Terminal termination agreements (ruptures conventionnelle) were created 17 years ago by the law of June 25, 2008, modernizing the labor market.

Approximately 42,000 termination agreements are signed each month.

Terminal termination agreements are a method of terminating an employment contract without cause.

Unlike dismissal, the employer does not have to provide a real and serious reason to terminate the employment contract.

Terminal termination agreements are often misused by employers who want to avoid dismissal proceedings with the associated legal risks.

In practice, employers almost always attempt to negotiate a termination agreement before initiating dismissal proceedings.

We note that in 50% of cases, termination agreements are disguised dismissals.

So how can you avoid being taken advantage of when signing a termination agreement?

This survival guide for employees gives you some tips for negotiating your termination agreement as effectively as possible.

1) My employer is offering me a mutual termination agreement: am I obliged to accept?

The answer is no.

Your employer cannot, under any circumstances, force you to sign a mutual termination agreement.

The parties' consent must be free and informed, which automatically excludes situations where the employee is pressured or threatened to sign the mutual termination agreement.

If your employer pressures you to sign a mutual termination agreement or implements a strategy to force you to leave (sidelining, unjustified criticism, overloading your work, etc.), this may be considered moral harassment (Paris Court of Appeal, January 29, 2025, RG 21/08894).

When negotiating a mutual termination agreement, the balance of power between employer and employee is completely unbalanced.

Indeed, the employer has an HR department and/or a legal department, while the employee often has no legal counsel.

This is why it is strongly recommended that you seek legal assistance to redress the balance of power.

2) I am on sick leave: can I sign a mutual termination agreement?

The answer is yes.

A mutual termination agreement can be entered into during periods of contract suspension, particularly in the event of:

- Sick leave;

- Sick leave due to an accident or occupational illness;

- Maternity leave, paternity leave, parental leave, or sabbatical leave.

If you are on sick leave for reasons related to your working conditions, this must be taken into account in the negotiations.

3) How does the procedure work?

3.1) Request for mutual termination

A mutual termination agreement request is not formal.

It can be requested by either party orally (interview, telephone contact) or in writing (letter, email, etc.).

3.2) Mandatory Interview

At least one interview must be held between you and your employer to discuss the terms of this termination (Article L.1237-12 et seq. of the French Labor Code).

You may be assisted during this interview by:

- Either a person of your choice from the company's staff (an employee holding a union mandate, a staff representative, or any other employee);

- Or, in the absence of a staff representative body within the company, an employee advisor chosen from a list drawn up by the administrative authority.

3.3) Signing the Agreement followed by a 15-Day Cooling-Off Period

Once the agreement is signed, your employer must provide you with an original copy of the dated and signed mutually agreed termination agreement.

The parties have a 15-calendar-day right of withdrawal, starting the day after the agreement is signed. If you wish to withdraw, you must inform your employer by registered letter with acknowledgment of receipt or by hand-delivered letter against receipt.

No reason for withdrawal is required.

3.4) Approval of the Agreement

If no withdrawal is received within the specified period, the termination agreement must be sent to the DDETSPP (Departmental Directorate for Employment, Labor, Solidarity, and Population Protection (formerly Direccte)) for approval.

This request is made electronically via TéléRC.

The DDETSPP then has 15 business days, starting from the day after receiving the request, to verify the validity of the agreement.

If there is no response within this period, the agreement is approved.

3.5) Special Cases: Protected Employees

The procedure is different for protected employees (union representatives, elected members of the social and economic committee, etc.) where the termination agreement is subject to authorization from the labor inspector (and not approval).

4) What is the legal amount to negotiate without getting ripped off?

The most important thing to negotiate is the amount of the specific termination agreement compensation.

4.1) At a minimum, you must receive a specific termination agreement compensation equal to the legal or contractual severance pay (Article L.1237-13 of the French Labor Code).

You can calculate it using the free online severance pay calculator provided by the Ministry of Labor, which can be viewed via the following link: Calculate severance pay.

4.2) Negotiate a statutory severance pay including the following amounts:

- Compensatory notice pay (from 1 to 3 months depending on your status and seniority) and the related paid leave (10% of the gross notice period);

- Compensation for dismissal without cause, as defined in Article L. 1235-3 of the French Labor Code, or the Macron scale.

For example, if you are a manager with 5 years of seniority (excluding a more favorable collective bargaining agreement), you can request: 1.25 months (statutory severance pay) + 3 months (notice) + 6 months (Macron scale ceiling), for a total of more than 10.5 months' salary as severance pay.

If you are a manager with 10 years of seniority (excluding a more favorable collective agreement), you can request: 2.5 months (statutory severance pay) + 3 months (notice period) + 10 months (Macron scale ceiling), i.e. a total of more than 15.5 months of salary as severance pay.

Indeed, since a mutual termination agreement is often a constructive dismissal, you must negotiate the compensation you could have received in the event of a conviction for dismissal without real and serious cause.

Furthermore, if you have been the victim of harassment or discrimination, or if you have worked overtime, you will need to request the corresponding compensation (see our article "How much should you negotiate your mutual termination agreement after the Macron decrees?").

You should also pay attention to the following points:

- The termination date (which must take into account the 15-day cooling-off period);

- Certain contractual clauses such as the non-compete clause or the training compensation clause. If your employer does not expressly waive them, you will still be required to comply with these clauses;

- Or certain benefits you have received, such as the company vehicle and accommodation, or the computer equipment made available to you.

The fate of these elements must be addressed in the mutual termination agreement.

5) Can I refer the matter to the Labor Court after signing the mutual termination agreement?

Yes.

It is possible to refer the matter to the Labor Court to obtain payment of unpaid overtime, back pay, non-compete compensation, etc.

Indeed, a mutual termination agreement does not end all disputes, unlike a settlement agreement.

However, it will be very difficult to challenge the mutual termination agreement before the Labor Court and have it reclassified as a dismissal without cause, except in cases where the mutual termination agreement was entered into in the context of moral or sexual harassment, or a defect in consent.

Please note: To avoid any risk of litigation, employers require employees to sign, in addition to the mutual termination agreement, a settlement agreement that ends any dispute.

In this case, the settlement agreement precludes you from taking action before the Labor Court.

Sources :

 

Frédéric CHHUM avocat et ancien membre du conseil de l’ordre des avocats de Paris (mandat 2019-2021)

CHHUM AVOCATS (Paris, Nantes, Lille)

e-mail: chhum@chhum-avocats.com

www.chhum-avocats.fr

https://www.instagram.com/fredericchhum/?hl=fr

.Paris: 34 rue Petrelle 75009 Paris tel: 0142560300

.Nantes: 41, Quai de la Fosse 44000 Nantes tel: 0228442644

.Lille: : 45, Rue Saint Etienne 59000 Lille – Ligne directe +(33) 03.20.57.53.24