Mutual Termination of Employment Contract

Mutual termination of an employment contract – example is a ready-made template for situations in which the employee and the employer agree to end the employment relationship. A mutual termination agreement is a voluntary act of both parties which settles all the conditions of termination, from the date to the financial obligations, severance pay and the handover of work.

Unlike a unilateral termination, a mutual termination agreement requires neither a statement of reasons nor observance of the statutory notice period – everything is settled by agreement. That is precisely why it is important for the agreement to be drawn up in detail and to cover all the essential elements, so that later misunderstandings are avoided.

Key features

A mutual agreement: a mutual termination of the employment contract is the result of the will of both parties. There is no unilateral pressure – both the employee and the employer freely agree to end the employment relationship and settle the conditions.

No statutory notice period: with a mutual termination there is no statutory obligation to observe a notice period – the parties agree the termination date themselves. It can be immediate, in a week or in several months.

Financial obligations covered: tick boxes for wages, compensation for annual leave, severance pay and other payments, all clearly defined in a single document.

Professional structure: 6 articles covering all the essential elements – the termination date, the handover, payments, the certificate of employment and mutual claims.

Digital availability: the template is available immediately after purchase in Word format (.docx) – a mutual termination agreement example you can adapt straight away.

What does the document include

• Employer and employee details: full details of both contracting parties – company name, OIB (personal identification number), registered office, representative, and the employee’s name, OIB and address.
• Article 1 – Termination date: the exact date on which the employment contract ends by agreement.
• Article 2 – Handover of work: the obligation to hand over work, documentation, work equipment and other property of the employer in an orderly manner.
• Article 3 – Financial obligations: payment of wages up to the termination date, compensation for unused annual leave, severance pay (if agreed) and other payments.
• Article 4 – Certificate of employment: the obligation to issue a certificate of the type and duration of work in line with Article 130 of the Labour Act.
• Article 5 – Claims: a statement that the parties have no mutual claims other than those set out in the agreement.
• Article 6 – Counterparts: two identical counterparts, one for each party.

Who is this template for

• Employees and employers on good terms: when both parties want an orderly and professional end to the employment relationship without a formal termination procedure.
• Situations with agreed severance pay: a mutual termination agreement clearly governs the financial conditions of termination, including any severance pay.
• Employers who want to avoid a termination procedure: a mutual termination is simpler, faster and less formal than a unilateral termination with a notice period.
• Employees who want to leave sooner: if you do not want to wait out the notice period, a mutual termination agreement allows you to agree an earlier termination date.

Purchase and delivery of the contract

After payment by card, the template is sent to your e-mail address immediately, and the download link is in the message titled “Završili smo obradu vaše narudžbe” (We have finished processing your order). With payment against an offer (bank transfer), the document becomes available within 4 hours of the payment being recorded, and the process can be sped up by sending proof of payment.

The document can be downloaded up to 3 times within 30 days of purchase. After purchase, save the document on your computer or another storage device.

Document format

The template is delivered in Word (DOCX) format. You can easily edit the document, enter your own details and adapt it to your specific needs before printing or notarisation. The template is aligned with Croatian legislation and is updated regularly.

This template does not replace legal advice. For final legal validity we recommend that the completed document is reviewed by a lawyer or a notary public before signing.