Monaco introduces mutually agreed termination in latest employment law reform

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The Prince’s Government welcomes the National Council’s adoption of Bill No. 1,108, which formally introduces mutually agreed termination into Monaco’s employment legislation. The Bill is the product of close cooperation between the institutions concerned, and amends certain provisions of Law No. 729 of 16 March 1962 on employment contracts, along with Ordinance-Law No. 677 of 2 December 1959 on working time.

Mutually agreed termination is the flagship measure of the reform, and gives the Principality a fair and clear new mechanism for ending contracts that both employers and workers had been calling for.

The new rules provide an alternative to existing severance arrangements, designed to reduce the risk of disputes whilst still protecting employee rights.

The reform also updates the rules governing trial periods and notice periods, whilst there are fresh provisions for part-time contracts, aiming to simplify the law and give workers more security.

The changes mark an important milestone in the gradual modernisation of Monegasque employment law.