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Upon dismissal by mutual agreement, the employer must clarify with the employee the reasons for signing the agreement on termination of employment contract and explain the consequences of signing the agreement. The agreement must contain mutually beneficial terms for both parties. |
The absence of a voluntary and conscious expression of the employee’s will to resign may be evidenced by:
- the employee’s signing of a ready-made resignation form and agreement printed by the employer
- the absence of any compensation or other benefit for the employee in the agreement
- dismissal virtually on the same day
- an ongoing conflict
- an employee’s request to postpone the date of dismissal and an employer’s refusal to do so.
These conclusions were reached by the Second Cassation Court in its Ruling dated August 7, 2025 in Case No. 88-15839/2025.
The employee decided to challenge their dismissal by mutual agreement, referring to the absence of a will to be dismissed, as the reason for the dismissal was a conflict with the head of the organization and their assistant, and the head offered the employee dismissal by mutual agreement during a meeting, threatening to dismiss the employee on negative grounds. The employee claimed that they were depressed at the time of signing the agreement and were unable to fully understand the consequences.
The courts of first instance and appeal dismissed the employee’s claims, considering that the employee voluntarily performed consistent actions with the intention to terminate the employment contract: they signed the agreement, did not object to the dismissal, did not request to cancel the agreement, did not mention any coercion in their resignation letter, did not contact the labor inspectorate, and did not provide any evidence of coercion.
The Cassation Court did not support these conclusions. The courts did not take into account the employee’s arguments about the hasty nature of the dismissal, the lack of reasons for dismissal given their financial situation and lack of alternative employment. The courts also failed to investigate the circumstances preceding the signing of the agreement. The employee had no opportunity to cancel the agreement before dismissal, as the termination agreement and the dismissal order were signed on the same day.
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We recommend considering current judicial practice when dismissing employees by mutual agreement of the parties in order to minimize the risks of wrongful dismissal claims and additional payments. |
Marillion’s legal team is always ready to support clients and help navigate safe termination of their relationships with employees.
