🔹 Introduction

 Termination of an employment contract by mutual agreement is the most flexible and least contentious form of ending an employment relationship. It allows both parties – the employer and the employee – to establish mutual terms for the termination of the contract, including the date of termination and any potential settlements.
 

🔸 1. Legal Basis

• Labour Code – Art. 30 § 1 point 1

An employment contract is terminated: by mutual consent of the parties.

📌 Applies to any type of contract:
 – trial period,
 – fixed-term,
 – indefinite.
  

🔸 2. Initiator of the Agreement

The termination of the contract can be proposed by either party – both the employer and the employee.

• If the employee submits a proposal, the employer is not obligated to accept it.
• The agreement comes into effect only if both parties agree to it.

🔸 3. Form of Agreement 

• Preferably in writing, although the absence of written form does not invalidate it (for evidential purposes and for the PIP, a written form is recommended),
• The agreement may include:
  • the date of termination of the contract,
  • conditions for the transfer of property (e.g., laptop, car),
  • arrangements regarding severance or other settlements,
  • confidentiality or loyalty clauses (if not previously included).

🔸 4. Timing of Contract Termination

 📅 Any – the parties may:

• terminate the contract on the day the agreement is signed, or
• specify a specific date in the future (e.g., "as of May 31, 2025").

📌 Unlike a notice:

• notice periods do not apply,
• no reason for termination is required.

🔸 5. Legal Consequences

• Severance payment - Yes – if the conditions of the law on collective redundancies are met (e.g., >20 employees)
• Right to unemployment benefits - Yes – only if the initiative came from the employer or was mutual (not solely the employee's)
• Obligation to adhere to deadlines - ❌ No – the parties determine any final date
• Possibility of withdrawing the decision - Yes – but only with the consent of the other party

🔸 6. Advantages of Termination by Mutual Agreement

 ✅ For the employee:

• No stress related to a notice,
• Possibility of quicker departure (or extension of employment),
• Potential agreement on additional terms (e.g., recommendations, severance).

✅ For the employer:

• No risk of legal claims (e.g., for unjust termination),
• Orderly transfer of duties and property,
• Possibility to flexibly establish the date of termination.

🔸 7. Example – Template of the Record

Agreement on the Termination of Employment Contract
As of May 31, 2025, the parties mutually decide to terminate the employment contract concluded on June 1, 2021, between XYZ Ltd. and Jan Kowalski – by mutual agreement.
Date and signatures of both parties.

🔸 8. Accompanying Documents

✔️ Agreement on termination of the contract
 ✔️ Handover protocol (equipment, documents)
 ✔️ Work certificate – issued no later than on the day of termination of employment
 ✔️ Settlement of leave, equivalent, bonuses, etc.
 

📚 Legal Basis

• Labour Code, Art. 30 § 1 point 1
• Act on the promotion of employment and labor market institutions – Art. 75 § 1 (right to benefits)
• Act on collective redundancies – for severance (Journal of Laws 2003 no. 90 item 844)