How to cancel or terminate an employment contract?

Published on
November 24, 2023
How to cancel or terminate an employment contract?

The signing of an employment contract seals the professional relationship between an employee and an employer. Once the agreement is formalized, it is entirely possible to cancel or terminate a signed employment contract if certain formalities are respected. Frequent modifications and cancellations can complicate personnel management, which is why many organizations use digital contract signing software to track remote recruitments and simplify administrative procedures.

What is an employment contract?

An employment contract is a legal agreement between an employer and an employee, available in paper or digital form. It defines the terms and conditions of their professional relationship, establishing the rights, responsibilities, and obligations of both parties for the duration of employment. To be valid, the contract must comply with labor laws and be signed by both parties.

Importance of signing the employment contract

Who are the signatories?

The contract must be signed by the employer, who represents the company, and the employee, who agrees to the terms. Their signatures confirm mutual consent and legally bind both parties.

Why must the contract be signed?

A valid employment contract relies on signatures to confirm that both parties accept the established working conditions. This written commitment provides a solid legal basis for resolving any future disputes.

How can the contract be signed?

There are two methods for signing:

In person

The employee visits the company’s premises, reviews the contract, and signs the paper document in the presence of the employer.

Remotely

Digital tools enable online signatures, making it easier to recruit and manage contracts remotely while ensuring legal compliance.

Modifying or terminating a signed employment contract

It is possible to modify a signed contract by adding new clauses or adjusting salary, working hours, or responsibilities. Such changes must be mutually agreed upon and documented in writing to avoid future disputes. In some cases, the employer may modify the contract without the employee’s consent if justified by economic or logistical constraints.

Termination is also possible—regardless of whether the contract is permanent, fixed-term, or temporary—but only under certain conditions. Many contracts include specific termination clauses that define the notice period, valid reasons for cancellation, and other obligations. An employer may also initiate termination through a dismissal process, which requires a valid justification and strict adherence to legal procedures to prevent abuse.

Procedure for terminating a signed contract

Before terminating a contract, review the cancellation clauses within the document. It is necessary to respect all deadlines, notice periods, and other agreed obligations. Generally, a formal termination letter must be drafted, specifying the effective date, reasons for cancellation, and the signature of the requesting party.

Conventional termination and resignation

In cases of mutual termination or resignation, the employee is expected to continue working during the notice period under the same conditions. At the end of this period, they return any company equipment and leave the position in accordance with legal requirements.

Termination initiated by the employer

If the employer terminates the contract through dismissal, they must follow a regulated procedure by sending a formal, regulated letter to the employee.

Conclusion

Canceling or terminating a signed employment contract is possible under specific conditions. Whether initiated by the employee or the employer, any changes must adhere to the agreed clauses, including respecting deadlines and notice periods, and be formalized in writing to ensure legal protection for both parties.