Termination by mutual consent

Termination by mutual consent

Occasionally, both a team member and council recognise that continuing the employment relationship is unrealistic or untenable and mutually agree to terminate the employment relationship. Often this follows a conversation about performance or behaviour in which it was agreed the prospects of a successful future working relationship are poor. These ‘agreements’ are risky because the team member might subsequently argue they were pressured to resign (constructive dismissal). Don’t initiate a discussion about termination by agreement without prior consultation with Organisational Development and Capability.

Where a team member initiates the discussion (maybe by offering to resign) be careful to ensure that it is not a heat of the moment decision they quickly come to regret and try to reverse. Suggest a cooling off period of a few days to test whether the team member’s interest in termination by agreement is genuine and stable.

Where you want to initiate the discussion – check with Organisational Development and Capability before proceeding. These arrangements carry significant risk for us that the team member later claims they were forced to leave i.e. constructively dismissed. It is important that any agreement is documented and includes an acknowledgement that the team member has no future claims on us over any aspect of their employment. Organisational Development and Capability will assist.