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ARTICLE · 08 SEPTEMBER 2025

The Mutually Agreeable Departure

While there are several ways to go about concluding an employment relationship, one method that is often overlooked is an agreement to mutually conclude employment.

CanadaEmployment and HR

How to end the employment relationship on amicable terms

While there are several ways to go about concluding an employment relationship, one method that is often overlooked is an agreement to mutually conclude employment. Whether the reason for termination is performance based, restructuring or overall fit in the workplace, a mutual agreement to end employment can provide a dignified exit for the employee, while limiting exposure and costs to the employer that might otherwise arise from termination.

More specifically, a mutual agreement allows the employee to participate in crafting the terms of their departure without the animosity and hurt feelings that can result from a unilateral termination. For employers, a mutual agreement allows for necessary changes to the workforce while avoiding the cost of litigation arising from wrongful dismissal allegations.

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