Dismissal by mutual agreement is one of the ways to terminate an employment relationship between an employee and an employer. This decision must be mutual and satisfy both parties. Let’s look at the main stages that should be considered when dismissing an employee by mutual agreement.
- Initiative.
- Discussion of conditions.
- Term of dismissal;
- Financial matters (final salary, compensations, payments);
- Fulfillment of remaining duties.
- Mutual agreement.
- Document processing.
- Entry into the employment record book;
- Issuance of the employment record book;
- Preparation of settlement documents;
- Familiarization with the dismissal order.
- Payment of compensations.
- The employee must be paid the final salary for the work performed (this includes payment for worked days, weekends, and holidays);
- The agreement may provide for compensation in case of dismissal. This compensation may be set as: (monthly or one-time payment; compensation for unused vacation).
- Payments for maintaining confidentiality.
- Payments for fulfilling specific conditions, if stipulated in the employment contract.
For dismissal by mutual agreement, the consent of both the employer and the employee is required. This ensures legal security for both parties.
Dismissal by mutual agreement can be initiated either by the employee or by the employer. In any case, it is important to discuss this issue, taking into account the reasons and circumstances that led to the decision to dismiss.
On this basis, dismissal can occur at any time, but only with the mutual consent of the employee and the employer.
Dismissal can take place either on the day the proposal is made or at any other time.
After one of the parties has expressed the desire to resign or to dismiss, it is necessary to discuss the conditions of dismissal, namely:
All agreements on dismissal are contained in the final mutual agreement. The mutual agreement can be made either in writing or orally.
However, the termination of the employment contract by mutual agreement must be properly executed in written form.
On the day of dismissal, the employer is obliged to provide the employee with a copy of the dismissal order, a written notice of the amounts accrued and paid upon dismissal, and to make the settlement within the time limits specified in Article 116 of the Labor Code, as well as, upon the employee’s request, make the appropriate entry about the dismissal in the employment record book kept by the employee (Article 47 of the Labor Code).
The employer is obliged to process the dismissal of the employee in accordance with the norms of labor legislation.
This includes:
When an employee is dismissed by mutual agreement, payments may vary depending on the agreement of the parties.
The main types of payments that may be offered in such dismissal:
If the employee has not used all days of annual leave, the employer must compensate them in monetary form.
If the employee incurred material expenses in connection with the dismissal (for example, relocation expenses to a new workplace), this may also be taken into account upon dismissal.
If during employment the employee was entitled to bonuses or rewards, the employer may decide to pay them at the time of dismissal.
Depending on the specifics of the employment contract and the agreement, other payments may also be provided for, such as:
Dismissal of an employee by mutual agreement can be an effective solution for both parties if the established procedure is followed. It is best to seek assistance from a lawyer or a professional HR in Ukraine specialist to ensure that everything is processed in accordance with current legislation.
It is important to keep in mind that such a process requires open communication and mutual understanding, which helps to avoid conflicts and misunderstandings.
For legal consultation regarding dismissal by mutual agreement and proper documentation, you can contact the law firm “First Legal” in Ukraine by filling out the application form or calling us at: +38 (044) 35-35-164, +38 (067) 306-89-89, +38 (063) 45-85-448, +38 (099) 367-89-89.