Mutually Agreed Termination · Employee
How much will you receive?
Estimate your severance pay in just 1 minute, check your eligibility for unemployment benefits, and find out your start date. Free, no registration required.
Are you considering a mutual termination agreement, or has your employer offered you one? This free calculator helps you estimatethe minimum severance pay you should receive, confirm that you ’ll retain your eligibility for unemployment benefits (ARE), and determine the date you’ll be available for new opportunities. It also provides guidance to help you negotiate effectively and prepare for the next steps in your career.
Mutually Agreed Termination: Your Questions
Key factors for making an informed decision: severance pay, unemployment benefits, and timeframes.
How much will I receive under a mutual termination agreement?
You are entitled to at least the statutory severance pay: one-quarter of a month’s salary per year of service for up to 10 years, then one-third of a month’s salary per year thereafter. Incomplete years are calculated on a pro-rata basis. This is the minimum; you can negotiate a higher amount, and if your collective bargaining agreement is more generous, its terms apply.
Will I be eligible for unemployment benefits after a mutual termination agreement?
Yes. Unlike resignation, a court-approved mutual termination agreement entitles you to unemployment benefits (ARE), just as a layoff would, provided you meet the eligibility requirements. This is one of its major advantages. You can estimate your benefits using our unemployment benefits calculator.
Can I negotiate the amount?
Yes. The amount shown is the legal minimum. A mutual termination agreement is based on a mutual agreement: you can request a higher severance payment and negotiate your departure date. Preparing well for this discussion can make a real difference in what you receive.
Can I change my mind after I've signed?
Yes. After signing, you have 15 calendar days to withdraw from the agreement without having to provide a reason. Only after this period has expired is the application for approval sent to the authorities.
When will I actually leave and get paid?
Your contract ends no earlier than the day after it is officially approved—that is, after the 15-day withdrawal period and approximately 15 business days of processing. On that date, you will receive your severance pay and final settlement, and your eligibility for unemployment benefits may begin.
Is this a good idea for me?
It all depends on your plans. A mutual termination agreement is beneficial if you want to leave your job while retaining your severance pay and eligibility for unemployment benefits. Before signing, it’s best to clarify your next steps (career transition, training, new job): a skills assessment can help you leave with a clear direction.
Should I bring someone with me?
At least one meeting is required, and you have the right to have someone represent you. In special circumstances (sick leave, maternity leave, or serving as a staff representative) or if you are unsure, professional guidance can help you make a decision and ensure a smooth transition as you leave.