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Monaco has taken a decisive step toward modernising its labour framework with the National Council’s adoption of bill no. 1.108, a reform long awaited by both employers and employees. The new legislation introduces mutually agreed termination — a flexible system that allows both parties to end an employment contract by consensus, under clearly defined legal safeguards.
This mechanism, already common in neighbouring countries, offers a structured alternative to resignation or dismissal. By establishing a formal process for amicable separations, the reform aims to reduce conflict and minimise the risk of litigation. Employees gain stronger guarantees and clearer conditions, while companies benefit from greater legal security and predictability.
The Princely Government welcomed the adoption of the bill, highlighting that the measure responds directly to repeated requests from economic and professional sectors. It represents the result of close collaboration between the government and elected officials, united in their goal of adapting Monaco’s labour system to contemporary realities.
Beyond mutually agreed termination, the law updates several key areas of social legislation. Rules governing probationary periods have been clarified, notice periods have been modernised, and part-time contracts are now subject to more precise regulation — all contributing to a more coherent and transparent labour code.
This reform also amends two foundational texts: Law no. 729 of 16 March 1963 on employment contracts and Sovereign Ordinance no. 677 of 2 December 1959 on working hours. Together, these updates mark a significant advance for the Principality, aligning its labour laws with modern work practices and reinforcing protections for both companies and their staff.
For Monaco’s workforce and employers alike, the adoption of this bill signals a new chapter — one centred on clarity, fairness and a progressive vision of working life.