AK service tip

Know how: Tips on termination by mutual agreement

AK expert Christoph Schribl explains what is important in the event of a mutually agreed termination,(Bild: Adobe Stock, AK Stmk Krone KREATIV,)

When an employment relationship is terminated, there is also the option of termination by mutual agreement. This can have a number of advantages for the employee. Employment law expert Christoph Schribl explains what needs to be considered.

Termination by mutual consent is a mutual declaration of intent by the employee and employer to terminate the employment relationship at a certain point in time. As there are no deadlines or dates to be observed, the employment relationship can be terminated on any day.

Consent required from both sides
Consent is voluntary for both parties. No one can be forced to agree to an amicable solution. One advantage of amicable termination is the elimination of the 28-day blocking period at the Public Employment Service.

In principle, there are no formal requirements for amicable termination. Termination by mutual agreement can be made verbally or in writing. For reasons of proof, termination by mutual agreement should always be made in writing.

The type of termination of the employment relationship is decisive for the "old severance pay": In the case of termination by the employer and termination by mutual agreement, there is an entitlement to severance pay. If the employee resigns, there is no entitlement to severance pay. Under the new severance pay law, there is an entitlement to payment in the event of termination by mutual agreement.

"Gewusst wie" is a service series of the "Krone" and the Chamber of Labor.