CMScoop - Mutually agreed termination
The bill has been voted on
Mutually agreed termination of employment contracts under Monegasque law has been voted on
The transitional provisions provide for the law to enter into force three months after its publication in the Journal de Monaco.
In the meantime, the Government will need to issue ministerial orders setting out the practical arrangements for:
- drawing up the termination agreement; and
- obtaining the Labour Inspectorate's approval of the agreement.
In the coming months, the Government is also expected to introduce an online service enabling electronic communication with the Labour Inspectorate.
This new mode of termination has been long awaited by economic stakeholders and will therefore arrive very shortly. Close attention will need to be paid to its specific features.
The stringent formalism of this mutually agreed termination contrasts with Monaco's characteristically liberal approach to employment law.
The three-month period prior to its implementation should be used to familiarise oneself with how the mechanism operates, to ensure the validity of future agreements.
