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What Is Mutual Termination of Contract

The parties to an agreement have the possibility at any time to terminate the agreement by mutual consent. If the contract is no longer respected, if the parties have ceased their business activities or if the contract can no longer be faithfully performed, the parties may formally terminate the contract in writing. Termination has no influence on liability for breaches of the contract that occurred before the end of the contract. Verify that your contract includes a notification provision. Many contracts require that all formal correspondence between the parties be in writing. Note the other party`s address if specified in the provision of the notice of your agreement. When communicating with the other party, please comply with all the terms of your notice. Each state has its own rules and regulations regarding the terms of the contract. In addition, one State may have a rule or regulation while another State may require the opposite. For this reason, it is best to seek legal advice on how to deal with a termination agreement. Contracts are legally binding agreements that the parties enter into voluntarily. The parties always have the possibility to terminate a contract by mutual agreement. You also have the option to create a new contract.

One or more meetings take place between the employer and the employee during which they agree to terminate the contract of indefinite duration by mutual agreement and to discuss the terms of termination. Amicable termination of the contract takes place when a contract is no longer respected, cannot be performed or the company ceases its activities.3 min read The termination of the contract results from an agreement signed by the employer and the employee, the terms of which are set by law to ensure that each party can accept or reject the termination. The right of residence of persons whose residence permit gives them the right to pursue a professional activity is not affected by the termination of their employment contract. These include persons holding a temporary or multiannual residence permit for „private and family life“, a residence permit „family member of a European national“, a permanent residence permit, a „talented (family) passport“, etc. A mutual termination of the contract is a letter from one party to another acknowledging the mutual termination of a contract between the two. The procedure for terminating the contract may be initiated either by the employee or by the employer. Under no circumstances may either party compel the other party to terminate a contract of indefinite duration in this manner; This is an amicable termination. If the employer or employee wishes to resign, he informs the other party in writing, usually by registered letter with acknowledgment of receipt or by hand delivery. In this case, the contract of indefinite duration continues to run under the same conditions. In the event that the termination of the contract affects other contracts, these contracts must be renegotiated.

This must be done before the contract is terminated. Although you terminate a contract, you are still required to comply with the terms of the other contracts. Under no circumstances may the specific severance pay be less than what the employee would have received if he had been dismissed for personal reasons. The specific terms of the agreement may include the possibility of terminating the contract within a certain period of time. This is called the cooling-off period. This generally applies when transactions take place elsewhere, for example. B, at a trade show or home sale. If a contract is terminated by mutual agreement, the employee receives a „specific severance pay“. The amount of compensation can be negotiated with the employer and is entitled to certain exemptions from social security and income tax under certain conditions.

Write a letter to the other party. Indicate that you wish to terminate your contract by mutual agreement. Present a list of the reasons why you believe that terminating the contract is the best way for both parties. Ask for an answer that exempts you from the agreement. Employees whose employment contract of indefinite duration has been terminated by mutual agreement may be entitled to unemployment benefits provided that they meet all the necessary criteria. Keep the following in mind when terminating a contract by mutual agreement. The responsible DIRECCTE (or dieCCTE) has 15 working days to complete its assessment, starting the day after receipt of the application. The purpose of the approval procedure is to verify that an appropriate procedure has been followed and that both parties have given their free consent: compliance with the withdrawal period, completion and signature of the application form, payment of the legal termination indemnity. A letter of mutual termination of contract is an acknowledgment of a contract between two parties that has been terminated by mutual agreement.

The agreement sets out the termination terms determined by the employer and employee at the preliminary meeting(s), namely at least the date of termination of the employment contract and the amount of severance pay. This is a courtesy letter that helps facilitate the right conditions between the two parties despite the termination, without further discussion or dispute. If the employee or employer wishes to terminate the contract, he proposes it to the other party and an informal meeting is held to discuss the terms of the termination. The CDI runs under the same conditions as before. Employers and employees may decide by mutual agreement to terminate the contractual relationship and jointly determine the conditions for termination of the employment contract of indefinite duration. You can then sign a mutual termination agreement. Do not attempt to terminate a contract without first obtaining the consent of the other party. Also, do not terminate without first consulting a lawyer to ensure that you are not held responsible for the breach of contract. The TeleRC portal is an online service for requesting approval of a reciprocal termination of the contract. Users must complete an approval form and ensure that the information entered is compliant (mandatory fields completed, legal deadlines met, termination fee at least minimum legal, etc.). The approval form contains the termination agreement. However, it is possible to attach to the form a mutual termination agreement explaining the conditions for termination of the contract agreed between the employee and the employer.

If the amount of severance pay provided for in the company`s collective agreement is higher than the statutory severance pay, this amount is taken into account when determining the specific severance pay. Keep in mind that when you terminate a contract, you may have reasons to terminate the contract for cause if the other party is unwilling to accept the termination, but you have determined that they have breached a substantial part of the contract. Termination of a contract does not affect liability for breaches of the contract that occurred before the end of the contract. TeleRC`s online service cannot be used to apply for a permit for this type of employee. The employer must use a special form to request permission to terminate a protected employee`s contract. This form (CERFA n° 14599*01) is available at the address If the modification of the contract is minor, both parties can agree to prepare and sign an addendum to the existing contract. If the terms are significantly changed, it may be easier to terminate the existing contract and renegotiate a new one. In any case, it is better to consult a lawyer. The date of termination of the contract must take into account the time required for direccte or DIECCTE to approve the termination of the contract (up to 15 calendar days). Employers and employees have the option to reconsider and revoke the mutual termination agreement within 15 calendar days, from the date of handwritten signature of the permit application form. The employment contract is terminated after a certain procedure after approval of the termination agreement by the competent Regional Directorate of Enterprises, Competition, Consumption, Labour and Employment (DIRECCTE) or for the overseas departments and regions by the Directorate of Enterprise, Competition, Consumption, Labour and Employment (DIECCTE).

It is considered accepted and the contract of indefinite duration ends on the date indicated in the approval form (at the earliest the day after the expiry of the 15-day evaluation period without further notice). As the application for authorisation has not been rejected or deemed inadmissible, a registration certificate can then be obtained via the TéléRC portal. In a termination agreement, the decision of the parties to terminate the contract is formally recorded. .

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