Quick Overview
| How to |
Who Can Use It |
When the employment relationship ends |
| Agreement |
The employee and employer mutually |
on an agreed-upon date |
| Notice |
Both the employee and the employer |
after the notice period has expired |
| Immediate termination |
Both the employee and the employer, but only for statutory reasons |
usually by delivery |
| Termination during the probationary period |
Both the employee and the employer |
usually by delivery |
| Expiration of the agreed term |
for a fixed-term employment contract |
on the last agreed-upon date |
Are you unsure which method of terminating your employment is best for you, or whether the notice of termination you received is valid? Have our attorney review your situation.
Termination of Employment by Mutual Agreement
They say that an agreement is always better than an argument. This also applies when ending a working relationship. Termination by mutual agreement is a process in which the employee and employer agree on the terms. Whether it’s due to a new job offer, life changes, or other reasons, reaching an agreement can be a quick solution without the employee having to wait for the notice period to expire.
If you want to terminate your employment by mutual agreement, you must first agree with your employer on the termination date. The agreement must be in writing, and each party must receive a copy. Unlike with a notice of termination, there is no notice period here—the employment relationship ends exactly on the date you mutually agree upon. However, neither the employer nor the employee can unilaterally force the other party to sign the agreement.
If you have a good relationship with your employer and can reach an agreement, terminating your employment by mutual agreement is a favorable way to leave your job. But be careful—even in this case, it’s important to know what terms to agree upon with your employer. The agreement may include terms regarding severance pay, taking vacation time, and even a letter of recommendation. The agreement must always be in writing to be valid. If you need help drafting it, don’t hesitate to contact us.
Based on our experience, we recommend not automatically signing a termination agreement just because your employer presents it to you as a “formality.” Especially if the employment is ending for reasons attributable to the employer, it is advisable to review the exact terms of the agreement before signing to ensure they align with your entitlements.
What is the difference between a notice of termination and a termination agreement?
|
Notice of Termination |
Agreement |
| Consent of the other party |
Not required |
Both the employee’s and the employer’s consent are required |
| Nature |
Unilateral legal act |
Bilateral legal act |
| Notice period |
As a rule, the notice period runs |
The notice period does not run |
| When the employment relationship ends |
Upon expiration of the notice period |
On the date agreed upon by both parties |
The main difference between termination and a mutual agreement is that termination is a unilateral legal act —you do not need the other party’s consent. A mutual agreement, on the other hand, is valid only if both the employee and the employer agree to it. Furthermore, a notice period generally applies in the case of a termination, whereas in the case of a mutual agreement, the parties can agree on virtually any date for the termination of the employment relationship.
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Notice of Resignation Given by an Employee
As an employee, you may give notice at any time, for any reason or without giving a reason. Notice must be given in writing. The notice period is generally at least two months, and as of June 1, 2025, it begins on the day the notice is delivered to the employer. It ends on the day corresponding to the date of delivery; if there is no such day in the last month, it ends on the last day of that month. The notice period may be extended or its timing adjusted by written agreement.
Example: If your employer receives your notice of termination on September 15 and the standard two-month notice period applies to you, your employment will generally end on November 15. The old rule, under which one had to wait until the first day of the following month, no longer applies to new notices of termination.
If you’re planning to give notice, we recommend doing so only once you have at least some certainty about a new position or another backup plan. This will save you the stress of losing your income. Resigning is the standard way to leave a job, but it pays to plan ahead a little.
Termination by the Employer
Termination by the employer is a slightly different story—and usually not as pleasant. In order for an employer to terminate your employment, they must have specific grounds for doing so, as outlined in the Labor Code. Common grounds include organizational changes (e.g., elimination of a position), loss of an employee’s qualifications, or a serious breach of employment duties.
The length of the notice period also varies from case to case. Typically, it is at least two months, but for certain terminations related to failure to meet the prerequisites or requirements for performing the job or to a breach of work duties, the Labor Code stipulates a minimum of one month.
At the same time, the law provides you, as an employee, with greater protection, as you are entitled to severance pay (if your employment is terminated for organizational reasons). Severance pay can be a welcome bonus or at least a partial consolation for the blow that termination by the employer can cause.
We knowfrom experience that the problem often lies not only in the reason for the termination itself, but also in whether the employer formulated it correctly and complied with all legal requirements. Therefore, when receiving a termination notice from your employer, we recommend checking not only the reason stated in the document but also the date of delivery, the length of the notice period, and any entitlement to severance pay.
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Tip: The circumstances under which you can be terminated for redundancy are clearly specified. What if your employer ostensibly eliminates your position, only to immediately re-create it and fill it with someone else? Read about this issue in our article.
Immediate Termination of Employment
In some cases, even a good working relationship can end “from one moment to the next.” Immediate termination of employment is an extraordinary means of terminating an employment relationship, which the Labor Code permits only in precisely defined situations.
- An employer may terminate an employment relationship immediately if an employee violates duties related to their work in a particularly gross manner, such as by seriously violating work discipline or legal obligations.
- An employee may terminate the employment relationship immediately, for example, if the employer fails to pay wages, salary, or their equivalent within 15 days after the due date. Another reason may be a serious threat to health, substantiated by an appropriate medical opinion, if the employer fails to allow the employee to perform other suitable work within the statutory time limit.
Immediate termination of employment is an extreme measure and must be justified. In such cases, it is advisable to consult with a legal representative first, as both the employee and the employer may suffer consequences if the process is handled incorrectly.
Have you been subjected to immediate termination of employment and doubt whether your employer actually had a lawful reason for it? Send us the document for review. In cases of termination, deadlines are often crucial for further legal defense, so it pays to address the situation promptly.
Immediate Termination vs. Notice of Termination
The difference between immediate termination of employment and notice of termination lies primarily in the speed and conditions of application. With notice of termination, the employment relationship continues for the duration of the notice period. With a valid immediate termination, the employment relationship ends without a notice period. However, immediate termination cannot be used arbitrarily—there must be one of the statutory grounds, and the document must be in writing.
Termination of Employment During the Probationary Period
If you’ve started a new job and realize it’s simply not the right fit for you, you have the option to terminate your employment during the probationary period. However, the employer may also use this option. The probationary period can last up to four months, or up to eight months for managerial employees, and its purpose is to determine whether the employee and employer are a good fit.
The advantage is that the employment relationship can be terminated by either party without giving a reason and without the usual notice period. Termination must be in writing. Terminating an employment relationship during the probationary period can be quick and allows you to freely move on to new opportunities or take time to think things over before starting a new job. However, the employer may not terminate the employment relationship during the probationary period within the first 14 calendar days of an employee’s temporary incapacity to work or quarantine.
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Tip: If your health has deteriorated to the point where you are no longer able to perform your job, you can resign for health reasons. Read about how your employer must proceed in this case and what you are legally entitled to.
Termination of a Fixed-Term Employment Relationship
An employment relationship established for a fixed term generally ends automatically upon the expiration of the agreed-upon term. Therefore, there is no need to give notice or enter into an agreement. However, a fixed-term employment relationship may also end earlier through one of the standard methods—such as by mutual agreement, notice of termination, immediate termination, or termination during the probationary period. If an employee continues to work after the agreed term has expired with the employer’s knowledge, the law considers the employment contract to be for an indefinite term under certain conditions.
What to Do with Unused Vacation Days?
If you still have unused vacation days remaining, your employer may schedule you to take them during your notice period. The employer typically determines when you take your vacation, provided they comply with legal requirements. If you do not use up your vacation time before the end of your employment, you are entitled to compensation equal to your average earnings.
Starting a New Job and Overlapping Employment Periods
The termination of one employment and starting a new job can easily be two consecutive events without any gap between the jobs. That is the ideal scenario. However, if there is a full calendar month between jobs during which neither your employer nor the government pays your health insurance premiums, you’ll need to arrange for your own health and social insurance payments. Health insurance is mandatory, so if you are not employed, self-employed, or fall into one of the categories for which the government pays premiums, you must pay for it yourself.
Your old and new employment relationships may even overlap for a certain period of time. The Labor Code does not generally prohibit holding two jobs simultaneously. Be careful, however, about engaging in competing activities: if your other gainful activity is the same as your current employer’s line of business, you generally need their prior written consent.
Summary
An employment relationship may be terminated by mutual agreement, notice of termination, immediate termination, or termination during the probationary period; a fixed-term employment relationship may also end upon the expiration of the agreed-upon term. Termination by mutual agreement requires the consent of both the employee and the employer and takes effect on the agreed-upon date. Notice of termination is a unilateral act and generally involves a notice period of at least two months, which, as of June 1, 2025, typically begins on the date of delivery. Immediate termination may only be used for statutory reasons, and termination during the probationary period is generally possible without stating a reason. Before the employment relationship ends, also check your vacation balance, any severance pay, and the continuity of your health insurance. Terminating your employment should be a well-considered and, ideally, planned decision. If you have a new job offer, take the time to prepare for a smooth transition. Whatever method of termination you choose, be mindful of your rights and obligations.
Frequently Asked Questions
Can I resign while on sick leave?
Yes. The protection period primarily limits the employer’s options; an employee may submit a notice of termination even while on sick leave.
Can I withdraw a notice of termination that I've already submitted?
Yes, but only with the other party’s consent. Both the revocation of the notice of termination and the consent to it must be in writing.
Do I have to state a reason in the termination agreement?
In general, stating a reason is not a requirement for the agreement to be valid. In some situations, however, recording the reason may be important for documenting the circumstances surrounding the termination of employment and related claims.
Can my employer reject my resignation?
No. An employee’s notice of termination is a unilateral legal act, and you do not need the employer’s consent to give it. However, it must be in writing and properly served.
Can I start working for a new employer before my current employment contract ends?
Generally speaking, yes. However, be aware that engaging in a competing business activity that is identical to your current employer’s line of business may require the employer’s prior written consent.
What happens if the last day of the notice period falls on a weekend?
Employment may end on a Saturday, Sunday, or a holiday. The end of employment is not automatically postponed to the following business day.
