Can Employment Be Terminated by Mutual Agreement in France?

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Can Employment Be Terminated by Mutual Agreement in France?

Similar to a settlement agreement in the UK, a Rupture Conventionnelle allows an employer and employee to jointly terminate the contract of employment that exists between them.  The process usually begins with a letter of request from the employee, or an informal conversation started by the employer .

There is no mandatory requirement for either party to respond to a request for a rupture conventionnelle.  Related discussions are automatically classed as being without prejudice, but the agreement itself cannot be imposed by either party. 

What is the process of agreement for a rupture conventionnelle?

The employer must formally invite the employee to at least one interview, during which the agreement terms and conditions will be discussed and negotiated. 

While there are no specific requirements governing the meeting invitation, sending it in writing offers evidence that may be required in the event of any court proceedings later on.  It is also advisable to allow around five working days’ notice of the interview date.

What happens during the interview?

The employee may be assisted in each interview by a colleague of their choice or an approved employee adviser.  They must inform the employer if they are to be assisted; in which case the employer may also choose to be assisted by a colleague of their choice.

During the interview, the employer will present the employee with a series of documents that include the convention de rupture form (Cerfa document).  This sets out the details of the agreement, including the amount of compensation that will be paid to the employee and the formal date of termination of the employment contract.

How is the cost of termination calculated?

The amount paid cannot be less than statutory or conventional dismissal compensation, which should be calculated first so as to provide a reliable starting point. 

It should also be noted that if the employee has requested the rupture conventionnelle, the employer may offer the statutory minimum payment because the employee will be able to claim employment benefits following the termination – something they would not be able to do had they resigned. It is the main reason why employees in France tend to request a rupture conventionnelle instead of simply resigning.

Are there any conditions that govern the employment termination date?

The law imposes a minimum period between the signing of the convention de rupture and its submission for approval, or authorisation in the case of a protected employee, by the Direction Départementale de l’Emploi, du Travail, des Solidarités et de la Protection des Populations (DDETSPP).

From the date on which both parties sign the document, they will have 15 calendar days to exercise their right of withdrawal, which can be confirmed in writing without giving a reason for the decision.

Otherwise, the termination date may not take place before the day after the convention de rupture is approved or authorised.  The timeframe for the response by the administration is either 15 days for unprotected employees and 2 months for protected employees. Subject to this restriction, the parties are free to set the termination date as mutually agreed.  As the employment contract remains in place as normal until then, a long period between the earliest possible date and actual termination is best avoided, as this could potentially give rise to disciplinary issues or other problems before termination is reached.

Can we answer your questions about employment termination in France?

Our bespoke HR services define and clarify French employment processes for international clients with a presence in France.  Please contact us with any questions, or to arrange a free initial consultation.

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