Question: My company has an employee working under an indefinite-term labor contract. This employee has submitted a resignation and, according to the law, must provide at least 45 days' prior notice. However, both the company and the employee wish to terminate the contract immediately without waiting for the full notice period. Is this legally permissible?
Answer:
According to Article 35 of the 2019 Labor Code, if an employee unilaterally terminates an indefinite-term labor contract, they are required to give the employer at least 45 days’ notice.
However, Clause 3 Article 34 of the 2019 Labor Code provides another basis for termination: a labor contract may be terminated by mutual agreement. This means that if both the employer and the employee agree to end the contract immediately, the law allows it, and the 45-day notice requirement does not apply.
Therefore, the immediate termination of the labor contract based on mutual consent is completely lawful, provided that the parties record this agreement in writing to avoid any future dispute.
Consultation: Labor Law Services
