How to file a resignation letter by agreement of the parties
If an employee plans to leave the company, he has the right to formalize the end of the employment relationship by agreement of the parties. If the initiative comes from the employee, he is obliged to prepare an application, which is submitted in writing.
Notice! There is no clearly established form, however, when drawing up it is necessary to take into account important points:
- According to the Labor Code, the application must be made in writing;
- The application is submitted to the head or employee of the HR department in person or sent by mail;
- In the application, the employee notifies of his intention to terminate the employment contract;
- It is necessary to indicate the date of the final working day. In this case, the wording is important. It is necessary to write not “from July 20”, but “the final working day is July 20”. This formulation will avoid discrepancies;
- At the end of the application, you must write the date of application and leave the signature of the employee.
ATTENTION! Look at the completed sample agreement on termination of an employment contract by agreement of the parties:
The application must reflect the following information:
- In the upper right corner the addressee is indicated (full name of the organization, full name, position of director), below - the applicant’s data (full name, employee position);
- The main part indicates a request to terminate the employment contract by agreement of the parties, indicating the end date;
- The final part must reflect the date of submission of the application and the signature of the applicant;
- It is worth noting that the employee must submit a letter of resignation by agreement of the parties if it was not possible to previously conclude an agreement on the procedure for terminating the employment relationship.
The employee himself chooses the day for submitting such an application. If dismissed by agreement of the parties, the employee is not required to work 2 weeks as if dismissed at his own request.
In such situations, the parties determine the date of termination of the employment contract through negotiations. Does an employee have the right to withdraw his resignation letter? Yes, the employment relationship can be continued if the employee withdraws his resignation by agreement of the parties and the employer agrees to continue the employment relationship, i.e. mutual agreement will be reached.
ATTENTION! View the completed sample letter of resignation by agreement of the parties:
Dismissal by mutual consent
Dismissal by agreement of the parties implies that the employer and employee do not object to the termination of the employment relationship, but, on the contrary, want the contract to be terminated on terms that satisfy both. The statement in this case is a formal proposal from the subordinate to enter into an agreement to cancel the employment contract.
This option is recognized by lawyers as the most civilized, because by coincidence, in the distant future, a meeting with an offended subordinate or a dissatisfied employer is possible. By parting in this way, the employee has the desire to change his place of work while maintaining the normal entry in the work book, and having also received all the compensation due to him under the contract. The leader pursues much more goals and opportunities.
- Act independently, without involving a trade union organization, which a priori will defend the rights of a subordinate.
- Dismiss any employee, including preferential categories of employees: disabled people, pregnant women, and those on maternity leave.
- Terminate the employment contract at any time, even during the employee’s absence due to illness.
- Get rid of an unwanted employee without scandal and interference from the labor inspectorate or judicial authorities.
The employer can also use this basis to reduce the number of personnel while officially maintaining the approved staff.
The legislative framework
The grounds for dismissal by agreement of the parties are Articles 49 (clause 1), 50 and 77 of the Labor Code of the Russian Federation, namely its first paragraph. The process of canceling a contract is described in Article 78 of the Labor Code. It determines the possibility, eligibility and course of action. According to its provisions, neither party has any restrictions on choosing the date and conditions for terminating the contract on this basis.
At the same time, the relationship between employer and employee is regulated by the Civil Code of the Russian Federation. The conditions for ending an official relationship are partially described in Article 452.
Features of the procedure
The dismissal procedure, regardless of the circumstances that caused it, must fully comply with the requirements of Labor legislation. To comply with all legal norms, you need to follow a certain algorithm of actions.
- Showing initiative. It must come from one of the parties (or both at once). The first one verbally offers a solution to the problem, the second one agrees.
- Discussion. The employer and the subordinate must go through this stage and agree in general terms on the conditions that will be specified in the relevant document.
- Preparing a resignation letter. An employee leaving the company must correctly draw up a document and submit it for consideration within the specified period.
- Manager's consent. He must consider the petition within three days, after which he must put a “I do not object” resolution and a personal signature, essentially approving the subordinate’s decision to leave.
- Drawing up an additional agreement to terminate the contract. It specifies all the conditions acceptable to both parties.
- Making an order. The preparation is carried out by an employee of the personnel department, and the head of the enterprise or organization signs.
- Making an entry in the work book and full payment with payment of earnings and all due compensation. Done on the last working day.
Advice! The application can be submitted at any time, even while on vacation or sick leave. At the same time, Labor legislation does not require service; the terms of departure are agreed upon by the parties.
Application for leave by agreement
There is no unified form for writing a letter of resignation by agreement of the parties, but there are many samples, you can choose one of them to use. Experts recommend paying special attention to the drafting of the document, since lack of completeness of information or incorrect errors can lead to the cancellation of the agreement.
The paper is compiled in any form, but the following is recognized as the optimal structure.
- A cap. The name of the head of the enterprise, his surname, and initials are indicated here. Below you need to place the applicant’s details (full name, position, unit name).
- Text. Contains a request for dismissal indicating the period, its form and legal justification.
- Final part. Includes the date of filing the petition and the employee’s personal signature with a detailed transcript.
Sometimes the participants in the process agree that all the conditions are recorded directly on the application form, which from a legal point of view can replace the agreement. Here you also need to use correct wording and enter the correct information.
- Number and date of execution of the contract that is subject to termination.
- Date, month and year of termination of employment.
- Conditions of dismissal (payments due, their amount and period of issue, use of vacation).
- Time and place of transfer of material assets, if any were assigned to the employee.
The application is written in two copies, both must be endorsed. One remains with the employee, the other is transferred to the manager.
Sample
There is no universal form of application for dismissal by mutual consent, which would be mandatory for all organizations, but there are many samples suitable for use in drawing up the document. The wording can also be arbitrary, since “dismiss by agreement of the parties” and “terminate the employment contract by ...” are intended for the same situation. Below is an example of a completed form.
Drawing up an agreement between the parties on termination of the contract
The agreement reflecting the terms of termination of the employment contract between the employer and the subordinate does not have a unified form, so it can be written in any form, but must be written down on paper. The following structure is generally accepted:
- Document's name.
- Its details (number and date of compilation).
- Information about the employer (name, OGRN, INN, surname, initials, position of manager).
- Information about the employee (full name, passport details, position, structural unit).
- Details of the contract to be terminated (date of execution and number).
- The basis for termination of the TD, namely the agreement of the parties.
- Listing of conditions, including financial obligations of the manager (salary, compensation, bonuses, severance pay).
- An indication that there are no mutual claims.
- Signatures and details of management and employee.
The document is sealed with the employer's seal and a note is made indicating the receipt of one copy by the other party.
Employee calculation
The dismissal procedure involves settlement with the employee on the last day of work. If the termination of the employment relationship occurs by mutual agreement, the employer is obliged to pay the subordinate the following:
- wages for hours worked;
- compensation for vacation if it was not used (in the amount of salary);
- severance pay.
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It is important to know! The latter is accrued if this item is specified in the collective agreement or other internal regulations. Art. 178 of the Labor Code provides for the payment of additional compensation in the event of dismissal of an employee by mutual agreement. The employer determines its amount independently.
All funds are issued to the employee within the time limits specified by law. So, according to Art. 140 of the Labor Code of the Russian Federation, full payment is made on the last day of work at this enterprise.
Labor legislation
The procedure for dismissal by agreement of the parties is described in Article 78 of the Labor Code of the Russian Federation. According to this article, the labor relationship between an employee and an employer can be terminated at any time by agreement of the parties.
In addition, the relationship between employee and employer is regulated by the Civil Code of the Russian Federation. Partially, the conditions for ending an employment relationship are reflected in Article 452 of the Civil Code of the Russian Federation. It follows that the employer and employee themselves determine the procedure for establishing and terminating employment relationships. In this case, the parties have the right to terminate the employment contract at any time by agreement of the parties. Thus, it is assumed that the employment relationship can be terminated during sick leave or a probationary period.
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Amendments to an employment contract, as well as its termination, are made in the manner prescribed by law, unless other legal acts and agreements are provided in accordance with the specifics of the enterprise or position held. Either party has the right to apply to the court to terminate the employment relationship if the other party refused to reconsider the terms or terminate the relationship, as well as in the case where no response was received to the application to amend or terminate the employment contract.
Let us remind you that a response to the other party’s application must be provided within 30 days.
Severance pay upon dismissal due to reduction
Do you need to work 2 weeks if you quit at your own request? Read here.
What payments are due upon dismissal by agreement of the parties, read the link:
What should the agreement contain?
The agreement, subject to the basic rules of office work, must be drawn up according to the same principles as the rest of the company’s documentation. As with any document, the termination agreement has mandatory clauses and a main part, in which variations are possible.
Required details:
- the name of the business document itself is “Agreement” (written at the top center of the sheet);
- date and place of drawing up the agreement (placed on both sides of the sheet);
- the employer's side (full name of the company, details of the manager) may be further abbreviated to the designation “Employer”;
- reference to a document on the basis of which a person has the right to resolve personnel issues (for example, the Charter of an LLC);
- the side of the resigning employee (position and full name without abbreviations) can be shortened to the designation “Employee”;
- the main part is the actual terms of the agreement;
- signatures of both parties (you can supplement them with details - the legal address of the company and the home address of the employee);
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If the company uses a seal, it is affixed to signatures or their decoding.
Attention! If the agreement is not drawn up on the company’s letterhead, the last point before the signatures is to indicate its details (legal address, Taxpayer Identification Number), and on the part of the employee - his passport details and place of residence.
Documents required for registration of dismissal
Important! The procedure for terminating the contract by agreement of the parties will be carried out correctly if the following documents are prepared:
- A written agreement to terminate the employment relationship, certified by the signatures of both parties, indicating the date of termination of the employment contract. If the parties have agreed on the amount of compensation, then it should be mentioned in the agreement;
- If the agreement has not been formalized in writing, the employee draws up a statement. The statement confirms the intention of one of the parties (in this case the employee) to terminate the employment relationship;
- An order in form T8 is prepared by the employer. Clause 1 of Art. is indicated as the basis for termination of the employment contract. 77 of the Labor Code of the Russian Federation, as well as the wording “agreement of the parties”. In addition, the order specifies documents that confirm the mutual intention of the parties to terminate the employment relationship.
Therefore, to formalize dismissal by agreement of the parties, a document is required confirming that both parties have expressed a desire to terminate the contract. Such confirmation can be an agreement certified by the signatures of the parties. In addition, confirmation is the employee’s statement of dismissal by agreement of the parties and the order of the head of the enterprise.
Possible errors when preparing documents
Competently drafting and submitting a letter of resignation is considered one of the main stages of the procedure for terminating relations by agreement of the parties. Since there is no unified writing pattern, it is enough to adhere to the standard form. Despite this, inaccuracies are made by both HR employees and staff. The following errors are considered the most common.
- Lack of reason for leaving or its incorrect formulation. The form must indicate that the subordinate is asking to be dismissed by agreement of the parties on the basis of clause 1 of Art. 77 Labor Code of the Russian Federation.
- The date of termination of the contract is not specified. Usually the day of departure is determined in advance, and this fact is reflected in the agreement. But the application must contain all the necessary information, including this.
Another mistake is the insufficient detail of the conditions for terminating the contract. The agreement must clearly spell out all the nuances of the oral agreement. Of particular importance are the following information:
- basis of care;
- date of dismissal;
- the amount of compensation and the day of their payment;
- timing of the transfer of material assets (if the employee is responsible for them).
A carefully drafted document will help avoid disputes and misunderstandings in the future.
Step-by-step procedure for dismissal by agreement
The basis for this type of dismissal is the mutual intention of the employee and employer to terminate the employment relationship.
Remember! The dismissal procedure consists of several stages:
- Negotiating terms of dismissal that satisfy both parties. The employee and employer should come to an agreement through negotiations and establish the conditions under which the employment relationship will be terminated;
- Execution of a written agreement on the termination of cooperation, indicating the conditions and date. It is also possible to draw up an application from the employee, which will reflect similar information;
- The personnel service employee prepares the T-8 order and familiarizes the employee with it against signature;
- Entering information about dismissal into the employee’s personal card;
- Making an entry in the employee’s work book;
- Handing over the work book to the employee.
- Calculation and issuance of wages and compensation to employees. In addition to the main ones (salary and compensation for unused vacation), additional payments are possible if this has been previously agreed with the employer and reflected in the agreement. The final payment to the employee is made on the last day of being at work.
The dismissal procedure by agreement of the parties does not require the mandatory signing of an agreement. An application from the employee and a corresponding order from the employer are sufficient.
Watch the video. How to formalize dismissal by agreement of the parties?
When to apply
The employee submits a notice of resignation 14 days before the expected date of termination of employment or earlier, unless other conditions have been previously agreed upon.
After considering the application, an order is issued to dismiss the employee by agreement of the parties.
Until the employee leaves the workplace, the HR employee prepares all the documents necessary for dismissal (order, entry in the work book, etc.), and the accounting department prepares the final payment.
Compensation upon dismissal by agreement of the parties and other payments upon settlement
At some enterprises, in accordance with the standard employment contract, the payment of severance pay is provided, including cases when dismissal occurs by agreement of the parties. However, these compensations are not provided for by law. The amount of compensation is established through negotiations between the employee and the employer.
Such compensations do not relate to Article 217 of the Tax Code of the Russian Federation; accordingly, they are not subject to personal income tax and are not subject to social contributions, such as, for example, wages. However, the same article states that the amount of compensation should not exceed the employee’s average earnings for three months.
Attention! In case of dismissal, the employer is obliged to provide a statement of calculation indicating the accrual:
- Salaries for the last month;
- Compensation for unused vacation;
- Pre-agreed severance pay.
It is worth noting that upon termination of employment in the organization, the employee is required to receive a work book with a notice of dismissal (date of dismissal, article, dismissal order number). In addition, the employer is obliged to return the medical record book to the employee if it was kept at the enterprise during work.
Why is it better to quit peacefully?
If disagreements arise and the parties decide to terminate the employment relationship, it is wise to do so in an amicable manner. The way out of a conflict situation is dismissal by agreement of the parties.
Benefits for the employer:
- The employee will not withdraw his resignation letter (of course, if such a possibility is not specified in the agreement). Such cases are especially beneficial when the company no longer needs the services of the employee;
- There is no need to take into account the opinion of the trade union, as in the case of dismissal under an article; and in the event of an inspection by the labor inspectorate, the employer will have confirmation of the reciprocity of intentions;
- Dismissal by agreement of the parties does not provide for payments in accordance with the law. An employer pays severance pay to an employee solely on his own initiative.
Notice! Benefits for the employee:
- When drawing up an agreement, the employee can negotiate the amount of compensation that is not provided for voluntary dismissal;
- An employee can leave the workplace one day, without working for two weeks. This is especially true when you urgently need to start a new job;
- After dismissal, by agreement of the parties, the employee can register with the employment service and receive compensation for some time until he finds a new job;
- The employee does not enter into conflict with his superiors, leaving the opportunity to receive a good recommendation for a new job. Thus, the employee’s reputation will not be damaged, even if he has committed a disciplinary offense.
Dismissal at one's own request and by agreement of the parties - what is the difference?
One of the main differences: when dismissed by agreement of the parties, the employee cannot cancel it unilaterally. This compares favorably with voluntary dismissal, when the employee is given two weeks to work off. During this time, he has the right (Part 4 of Article 80 of the Labor Code of the Russian Federation) to change his mind, cancel the application and remain working in the organization.
When an employee decides to leave of his own free will, he becomes the initiator of dismissal, and the employer agrees with him. When dismissal by agreement of the parties, both parties participate and agree among themselves when and under what conditions they terminate the employment contract. This is convenient if you do not have the time and money for a complex staff reduction procedure, and the employee is ready to quit in exchange for compensation. Compensation may vary:
- monetary - the employee receives several salaries;
- material - an employee can pick up a computer, office equipment, household appliances, etc.;
- housing - an employee can live in a departmental apartment for some time after dismissal and leave the child in a departmental kindergarten.
Proper registration of dismissal by agreement of the parties can cause difficulties for an employer who does not have special knowledge. If you are not ready to understand the intricacies of document preparation, we recommend entrusting the issue to the specialists of the Glavbukh Assistant service. They will take on accounting work and tasks related to personnel document flow.
The initiator of termination of an employment contract by agreement of the parties can be either the employer or the employee. Here are some examples of what such a dismissal might look like.
Why such a dismissal may not be interesting
Dismissal by agreement has a number of disadvantages for both parties:
- An employee cannot withdraw his resignation if circumstances change;
- The employer has the right to terminate the employment contract while a subordinate is on sick leave.
It is worth noting that there may be cases when an employee insists on dismissal by agreement of the parties, and the employer is not ready to meet halfway, intending to dismiss the employee under the article.
FAQ
Question 1. The employee submitted a letter of resignation by agreement of the parties, indicating May 18 as the last day of work. However, on May 16, the employee opened a sick leave. Does the employer have the right to fire him during illness?
Answer. In this case, labor relations are regulated by clause 1, part 77 of the Labor Code. If the employee is on sick leave on the date of termination of the contract not at the initiative of the employer, the latter is obliged to pay the employee and terminate the employment relationship. Otherwise, the agreement to terminate the employment relationship is considered invalid.
Question 2. If, after signing an agreement, an employee violates the internal regulations of the enterprise or changes his decision and writes a letter of resignation of his own free will, what can be considered grounds for terminating the employment relationship?
Answer. If, before the date of dismissal, the employer manages to properly record the fact of violation of labor discipline, then he has the right to dismiss the employee under the article.
In the case of a statement on your own, if the date in the agreement follows the date in the statement on your own, the employment contract may be terminated upon expiration of the notice period. Otherwise, the employee must be dismissed by agreement of the parties.
Watch the video. Compensation upon dismissal by agreement of the parties:
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Benefits of the additional agreement for both parties
The execution of such a document is beneficial for both parties. First of all, it is necessary to note the fact that drawing up an additional agreement on the termination of the contract by consent of the parties will help the manager to say goodbye to a certain employee of the organization painlessly, and even categories of persons protected by labor legislation can resign. Also, after drawing up this kind of agreement, the employee does not have the opportunity to terminate it without receiving notification of the manager’s consent, so the order will continue to be in effect.
What then are the benefits of the agreement for the employee? The fact is that the latter can demand the largest possible amount of severance pay if the company needs to urgently terminate cooperation. Of course, it is much more profitable for a manager to pay a dismissed subordinate than to terminate cooperation under another article of the Labor Code of the Russian Federation without payments (the employee will have to be notified several months in advance, and the employment relationship will have to be terminated through the court).
It is also beneficial for both parties that the termination date of a fixed-term or open-ended contract is set optionally, taking into account the interests of the manager and the person being dismissed. An additional agreement can be drawn up even two months before notifying the employee of the cancellation of the employment contract.