Any employee can agree with their employer on the termination of their employment contract by mutual consent, regardless of the nature of the contract:

• the type of employment contract: fixed-term/permanent contract; or
  
• the sector of activity: public or private sector.

Form and content of termination by mutual consent

In order to be valid, termination by mutual consent must be:

• drawn up in writing and in duplicate;
• signed by the employer and the employee.

As a general rule, the parties sign a termination agreement by mutual consent which:

• indicates the identity of both parties;
• states their common wish to terminate the employment contract;
• specifies the date on which the termination will take effect.

Rights and obligations of the employee

The employee cannot claim:

• severance pay: even if they have worked for their employer for more than 5 years, unless it is otherwise agreed between the parties;
• unemployment benefits: termination by mutual consent between the parties is considered to be equivalent to the voluntary loss of employment.

However, the employee is entitled to :

• the 13^th month on a pro rata basis and to any other benefit of the contract which constitutes an element of salary;
• a compensatory indemnity for:
  • days of leave not taken at the time of termination of the employment contract;
  • the balance of the hours of leave remaining in their time savings account.

The employer may also, if they so wish, pay the employee a voluntary severance pay for termination by mutual consent of the parties. In such cases:

• the parties sign a termination agreement by mutual consent of the parties;
• the employee may in principle benefit from tax exemption for the severance pay received.

Procedures

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