May Be Terminated Upon Mutual Agreement

Legal compensation related to the termination of an employment contract (i.e. severance pay and severance pay) does not in principle apply to valid termination contracts. Nevertheless, the parties can agree on another plan for the payment of such compensation. In addition, when considering the “reasonable benefit” criteria, the Supreme Court ensures that additional compensation and payments are made as a factor affecting the validity of a reciprocal termination agreement. Other means of terminating employment contracts include the exchange of redundancies between the employer and the worker on statutory deadlines and immediate dismissal for just reasons, with the death of a worker and at the end of the agreed term of fixed-term employment contracts. After 2003, reciprocal termination agreements were widely used in practice to avoid the legal and financial risks associated with invalid dismissal under the provisions of Labour Safety Act 4857. The most important condition for the performance of a valid reciprocal termination contract is the existence of “reasonable performance criteria” arising from the court decision. The Supreme Court applies the validity of the reciprocal termination contract to the existence of a reasonable benefit from the worker`s point of view. The main reason for the Supreme Court`s “reasonable utility” criteria in reciprocal termination agreements is that, since the worker is granted termination of the employment contract by the employer with severance pay and severance pay, the preference for another method, which is not more advantageous, cannot be considered appropriate at the normal stage of his life. This is why, in several cases, and particularly in cases where the request for a reciprocal termination agreement is made by an employer, the Supreme Court expects, in addition to the legal rights allegedly paid in the event of dismissal by the employer and not by a reciprocal termination agreement, certain additional benefits equal to “reasonable benefits”. Several Supreme Court decisions have invalidated reciprocal termination agreements, effectively terminating the use of “employer termination” in the absence of additional payments or benefits and, as a result, related re-employment remedies have been accepted by the Supreme Court.