Termination by Mutual Agreement in Belarus

In the realm of labor relations, termination of employment is often perceived as a painful or conflict-laden process. However, there is a mechanism that allows both the employee and the employer to part ways without disputes, mutual claims, or formal complications — termination by mutual agreement. This method of ending an employment contract in Belarus is becoming increasingly common, especially in cases where both parties seek to maintain professional relations and avoid lengthy proceedings.

Termination by mutual agreement is considered one of the most flexible and amicable options: it does not require justification, offers room for negotiating terms (such as the date of termination and any payments), and can be carried out quickly. At the same time, both the employee and the employer need to be aware of the nuances involved, the documents that must be prepared, and the potential risks of overlooking important details.

This article will explain how to properly execute a mutual agreement termination, what steps need to be taken, what should be included in the written agreement, and how both parties can protect their interests.

What Is Termination by Mutual Agreement?

Termination by mutual agreement is one of the most flexible ways to end an employment contract. In this scenario, the employer and employee mutually decide to terminate the employment relationship. This option is considered neutral and does not imply any negative assessment of either party’s actions.

Unlike dismissal initiated by the employee or the employer, mutual agreement is based on the voluntary consent of both parties. There is no requirement to specify the reasons for termination, observe notice periods, or follow preliminary procedures. The parties themselves set the termination date, agree on possible severance or compensation, and formalize their agreements in writing.

This approach is particularly useful in situations where:

Both parties aim to preserve a professional relationship.
There is a need to terminate the employment quickly and without conflict.
Additional arrangements need to be documented beyond standard termination procedures.

How Mutual Agreement Differs from Other Types of Termination

Resignation by the Employee: Requires written notice within a prescribed period (usually one month or two weeks). The employer cannot expedite the process without the employee’s consent.
Termination by the Employer: Must be based on specific legal grounds such as staff reduction or disciplinary issues and is often accompanied by legal disputes.
Expiration of a Fixed-Term Contract: Happens automatically but does not allow for negotiation of termination terms.

In contrast, termination by mutual agreement is a controlled process that reduces the risk of disputes. This is especially important in business, where maintaining loyalty and reputation is key.

When Is Termination by Mutual Agreement Appropriate?

While mutual agreement termination is a universal tool, it is particularly useful in situations where it is important to maintain professionalism, minimize formalities, or promptly end an employment relationship. Here are some common scenarios where this approach is most effective:

At the Initiative of Either Party

A mutual agreement can be proposed by either the employee or the employer. For instance, an employee may want to leave sooner than required by law without serving a notice period, while an employer may need to fill the position more quickly. In such cases, both parties can agree on the termination date, compensation (if applicable), and conditions for ending the employment — ensuring flexibility and mutual benefit.

Alternative to Staff Reductions

If the company is planning a reduction in workforce, mutual agreement can serve as a more amicable and manageable alternative. The employer can part ways with employees without lengthy procedures and mandatory notices. Employees are often offered compensation or other benefits, making this option more attractive than formal redundancy.

Project Completion or Temporary Employment

When an employee was hired for a specific project or for a limited time without a fixed-term contract, mutual agreement offers a logical and formal way to conclude the working relationship. This helps avoid misunderstandings, formalize the end of the collaboration, and document the agreed terms.

Workplace Conflict or Changing Conditions

In cases of growing conflict, deteriorating work environment, or changes in working conditions (such as schedule, location, or duties), mutual agreement can provide a balanced solution. This allows both parties to save face, avoid labor disputes, and end the relationship in a civil and respectful manner.

In all of these situations, it is crucial to remember: a mutual agreement is a legal document reflecting the free will of both parties. Therefore, the decision should be made consciously and without pressure. The terms of the agreement should be clearly outlined in writing to avoid misunderstandings and ensure legal protection for both the employee and the employer.

Procedure for Termination by Mutual Agreement

Although termination by mutual agreement is considered the least formal method of ending an employment relationship, it must be properly documented. This is essential to protect the interests of both parties and to prevent potential disputes in the future. The procedure involves several key steps.

Step 1: Negotiations and Reaching an Agreement

The initiative may come from either the employee or the employer. During this stage, the parties discuss:

The proposed termination date
Whether or not the employee will serve a notice period
The amount of any compensation to be paid
Additional terms (e.g., confidentiality obligations, return of company property, etc.)

It is important that the agreement is reached voluntarily and that all conditions are clearly documented.

Step 2: Drafting and Signing a Written Agreement

The next step is to formalize the agreement in writing. Although this is sometimes skipped, it is strongly recommended to prepare a written document. The agreement should include:

The legal ground for termination – mutual agreement
The specific date of termination
Any agreed-upon conditions

Both parties sign the agreement to confirm their mutual consent.

Step 3: Issuing a Termination Order

Based on the signed agreement, the employer issues a formal termination order. The order should be prepared using the standard format and must reference the legal basis for termination — mutual agreement — along with the relevant legal provision.

The employee must be familiarized with the order and sign to confirm receipt.

Step 4: Entry in the Employment Record Book

On the day of termination, the employee is issued their employment record book with an entry indicating termination by mutual agreement. The employee also receives all due documentation and the final financial settlement.

Termination Date and Notification Period

The law does not require a specific notice period for termination by mutual agreement. This means that the parties are free to set any convenient termination date — immediate or in the future. It is advisable to record this date in the written agreement to ensure clarity and flexibility, allowing the process to be adapted to the specific situation.

What Terms Can Be Included in the Agreement?

One of the key advantages of termination by mutual agreement is the ability to flexibly define the terms of termination. The agreement is not limited to the termination date — the parties may include additional provisions to ensure transparency and predictability.

Compensation and Severance Pay

While severance pay is not mandatory in the case of mutual agreement, the parties may agree on its amount and payment terms. This may include:

A fixed amount (e.g., equal to one or several monthly salaries)
Compensation for unused vacation time (if not paid separately)
A performance-based bonus or incentive
Other payments at the employer’s discretion

It is advisable to specify these arrangements in the agreement by stating the exact amounts, payment deadlines, and methods of payment.

Notice Period or Its Absence

As a general rule, no notice period is required when employment is terminated by mutual agreement. However, if the parties find it necessary, they may include the following provisions:

The employee continues to perform job duties until a specific date.
Completion of certain tasks before handing over responsibilities.
Substitution of the notice period with another arrangement (e.g., paid leave followed by dismissal).

The key point is to clearly outline these terms in the agreement to avoid misinterpretation.

Additional Agreements

The termination agreement may also include other provisions that reflect the interests of both parties:

Non-disclosure obligations (related to trade secrets or confidential information).
Return of company property provided to the employee (equipment, access passes, uniforms, documents).
Handover of ongoing work, completion of projects, or consulting support during a transitional period.
Waiver of mutual claims — often included to protect both parties from future disputes.

Such provisions are particularly relevant when terminating key personnel, managers, or employees with access to sensitive information or client databases.

Pros and Cons of Termination by Mutual Agreement

Termination by mutual agreement is a voluntary process chosen by both parties. To make an informed decision, it’s important to understand the advantages and disadvantages it brings for both the employee and the employer.

For the Employee

Advantages:

Flexible terms of dismissal. The employee may negotiate a convenient end date and avoid mandatory notice.
Possibility of compensation. If agreed, the contract may include severance pay or a bonus.
Neutral record in the employment history. The reason for termination is not negatively framed, unlike dismissal for disciplinary reasons.
Opportunity to maintain professional relations. Especially important when leaving the company for personal reasons without conflict.

Disadvantages:

No mandatory compensation. Unlike redundancy, the employer is not obliged to provide severance pay unless it’s specified in the agreement.
No unilateral withdrawal. Once signed, the agreement cannot be revoked unilaterally.
Limited guarantees. The employee forfeits certain benefits that might apply under other types of dismissal (e.g., layoff).

For the Employer

Advantages:

Quick termination process. No need to observe notice periods as in dismissal at the employee’s initiative.
Flexible approach. The parties may agree on asset return, handover conditions, or confidentiality terms.
Lower risk of labor disputes. Since the termination is based on mutual consent, the risk of legal challenge is minimal.
Smooth offboarding. Helps maintain employee loyalty and supports the company’s reputation as a responsible employer.

Disadvantages:

Potential additional costs. Employees may only agree to terminate in exchange for compensation.
Ambiguity within the team. Offering preferential terms to one employee may lead others to expect the same.
Limited applicability. In conflict situations or when the employee is unwilling to compromise, mutual agreement may not be feasible.

In conclusion, termination by mutual agreement is a useful tool in cases where there is trust and a shared intent to end the employment relationship in a civil manner. When handled properly, it helps protect the interests of both parties and prevents unnecessary tension.

Risks and Common Mistakes

Despite the apparent simplicity of termination by mutual agreement, in practice it often leads to labor disputes and misunderstandings. To avoid negative consequences, it’s important to be aware of common mistakes and potential risks for both employees and employers.

Verbal Agreements Without Written Confirmation
One of the most frequent mistakes is relying on verbal promises. For example, an employer may promise to pay compensation, but the signed agreement contains no mention of it. In case of a dispute, only what is documented in writing will be considered. Therefore, all terms — the termination date, payment amounts, waiver of claims — must be clearly documented.

Pressure From One of the Parties
A mutual agreement implies voluntary consent from both sides. However, in practice, one party (often the employer) may pressure the other into signing by threatening dismissal “for cause” or by creating uncomfortable working conditions. Such behavior may be considered abuse of rights, and if the employee files a complaint, the agreement could be declared invalid in court.

To mitigate such risks:

The employer should document that the employee signed the agreement voluntarily.
The employee should take time to consider the decision and seek legal advice if necessary.

Incorrect Documentation
Mistakes in wording, inconsistent dates, missing orders, or incorrect entries in the employment record book can lead to legal complications. For example:

An incorrect legal basis for termination.
Discrepancies between the termination date stated in the agreement and the actual last working day.
Lack of explicit consent from one of the parties.

Such issues may result in the termination being deemed unlawful, the employee being reinstated, or financial claims being filed.

To ensure that termination by mutual agreement proceeds smoothly and in full compliance with the law, both parties should act consciously, without pressure, and with attention to detail.

Conclusion

Termination by mutual agreement is a convenient and flexible tool for ending employment that allows both the employee and employer to agree on mutually beneficial terms. This approach is especially relevant in situations where maintaining loyalty, avoiding conflict, or setting individual exit conditions is important.

However, despite its simple wording, the procedure requires careful attention: documents must be correctly drafted, key conditions specified, and the decision made voluntarily and with full understanding.

If you are considering termination by mutual agreement — either as an employer or as an employee — our experts are here to help. Recruitment.by specialists will guide you through every step, prepare the necessary documentation, and ensure legal compliance throughout the process.
Contact us — we’ll make the transition clear, secure, and comfortable for everyone involved.