What is dismissal by agreement of the parties?
The relationship between an employee and an employer is established in an employment contract. A contract can be terminated in different ways by the Labor Code of the Russian Federation Article 77. General grounds for termination of an employment contract:
- At the initiative of the employee - the so-called dismissal at his own request.
- At the initiative of the employer. It’s not that it’s impossible to do this, but it’s quite difficult. The employee must have committed some serious violation. For example, skipping work without a good reason.
- When a position is reduced.
- Under circumstances beyond the control of the parties. Let’s say a court verdict has come into force that prohibits an employee from holding this position.
- By agreement of the parties. This method involves the employee and the employer agreeing on the terms under which the employee agrees to leave the position. Usually these are additional cash payments.
To understand why an agreement between the parties is needed, let’s consider common cases in which it is used:
- The employee copes extremely poorly with his duties and is generally useless to the company. But formally he complies with the terms of the employment contract. So it is impossible to fire him under the article. Therefore, the employer is ready to pay him just to get rid of him.
- An employee takes up a vacant position that needed to be vacated for someone else. The reason is very doubtful, but it would be strange to pretend that this does not happen.
- The company is undergoing a reorganization. And it is much easier to formalize dismissal by agreement of the parties than layoffs.
That is, for the employer it is an opportunity to quickly and easily get rid of an employee. And for the employee - to receive compensation for the fact that he loses his job without objective reasons.
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