proper delivery (I) / becomes effective upon signature (A).
Both employee and employer can challenge it in court (I) / it is practically impossible to contest in court (A).
No entitlement to severance pay arises (I) / severance pay can be negotiated (A).
It is evident that the agreement on termination of employment is a very advantageous method of termination for the employer. If the employer wants to end the employment relationship with the employee, they will typically prefer to choose the route of an agreement on termination of employment, as it brings only benefits and reduces the risks of improper procedures from notice of termination and/or immediate termination. The employer may also use the agreement on termination of employment to reduce/adjust the employee's right to severance pay.
Main Features of the Agreement on Termination of Employment
The main features of the agreement on termination of employment are:
Mutual Consent: Both parties must agree to the termination under the agreed terms.
Written Form: The agreement must always be in writing, and both parties should sign it.
Delivery: The agreement becomes effective for both the employee and the employer upon signature, meaning there is no need to follow complex delivery procedures according to the Labor Code.
Flexibility: This allows the content of the agreement to be adjusted and the termination to occur under conditions other than those prescribed by law.
Reason for Termination: The agreement does not necessarily need to include the reason for termination (which might be disadvantageous for the employee in terms of severance pay).
Know Your Rights as an Employee
The agreement on termination of employment is often seen as a less confrontational way to end the employment relationship and can help maintain good relations between the employee and the employer. However, as an employee, you may be at a disadvantage in the case of such an agreement, and its wording could ultimately be less favorable than if the employment were terminated through other means prescribed by the Labor Code (particularly in regard to severance pay).
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O vaše práva zaměstnance se stará Advokátní kancelář Ing. Mgr. Ladislav Šmarda, se sídlem v Olomouci a Praze, ČAK 18060
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