The time limit to challenge a settlement agreement (transaction) is 5 years.
This is what the Court of Cassation affirmed in a decision dated October 8, 2025, published in the Bulletin (23-23.501).
1) Analysis
The legislature has continually reduced the time limit for challenging legal action.
Since the Macron Ordinance, for example, the time limit for challenging dismissal has been reduced to 1 year.
A bill aims to further reduce this time limit.
Regarding the challenge of a settlement, two texts were in conflict in this case.
The employee argued for the application of the 5-year time limit provided for in Article 2224 of the Civil Code concerning personal or movable property actions. Pôle Emploi argued for the application of a two-year time limit referred to in Article L. 1471-1, paragraph 1 of the French Labor Code, relating to actions concerning the performance or termination of an employment contract.
The Court of Cassation opted for the five-year time limit.
This is to be welcomed.
However, challenging a settlement is a difficult matter.
A settlement must contain reciprocal concessions from both parties. In the absence of real concessions, the settlement is void.
The judge must determine the parties' claims at the time the settlement agreement was signed and not based on facts extrinsic to the transaction (Cass. Soc., January 6, 2021, No. 18-26.109).
In this ruling, the Court of Cassation affirmed that the Paris Court of Appeal, "which assessed the derisory nature of the concession in light of the dismissal, the merits of which it was not its responsibility to verify," overturned the latter's ruling.
To read the full brief, click on the link below.
Source :
Cass soc. 8 /10/2025, 23-23.501
https://www.courdecassation.fr/decision/68e5fac7a28a47f8aa01639d
cass. soc. 6 janvier 2021, n° 18-26.109
Frédéric CHHUM avocat et ancien membre du conseil de l’ordre des avocats de Paris (mandat 2019-2021)
CHHUM AVOCATS (Paris, Nantes, Lille)
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