An employment relationship can be terminated in several ways: the two most common are unilateral notice of termination and mutual agreement to terminate the employment contract. At first glance they lead to the same outcome, but in practice they work very differently. The main difference lies in who decides on the termination and how long the entire process takes.
Who decides on the termination of an employment relationship
A notice of termination is a unilateral legal act. It may be issued either by the employee, without the need to state a reason, or by the employer, but only for reasons specified by law. The other party does not need to agree to the notice; it remains valid even if they disagree. It is sufficient that the notice is properly drawn up and delivered.
A mutual termination agreement works differently: it requires the consent of both parties. Without mutual agreement, no such agreement is formed, if the parties cannot reach an understanding, notice remains the only option. Either party may propose a termination agreement, but until the other party signs it, no termination of the employment relationship occurs and the employment continues unchanged.
When does the employment relationship end
In the case of a notice of termination, the statutory notice period applies: at least two months; for an employer's disciplinary dismissal, at least one month. Additionally, the period is now calculated from the date the notice is received, not from the beginning of the following month (see the article on vypoved-prace-vzor.cz for details). calculation of the notice period from 2025).
In a mutual agreement, both parties determine the end date themselves. It could be the same day, a week later, or with a longer notice period if that suits both sides. No statutory minimum notice period applies here. This flexibility is also the main practical difference: whereas in a termination notice the end date is fixed by calculation, in a mutual agreement it is purely a matter of arrangement.
Unemployment benefit: general information
The manner in which an employment relationship ends can affect how unemployment benefits are subsequently processed through the Labour Office. Specific conditions and any waiting periods change over time, so it is always best to verify current rules directly with the Labour Office or on the MPSV portal. This article deliberately does not state specific figures or percentages, as they are not constant and would quickly become outdated.
When an agreement is appropriate
A mutual agreement makes sense when both parties want a quick and amicable end without unnecessary disputes, for instance, if they agree that further cooperation is no longer viable, or if they wish to individually negotiate additional conditions for the departure. It is also suitable where neither party wants to wait for the notice period to expire, or where the employer needs to terminate the employment quickly but lacks a statutory ground for dismissal, yet the employee is willing to reach an agreement.
When a notice of termination is appropriate
A notice of termination is appropriate when an employee wishes to leave regardless of the employer's consent. They may do so at any time and without cause, provided the written form and delivery requirements are met. On the employer's side, a notice of termination is the only option where there is a specific statutory ground for termination, but the employee does not agree to a mutual agreement or refuses to negotiate it. In such cases, the employer has no choice but to formally draft and serve a notice of termination stating the reason.
What both options have in common
Whichever route you choose, the same basic rule applies to both: it must be a written document with clearly defined content, not a verbal agreement or an informal message. In the case of an agreement, both parties sign the document together, whereas for a notice of termination, only the party issuing it needs to sign; the other party merely acknowledges receipt.
Practical difference in brief
- Decision-making: Notice of termination: one party; mutual agreement: both parties jointly.
- Deadline: termination notice: statutory notice period; mutual agreement: any duration, as agreed.
- Form: Both must be in writing and clearly formulated.
- Risk of dispute: In the case of a notice of termination, there is a risk of dispute over the reason or delivery; with a mutual agreement, such risks are practically non-existent if both parties have signed it.
Related articles: notice period from 2025, how to resign as an employee a What must not be missing from a notice of termination.