# What do you lose if you sign a termination agreement? **Jelena Đivuljskij, lawyer, Novi Sad.** Phone and Viber: +381 65 2935 637, Mon–Fri, 9:00–17:00 CET. [Send an enquiry](https://advokatjelena.rs/en/contact?tema=Termination%20by%20agreement#upit). - Author: [Jelena Đivuljskij](https://advokatjelena.rs/en/about), lawyer - Area: [Employment law](https://advokatjelena.rs/en/employment-law) - Written: 10 November 2026 (2026-11-10) ## Key information - The agreement must be in writing. - Before you sign, the employer must inform you in writing of the consequences for unemployment benefit. - Severance pay is not due by law; it can be written into the agreement. - The employer pays all salary and compensation within 30 days of the end of employment. ## In short With termination by agreement, employment ends on the day you agree, without a notice period and without statutory severance pay, and as a rule you also lose the right to unemployment benefit, so sign the agreement only when you know exactly what you are signing. ## What is termination by agreement? Under Article 177 of the Labour Law (Zakon o radu), employment can end on the basis of a written agreement between the employer and the employee. Neither side has to give a reason. The day employment ends is set in the agreement, and there is no notice period. An agreement is a mutual arrangement, so you can also turn down an offer of one. Refusing an agreement is not a legal ground for dismissal (otkaz). ## What must the employer tell you before you sign? Before you sign, the employer must inform you in writing of the consequences the agreement has for your rights in case of unemployment (Article 177). Read that notice before you sign the agreement, and keep a copy of both documents. Nobody can make you sign the agreement on the same day. If you receive a draft, ask for time to read it at home. ## What do you lose? Unemployment benefit. Under the Law on Employment and Unemployment Insurance (Zakon o zapošljavanju i osiguranju za slučaj nezaposlenosti), an employee whose employment ended by agreement is, as a rule, not entitled to unemployment benefit (novčana naknada za slučaj nezaposlenosti), except in the cases that law provides for. Severance pay. The Labour Law provides for severance pay (otpremnina) on dismissal for redundancy and on retirement, not on termination by agreement. You receive money agreed on leaving only if the amount and the payment deadline are written into the agreement. The chance to challenge a dismissal. When employment ends by agreement, there is no dismissal decision (rešenje o otkazu) to challenge in court. The agreement can be challenged if it was concluded under threat or in error, but that is hard to prove. If your employer offers you an agreement instead of dismissal for redundancy (tehnološki višak), bear in mind that you may then lose both severance pay and unemployment benefit. ## What should the agreement say? The day employment ends, payment of salary up to that day, and compensation for annual leave you have not used (Article 76). If you have agreed on a sum of money on leaving, the agreement must state the amount and the payment deadline. > **Deadline** The employer pays all unpaid salary, salary compensation and other earnings within 30 days of the end of employment. > > **Upit** with the agreement and the calculation of the final payment ## Agreement or resignation? If you want to leave, you do not have to ask for an agreement. You can also terminate the employment contract yourself, with a written notice delivered to the employer at least 15 days before the day you state as your last working day (Article 178). Internal rules (opšti akt) or the employment contract may set a longer period, but no more than 30 days. The difference is who sets the day you leave. When you give notice, you set it, subject to the notice period. With an agreement, the day is agreed, so it can even be the next day. ## When do you not need a lawyer? If you are leaving of your own accord, for example because you have found a new job, and the agreement only sets the day you leave and the payment of salary and compensation for unused annual leave, you can sign it without legal help. More care is needed with an agreement your employer offers instead of dismissal, or with a one-day deadline to reply. ## What to prepare - the draft agreement you received - the written notice of the consequences for unemployment benefit - your employment contract and all annexes - your salary calculations (obračun zarade) for the last three months - details of your unused annual leave ## Legislation - [Labour Law (Zakon o radu)](https://www.pravno-informacioni-sistem.rs/eli/rep/sgrs/skupstina/zakon/2005/24/1/reg): Articles 76, 119, 158, 177, 178 and 186 - [Law on Employment and Unemployment Insurance (Zakon o zapošljavanju i osiguranju za slučaj nezaposlenosti)](https://www.pravno-informacioni-sistem.rs/eli/rep/sgrs/skupstina/zakon/2009/36/25/reg): Article 67 This topic: [Employment law → Termination by agreement](https://advokatjelena.rs/en/employment-law#sporazumni-raskid) This article is for information only and is not legal advice. ## Related articles - [What if you are made redundant?](https://advokatjelena.rs/en/articles/redundancy) - [Do you have to sign an annex to your employment contract?](https://advokatjelena.rs/en/articles/employment-contract-annex) [All articles](https://advokatjelena.rs/en/articles) --- Source: https://advokatjelena.rs/en/articles/termination-by-agreement