Termination Via Mutual Agreement

Draft letter to the other party. Please indicate that you want to terminate your contract by mutual agreement. Present a list of reasons why you think termination of the contract is the best way for both parties. Ask for an answer that frees you from the agreement. In recent years, the „break-up agreement“ has become an increasingly popular method for terminating employment contracts. This process of terminating indeterminate contracts, introduced in France by the law of 25 June 2008, has increased by more than 8 per cent in 2017 and by 3.9% in 2018, with 437,700 (1) contracts concluded in 2018. However, despite its simplicity of substance and simplicity of design, the mutual denunciation agreement continues to raise questions and raise jurisprudence before the Supreme Court of France (Court of Cassation). The termination of an employment contract by a reciprocal termination agreement means that, in such circumstances, the worker does not benefit from the employment security provisions of Article 18 and the related articles of the Labour Act and introduces an action for reintroducation. However, an agreement with mutual termination may be annulled if there is a corrupt intention of the parties in the performance of the reciprocal termination contract or if a staff member has signed the reciprocal termination contract with a reservation. In the event of the cancellation of reciprocal termination agreements, reinstatement action may be brought if the conditions for the application of the employment security provisions under Article 18 of the Labour Act are met. One of the drawbacks for employers who use a redundancy by mutual agreement is that it might take longer to clarify the administrative details about how someone lets go. This requires additional resources, such as time and staff, to develop the details of an agreement. According to Articles L.

1237-11 and following articles of the French Labour Code, individual reciprocal termination agreements are currently the most successful form of amicable termination of an indeterminate employment contract. However, their apparent lightness is called into question by the intervention of the French Labour Agency (DIRECCTE), which plays an important role in the dismissal procedure. Thus, individual termination of the contract for protected workers is authorized by the labour inspectorate (labour inspection), while for unprotected workers (i.e. workers` representatives, members of the Economic and Social Committee, trade union delegates; Candidates in company elections, employees mandated by a union representative of collective bargaining, union defenders, etc.) it was merely approved by the employment agency. The figures and case law show that some workers are willing to challenge the mutual dismissal contract they have agreed to. As a result, the Supreme Court of France is regularly asked to set the conditions for the implementation of the individual mutual denunciation agreement and to sanction employers.