Mutual Agreement To Rescind

Issues relating to the importance of the worker`s intention in the reciprocal resignation agreement, i.e. how the employment contract is concluded and terminated by mutual resignation agreement, will all be resolved in the 2017 arbitration award rendered by the Ninth and Twentieth Civil Chambers of the Court of Appeal. The reciprocal resignation agreement is valid as soon as the worker renounces his labour rights and receives compensation from the employer. Each event should be interpreted on a case-by-case basis by the courts. Counterparty An agreement to terminate a previous contract must be based on sufficient consideration, an incentive. If a contract remains performed on both sides, a termination agreement of one party is sufficient consideration to terminate the agreement of the other and vice versa.