Despite its success, the reciprocal cancellation contract is not an infallible solution and is regularly challenged before the Labour Court. Indeed, the Labour Court has jurisdiction to assess the validity of a contract for the authorised reciprocal cancellation of the employment contract of an unprotected worker (i.e. a worker without a staff representative mandate or who has not been appointed to participate in collective bargaining by a trade union organisation, or a worker who has not participated in the elections of undertakings) and, if necessary, such as effective dismissal and (“dismissal without real and serious cause”). The worker is then entitled to severance pay and compensation provided for in this situation. The financial consequences for the undertaking may therefore be significant, in particular as regards the age, seniority and personal situation of the worker concerned. In addition, the employment services will refuse to dismiss if they consider that such a method is only a means of circumventing the legislation on public order. For example, the administration received instructions on the extent of its control when a company used mutually agreed redundancies to avoid the development of a collective redundancy plan, which would have been a much more complex and costly procedure. The “pink note” has become a metonym for the termination of employment in general. According to a New York Times article, the editors of Random House Dictionary have at least dated 1910.  Each state has its own rules and regulations relating to contractual conditions.
In addition, one State may have a rule or regulation, while another State requests otherwise. This is why it is preferable to get legal advice in the context of a cancellation contract. The termination of an employment contract by a mutual cancellation agreement has the consequence that the worker is not able to benefit from the provisions relating to job security laid down in Article 18 and the related articles of the Labour Law and that he brings an action for re-employment because of these circumstances. However, a reciprocal cancellation agreement may be cancelled if the parties intend to engage corruptly in the execution of the mutual cancellation agreement or if a staff member has signed the reciprocal cancellation agreement with a reservation. In the event of ineffectiveness of reciprocal annulment agreements, an action for employment may be brought if the conditions for the application of the provisions on safety at work laid down in Article 18 of the Labour Law are met. Pink Slip refers to the U.S. practice of a human resources department of including a notice of termination in an employee`s salary envelope in order to inform the worker of their involuntary termination of work or termination.  The Labour Act does not have a specific provision concerning reciprocal cancellation agreements.
However, Supreme Court decisions have repeatedly stressed that reciprocal cancellation agreements, since they are legally “cancellation agreements”, are subject to the general provisions of the law of obligations. In Chilly Willy`s 1958 cartoon, M. recounts. Stoop Smedley that if he was disturbed while reading show scripts, he would be forced to slide it pink. Smedley suggests he doesn`t know the meaning of a “pink brief,” so Mr. Stoop yehes at him, “That means. You`re going to be fired! Other possibilities for terminating employment contracts are the exchange of notifications between an employer and a worker within the time limits set by law and immediate dismissal on fair grounds, in the event of the death of a worker and at the end of the agreed duration of fixed-term employment contracts. .