Question: Our company has an employee under an indefinite-term labor contract. The employee has now submitted a resignation. According to the law, the employee must give at least 45 days’ prior notice. However, in practice, both the company and the employee wish to terminate the contract immediately, without waiting for 45 days. Is this lawful?
Answer: Pursuant to Article 35 of the 2019 Labor Code, where the employee unilaterally terminates the labor contract, he/she must provide the employer with at least 45 days’ prior notice.
Nevertheless, the 2019 Labor Code also provides under clause 3, Article 34 that a labor contract may be terminated by mutual agreement between the parties. This means that, if both the company and the employee mutually agree to terminate the contract immediately, without waiting for the 45-day notice period, the law still recognizes the legality of such termination.
Accordingly, the immediate termination of the labor contract on the basis of mutual consent between the company and the employee is entirely lawful, provided that it is clearly documented in writing.
Consultation: labor law services
