Difference between resignation and termination by mutual agreement

The most common options for terminating employment relationships in Ukraine are resignation (voluntary dismissal) or termination by mutual agreement. The choice of basis determines the timing of dismissal, whether the date must be agreed with management and the possibility of withdrawing the notice.

Procedure for resignation

When resigning, an employee must notify the employer in writing of their intention to leave two weeks in advance. A resignation letter is a written notice from the employee; it should be submitted to the employer or the personnel department (the unit that processes personnel records).

After the notice period expires the employer formalises the dismissal and the employee receives the required documents and the final settlement. Before the notice period expires, the resignation can generally be withdrawn and the employee may remain in their job.

Notice period: two weeks.

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Procedure for termination by mutual agreement

Under a termination by mutual agreement the employee and employer agree both on the fact of dismissal and the date the employment ends. There is no mandatory two‑week notice period — the parties can agree that the dismissal takes effect on the day the agreement is reached or on any other date.

Once an agreement has been reached the employee cannot unilaterally cancel it: ending the agreement usually requires the consent of both parties. This option suits those who want to agree a specific termination date, in particular to stop working earlier.

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Documents and final settlement on the day of dismissal

Regardless of the reason, on the day of dismissal the employer must formalise the termination of employment and carry out the full financial settlement with the employee. The employee receives the necessary documents and the final payment on the day employment ends.

The procedure for receiving documents and the settlement takes place on the day of dismissal in accordance with labour law.

Daria Liubatska

Daria Liubatska

Journalist, personal finance

Journalist at Concord Fintech. She covers personal finance: deposits, insurance, pensions, taxes, benefits and subsidies, explaining how new rules and government decisions affect household budgets. She works with official notices and primary sources.

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