Mutual Termination of an Employment Agreement
In Thailand, the main ways an employment agreement are terminated are through employee resignation or the employer terminating the employee either with or without cause. However, another way in which an employee-employer relationship can be terminated is through a mutual separation agreement whereby both parties (employer and employee) mutually agree to terminate the legal employee-employer relationship. In this article, we shall discuss several key issues relating to this type of contract as well as what topics should be covered in such agreements. What is the key benefit to employers if they mutually terminate the employee relationship with their employee? The key advantage to mutual termination is that it can help to prevent an employee claiming unfair termination compensation from their employer after termination takes effect. However, it is worth noting that even after an employee signs such an agreement which […]