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Terminating employment contracts by mutual agreement: 10 years later – Laurent Guardelli and Léa Fonseca – ILO

The Modernisation of the Labour Market Act dated June 25, 2008 recently celebrated its tenth anniversary. The act introduce a legal procedure for terminating employment contracts by mutual agreement.

The procedure was immediately successfull and its success has continued over time. For example, no fewer than 36,600 mutual termination agreements were signed in May 2018, an increase of more than 5-5% compared to the previous month, while 421,000 were signed, an increase of 7.8% compared to 2016.

The procedure’s success may derive from its flexibility and simplicity; however, despite other successfull aspects , the procedure is not without its pitfalls.

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