Publié le 27/08/2026

French labour law : Rupture conventionnelle : reduction in unemployment benefits starting September 1st, 26, following the signing of a RC – employees, executives, and senior executives

Article juridique - Droit du travail

The individual mutual termination agreement (*rupture conventionnelle individuelle* or RCI) is a method for terminating an open-ended employment contract (CDI) by mutual consent.

Terminating an employment contract via an RCI entitles the employee to the "return-to-work allowance" (*allocation de retour à l’emploi* or ARE).

However, starting September 1, 2026, the duration of benefit payments for this specific scenario will be modified.

Indeed, from that date onwards, the benefit duration for employees who have entered into an individual mutual termination agreement will differ from the standard duration.

I. Changes to employee benefits under the Law of June 11, 2026 (No. 2026-470)

Law No. 2026-470 of June 11, 2026—published in the *Journal Officiel de la République Française* (JORF) on June 12—reduces the duration of unemployment benefits, effective September 1, 2026, for all employees who have terminated their open-ended contract (CDI) via an RCI.

It was the social partners who initiated this reduction in the unemployment benefit period following an RCI.

The agreement (Amendment No. 3 of February 25, 2026, to the Memorandum of Understanding of November 10, 2023, regarding unemployment insurance) was subsequently enacted into law by the legislature through the aforementioned Law of June 11. Regarding the impact on the Return-to-Work Allowance (ARE), Unedic (the national inter-professional union for employment in industry and commerce) states on its website—in a fact sheet dedicated to the *rupture conventionnelle* (mutually agreed termination)—that a distinction must first be made between the "standard" benefit duration and the duration applicable following a mutually agreed termination.

The benefit duration following a mutually agreed termination is capped at 15 months for recipients under the age of 55 and at 20.5 months for those aged 55 and older.

Furthermore, recipients aged 55 to 56 may qualify for a "reloading" of their rights—meaning an extension of their benefits for an additional two months.

Recipients aged 57 and older may qualify for a reloading of rights granting them an additional six and a half months of benefits.

Currently, the maximum duration of unemployment benefits is 18 months for recipients under 55, 22.5 months for those aged 55 to 56, and 27 months for those aged 57 and older.

Comparison of maximum post-RCI compensation periods in metropolitan France currently vs. as of September 1, 2026

Employee Age Before September 1, 2028 From September 1, 2026

Under 55 years old 18 months 15 months

55 to 56 years old 22.5 months 20.5 months

57 years and over 27 months 20.5 months

Maximum compensation periods notified upon entitlement starting September 1, 2026

Employee Age at the date of termination of the employment contract Metropolitan France,

Under 55 years old 456 days (15 months)

55 years and over 624 days (20.5 months)

II. Analysis

The measure could encourage negotiated departures of employees through a dismissal-settlement agreement (licencement / transaction).

The new legislation results in a reduction—from two to six months—of the compensation awarded to those who have entered into an individual negotiated termination agreement.

The Council of State, in its opinion submitted to the government, considered that this differentiation did not violate the principle of equality before the law, as these are different methods of termination and therefore different situations that could thus be treated differently.

In practice, this reform should generate €800 million in savings per year by 2029.

However, this measure will certainly lead to a decrease in the attractiveness of negotiated termination agreements for employees who will receive less compensation than if they had been dismissed for personal reasons, for example.