Dismissal by agreement of the parties: what does it mean, how to write a statement, sample, the pros and cons of such dismissal and compensation payments

The dismissal of any employee of the enterprise can be carried out in various ways. To do this, the initiator may be the employer or direct employee of the company. It is considered interesting enough to draw up an agreement. What does dismissal mean by agreement of the parties? This procedure assumes that the participants in the employment relationship reach certain agreements prescribed in the agreement. On the basis of it, the employment contract is terminated.

When is this method of dismissal used?

According to the Labor Code, dismissal by agreement of the parties is considered a fairly simple and relevant process. To this end, certain agreements are reached between the two parties; therefore, there are no disputes or disagreements when the contract is terminated.

Before drafting the document, negotiations are necessarily conducted during which conflicts are resolved and differences are resolved. Such a document is legally binding only with the voluntary consent to its signing by both participants. The rules for dismissing an employee by agreement of the parties include:

  • the procedure can be started by an employee of the enterprise wishing to leave the place of work, as well as by the employer;
  • if the employee himself wants to leave the company, then he sends a statement to the personnel service, indicating that he wants to draw up an agreement of the parties;
  • if the initiator is the head of the company, then he provides the employee with a letter drawn up on the letterhead.

Based on the letter or application, an agreement of the parties is formed. It indicates all the nuances of the termination of employment. Any disagreement between the employee and the head of the enterprise is not allowed. If one of the parties refuses to sign the document, then the employee quits at his own request or under article TC.

Most often, the initiator of this process is the employer who wants to peacefully dismiss the specialist. Due to the fact that a significant severance pay is assigned upon dismissal by agreement of the parties, employees often meet them, therefore they sign this document.

severance pay upon dismissal by agreement of the parties

Employee Benefits

Before using this method of termination of employment, you should understand what are the pros and cons of dismissal by agreement of the parties. The advantages of compiling such a document for an employee include:

  • upon reaching an agreement, the specialist may not work out the set period of time in the company;
  • no need to explain why the employee wants to terminate the employment relationship;
  • it is allowed to request a significant severance pay and various compensations from the employer;
  • most often the director of the enterprise makes interesting recommendations for such an employee;
  • Due to this method, it is possible not to spoil the reputation of the specialist if he was guilty during his labor activity, so there will be no unpleasant notes in the workbook;
  • Due to significant compensation, you can count on a substantial unemployment benefit after the employee is registered with the employment center.

Therefore, citizens should have a good understanding of what dismissal means by agreement of the parties. Often for them the formation of this document is the most rational and attractive way to terminate labor relations.

dismissal by agreement of the parties pros and cons

Disadvantages for the employee

Drawing up an agreement of the parties has for hired specialists not only positive parameters, but also some negative aspects. These include:

  • if this document is drawn up and signed, then the employee will not be able to change his mind and revoke the agreement, unlike the withdrawal of the letter of resignation, therefore, to stop the process, you will have to get permission from the enterprise management;
  • after signing the agreement, it will not be possible to make any adjustments to it;
  • reached agreements cannot be changed even through a court of law;
  • the opinion of the union is not taken into account.

Therefore, it is important to responsibly approach the process of signing such an agreement. The minuses of dismissal by agreement of the parties are considered not too significant, therefore, if you initially carefully read the paragraphs of the document, then no unpredictable negative consequences will arise.

Is an agreement beneficial for employers?

Dismissal by agreement of the parties has certain advantages for the leaders of different companies. But at the same time, the directors have to make certain concessions. Costs increase due to severance pay upon dismissal by agreement of the parties.

If you want to terminate the contract with an undisciplined employee, then drawing up an agreement is considered the most preferable option. In this case, you can terminate the relationship without drawing up numerous documents and execution of disciplinary sanctions. A citizen will not be able to challenge the agreement and return to the company.

It is possible to draw up such an agreement even in a situation if the employee is on vacation or on sick leave. Another advantage is that the employee may agree to train a new specialist applying for his position before being fired. This will prevent a temporary suspension of the company.

sample record of dismissal by agreement of the parties

Is it possible to dismiss without written consent?

Employers should be aware of what dismissal means by agreement of the parties, so that when using this method of termination of an employment contract with an employee, they do not violate different provisions of the Labor Code. This document is compiled and signed exclusively voluntarily, therefore, an employee must agree on this process.

Consent to such dismissal may be in writing, but an oral form is also allowed. In the second case, it is recommended that agreements be reached with witnesses in order to avoid possible disputes in the future.

Additionally, the employee draws up a special statement. An example of a letter of resignation by agreement of the parties can be studied below.

dismissal by agreement of the parties

How is the process formed?

What does dismissal mean by agreement of the parties? This procedure involves the termination of employment by drawing up a special contract, which indicates all the rules for the termination of cooperation.

The procedure for dismissing an employee in this way is divided into successive stages.

Drawing up an agreement with an employee

If the initiator is an employee, then he draws up a letter of resignation by agreement of the parties. A sample of this document includes the name of the company, full name the employee, as well as the reasons for terminating the employment relationship.

Based on such a statement, an agreement is drawn up by the employer. In the TC there are no exact requirements for the rules for the design of this document, but it is advisable to write it in writing.

Be sure to include information in this document:

  • the last day a citizen works in a company;
  • prescribes the opportunity to go on vacation before leaving;
  • a cash payment is presented, represented by compensation for termination of employment;
  • the order on the basis of which the new employee will be trained is indicated.

Other information may be prescribed if necessary. All of them are discussed by the two parties to the transaction in advance, as there should be no disagreement between the employee and the employer.

After signing this document, it will not be possible to make changes in any way. This is allowed only with the permission of both participants.

maybe dismissal by agreement of the parties

Issuing an order to dismiss an employee

After signing the agreement, the employer issues an order in the form of T-8. It indicates which particular employee leaves the company, what position he occupies, how long he has worked in the organization, and additional information may also be included.

Be sure to indicate in the document that the dismissal is happening by agreement of the parties. Article 77 of the Labor Code indicates that without this, the law will be violated by the employer. Additionally, information is provided that is provided by the details of the agreement drawn up with the employee.

After the order is issued, it is registered in the accounting journal, and it is signed by the head of the enterprise. Only after this is an order presented for familiarization with the dismissed employee. The specially designated column shall contain the signature of the citizen, as well as the date of study of the document.

If for any reason the employee cannot study the order or does not want to sign it, then an appropriate act is drawn up. For this, witnesses are involved who confirm the existence of an order.

what does dismissal mean by agreement of the parties

Entering data into a personal card

Each employee of the enterprise has a personal card. She is formed at the moment when he gets a job. For this, a special form T-2 is used. In the section intended for the reason for termination of relations, the preparation of the agreement of the parties is indicated.

The document after compilation is checked by the employee of the personnel department. Then it is transferred to the resigning citizen, who must verify the correctness of the entered data, after which he signs in the document.

Entering data in the work book

A sample record of dismissal by agreement of the parties in the workbook can be considered below. For this, a link to Art. 77 shopping mall. In addition, the details of the order on the basis of which the employment relationship is terminated are indicated.

The entry in the work book is certified by the personnel officer and the employer. It is not necessary to put a print on this document. An employee gets acquainted with the existing record, after which he confirms the information with his signature.

The employee of the personnel department, responsible for filling out the work book, has material liability for the information entered. If, for any reason, a mistake is made that makes it impossible for a citizen to find a job, then he will be able to demand compensation from the violator in the amount of the average earnings for the days when he could not get a job because of a mistake.

dismissal by agreement of the parties

Drawing up a receipt-calculation

This document is compiled to determine exactly what amount should be paid to the employee on the last day of his employment. It reflects the following information:

  • amount of compensation for unused vacation;
  • salary for working days;
  • severance pay;
  • various bonuses and allowances to which a citizen is entitled on the basis of an existing employment contract.

A receipt is generated in the form of T-61. It has two sides, the front part being intended for general information about the employee, and the reverse contains the rules for calculating compensation, salaries, and other payments transferred to the dismissed employee.

Settlement with an employee

Dismissal of their own by agreement of the parties allows each person in the preparation of this document to indicate the possibility of receiving different payments from the employer. Therefore, the following types of payments are most often transferred to employees:

  • salary for the last days or months of work;
  • vacation compensation;
  • severance pay;
  • miscellaneous surcharges assigned by agreement or employment contract.

The most important thing for citizens is severance pay upon dismissal by agreement of the parties. If just a person submits a standard application for dismissal, then this payment is not assigned to him.

Often there is no opportunity to pay cash to the employee on time, as he is absent from the workplace. He may be on sick leave or on a business trip. In this case, the funds are stored in the company, therefore they are issued at the moment when the citizen comes to the company for payment. Additionally, funds can be transferred to a bank salary card.

If there are disputes between the two parties as to what amount should be paid to the dismissed employee, then only the amount regarding which there is no disagreement will be issued within the established deadlines. In relation to other funds, negotiations are underway. Often, in a peaceful way, it is not possible to resolve the differences that have arisen, so you have to resort to legal proceedings.

If a citizen plans to take leave before leaving, then compensation for the leave is not assigned to him, therefore only vacation pay is paid.

sample of dismissal by agreement of the parties

Issue of documents to an employee

After the termination of the employment contract, based on the agreement of the parties, it is necessary to transfer the necessary documents to the employee. The main such documents include:

  • employment record book, which correctly indicates the reason for termination of the employment contract;
  • certificate 2-NDFL, including information about what is the size of the citizen's earnings for the last year of work, since it is precisely due to this information that the size of the sick leave at the new place of employment will be calculated;
  • SZV-STAGE report for the year of employment;
  • a certificate containing information on accrued and transferred funds in the form of PF contributions;
  • copies of internal documents related to the work of a citizen, for example, orders of encouragement, gratitude or letters of recommendation, and they are issued at the request of the dismissed person within three days;
  • a certificate of the amount of earnings compiled specifically for the employment service and issued within three days from the date of the request, since it is on the basis of this document that the amount of unemployment benefits is determined during the first months when the specialist cannot find another job.

If, for various reasons, the employer fails to transfer to the citizen, on the basis of the request, any of the above documents, then this becomes the basis for holding him liable. For this, a fine of 50 thousand rubles is paid.

dismissal by agreement of the parties

Pitfalls of the process

Dismissal by agreement of the parties has some pitfalls. These include:

  • if the process is not beneficial for the employee, then you should not sign an agreement, since after that you will not succeed in changing any of its points;
  • if the employer indicates that the employee will be able to receive compensation if he agrees to this method of termination of the employment contract, it is important to make sure that the information on this payment is available in the agreement;
  • all agreements agreed orally must be transferred to paper, otherwise it will not work out to recover any funds after signing the document from the employer.

Therefore, it is important to treat the process of forming an agreement responsibly with each hired specialist.

Conclusion

The agreement of the parties is increasingly used in the termination of relations with employees of organizations. The use of this method has many advantages for employees and employers.

The procedure involves the preparation of an agreement, which sets out the conditions for termination of the employment contract. It is impossible to change the terms of such a document after signing it.


All Articles