What is termination by mutual consent and why do you pay more attention to it?

Have you been fired, but do you dread having to say that you have been fired during your next job application? Or do you have a new job in mind, and do you want to make the switch as soon as possible?

Then you could ask your employer to terminate your contract in mutual consultation. But think twice first, because it is not without consequences. Here are the highlights of what you have to take into account.


A contract of indefinite duration brings a certain degree of job security. However, either party can terminate the employment contract at any time. The notice period has been introduced to protect employers and employees in such a situation.

If you are dismissed, your notice gives you the opportunity to look for a new job before having to fall back on benefits. If you decide to leave, your boss can look for a replacement during that legally determined period while you continue to work for a while.

Severance pay

Does your employer prefer not to give notice of termination after you have been fired or resigned? Then he must pay you a cancellation fee. This is equal to the salary that you would receive during your notice period, including any benefits.

Only in the event of a serious error can the collaboration be immediately terminated without a cancellation fee. Because this only applies to facts such as theft, fraud, aggression, bullying, or sexual harassment, instant dismissal is rather exceptional.

Get started quickly

Although the notice period actually exists to help you, it can sometimes be quite annoying to perform a long notice. If you already have a new job in mind, for example. Termination by mutual consent is then a solution.

You and your employer must mutually agree that you will not perform a notice period or a much shorter one but that you also do not receive a notice fee as compensation. Or that you agree to a smaller compensation than what you are actually entitled to. Actually, it doesn’t matter what you agree: as long as you agree. Your employer, therefore, also has the right not to respond to this.

No discussion

Do you and your employer reach a deal? Then it is not mandatory to record the agreements in writing. In principle, an oral agreement is sufficient. Nevertheless, it is recommended to also put the agreements on paper and sign them so that no discussion is possible later. This way, you can go your own way without worries.

No benefits

Even if you are fired, it can be tempting to aim for termination by mutual agreement—your C4 states which party has terminated the employment contract.

‘Termination by mutual agreement’ looks just a little better. But be aware that in that case, you are not entitled to benefits. If you have been fired by mutual consent, you will not be involuntarily unemployed. So only use this option if you already have the certainty of a new income.

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