National Council of Monaco adopts major labour law reform

The National Council has voted through the bill introducing mutually agreed termination of contract, marking a long-awaited modernisation of Monaco’s labour code.

On Thursday, the National Council adopted bill no. 1.108, which introduces mutually agreed termination into Monegasque labour law. The new form of severance allows employer and employee to agree jointly on ending the employment contract within a secure legal framework.

The Princely Government welcomed the finalisation of the law, the result of collaborative work with national representatives. The new legal measure has been introduced following persistent requests from economic and professional stakeholders, who now have an alternative to existing forms of contract termination.

A fair system for employers and employees

The main benefit of the bill lies in its ability to prevent disputes. By strictly regulating the conditions for amicable separation, the legislation provides strong guarantees for employees while reducing the risk of legal action for companies. Beyond mutually agreed termination, the adopted law modernises several aspects of social law. Provisions relating to probationary periods have been updated, as have notice periods. The law also provides more precise regulation of part-time contracts to improve clarity in the regulatory framework.

The reform is part of a progressive approach to modernising labour law in the Principality. It amends Law no. 729 of 16 March 1963 on employment contracts as well as Sovereign Ordinance no. 677 of 2 December 1959 on working hours. The Princely Government considers its adoption a significant step in adapting Monaco’s legal system to the current realities of working life.