How to Terminate an Employment Contract?
Is a Mutual Termination Agreement the Solution for Ending an Employment Contract?
A mutual termination agreement allows any employee, in agreement with their employer, to terminate their permanent employment contract by mutual consent. However, certain formalities must be observed.
Indeed, since 2008, it has been possible for employers, their HR Directors and employees to end a permanent contract by mutual agreement using the approved Cerfa form no. 14598, the only valid document for this type of termination.
You can also complete it online.
This document certifies the willingness of both parties to separate, after due consideration, without haste, while respecting a withdrawal period and oversight by the DIRECCTE.
The contract termination date is set by the parties without having to observe a notice period.
In this regard, the Court of Cassation has just reiterated that any mutual termination of a permanent contract must take the form of an approved mutual termination agreement, or risk being reclassified as a dismissal without real and serious cause.
In this case, an employee had, in the presence of her employer, drafted and signed a letter stating the termination of her employment contract “by mutual agreement.”
According to the Court of Appeal, the letter drafted by the employee constituted not a resignation, as the employer claimed, but indeed a mutual termination of the employment contract. The judges noted that this termination had not been formalized within the legal framework of the approved mutual termination agreement and concluded that it should be considered a dismissal without real and serious cause. This ruling was upheld by the Court of Cassation.
Therefore, exercise caution and do not hesitate to consult our time-sharing HR Directors regarding this type of termination, particularly for protected employees, for whom the Cerfa form no. 14599*01 and the procedure are very specific.
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