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Concluding an agreement

The employer and employee may at any time agree on the termination of the employment relationship.

It is recommended that the agreement on termination be made in writing. The party who later claims that the termination of the employment relationship has been agreed must be able to prove the existence and content of such a contract.  The agreement is not legal and does not need to be complied with if the contract on terminating the employment relationship is invalid (see section on employment contract, invalidity of contracts).

As a rule, the invalidity of a contract is not caused by the fact that the employee has second thoughts after the conclusion of the contract. A contract is usually valid if the matter has been discussed several times before the contract is concluded or if, at the employee’s request, sufficient time has been given to consider the matter before signing the contract.

When concluding an agreement on the termination of employment, it should be taken into account that it will also affect the right to receive unemployment allowance. Normally, unemployment allowance is paid after a five-day suspension period.

If the employee has resigned or has caused the termination of the employment relationship through their own conduct, as a rule, they are not entitled to daily allowance for a period of 45 days. The conclusion of an agreement on the termination of an employment relationship is interpreted as the employee having caused the termination of the employment relationship themselves. If the contract includes additional compensation for the termination of the employment relationship (e.g. a golden handshake), the compensation will be phased over the period during which the person is not entitled to daily allowance.

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