Pursuant to the Labour Code mutual termination and resignation appears to be one of the safest legitimate tools available to the employer to effectuate termination of employment. Under Article 97 of the Labor Code an employer and employee are free to reach agreement on termination of their employment relationship at any time and they are free to choose any date as the termination date. Termination of employment based on such mutual agreement is comparatively simple. In addition, such termination is very rarely challenged in courts. All this makes the variant of termination by mutual agreement very attractive to employers.
No notice period is required to terminate employment on this ground. Although the employer will not be legally required to pay an...