Termination agreement

Termination agreement

» Notion

Termination of the contract through written agreement concluded between the employer entity and the public employee

» Requirements

Proof of obtaining efficiency gains and expenditure reduction (namely for being unnecessary the public employee’s substitution)

Proof of budget availability for, in the termination year, bear the indemnity due to the public employee

» Procedures

Previous authorization of the members of the Government responsible for finance and public administration and the one who performs guidance, superintendence or supervision powers over the service to which the public employee belongs

The previous authorization of the members of the Government shall be dispensed with if public employees integrated in the assistant technician and assistant operational careers have been in question (without prejudice to the compliance with requirements)

Before the granting of the authorization, the member of the Government in charge of finance and public administration may request to the mobility managing entity the assessment of the possibility to assign the public employee to another work post of other compatible service with his/her category, experience and qualification

» Labour effects

The conclusion of the agreement generates for the public employee the incapacity to form any employment relationship, on a subordinate or independent basis, with any State bodies or other public legal entity, during a number of months equal to the quadruple of months of indemnity received

» Financial effects

The global amount of the indemnity shall correspond, at most, to 20 days of basic salary for each completed year of seniority

Notes

- For calculation purposes, the daily compensation is equal to the thirtieth part of the monthly basic salary

- The fraction of the year shall be taken into account for the financial indemnity proportionally

- The indemnity shall not be higher than the amount of the basic salaries that the public employee would receive until the retirement legal age nor may be higher than 100 times the guaranteed monthly minimum compensation

- The actual demonstration of the gains existence in the actual expense reduction and the authorization of the member of the Government responsible for the finance area in cases in which the public employee may accede to the early retirement mechanism (convergent system), to the flexibility regime or early age for old age retirement (social security general system) shall be always compulsory