Monaco has officially modernised its labour legislation with the adoption of Law n°1.108, which introduces rupture conventionnelle — a mutually agreed termination of employment — for the first time in the Principality.

The reform was adopted by the National Council this week and immediately welcomed by the Government, which described it as a long‑awaited tool that brings Monaco’s employment framework in line with contemporary workplace realities.

Government Counsellor for Social Affairs and Health, Christophe Robino, told elected officials during Wednesday evening’s National Council public session that the measure represents “a balanced mechanism that provides legal security while protecting both parties”. He added that it is designed to “improve the work environment and encourage dialogue between employers and employees”.

The new system offers an alternative to traditional dismissal or resignation procedures, allowing employers and employees to agree on the terms of ending a contract, with safeguards overseen by Monaco’s Labour Department to ensure fairness.

Alongside the introduction of rupture conventionnelle, the reform also updates rules governing trial periods, notice periods and part‑time contracts, with the aim of improving clarity and strengthening protections for workers.

In its statement following the vote, the Government said the adoption of the law “marks an important step in the progressive modernisation of labour law in the Principality”, the result of collaborative work between the administration and the National Council.

The new provisions will now be implemented into the existing framework of Law n°729 of 16 March 1963, further reinforcing legal certainty for both businesses and employees in Monaco.

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Photo source: Government Communications Department