The negotiated termination (rupture conventionnelle) is the most widely used form of termination of an open-ended employment contract in France after resignation. It allows the employer and employee to end their employment relationship by mutual agreement, under a procedure governed by the Labour Code and approved by the administrative authority. Flexible, legally secure and entitling the employee to unemployment benefit, it is often presented as the ideal solution — but it requires compliance with precise conditions and may be challenged where consent was not freely given.
1. Negotiated termination: definition and conditions
1.1 – What is a negotiated termination?
A negotiated termination is an amicable form of termination of an open-ended employment contract (CDI), introduced by the Act of 25 June 2008. It is codified in Articles L. 1237-11 to L. 1237-16 of the Labour Code. It cannot be imposed by either party: it requires the free and informed agreement of both signatories.
It is distinct from:
- Dismissal: a termination at the employer’s initiative on specific grounds
- Resignation: a termination at the employee’s initiative
- A settlement agreement (transaction): which is concluded after termination of the contract and presupposes a pre-existing dispute
1.2 – Who can conclude a negotiated termination?
Negotiated termination is reserved for employees on open-ended contracts (CDI). It cannot be used to terminate a fixed-term contract or an apprenticeship contract. It applies across all sectors, including to protected employees — but in that case, a specific procedure applies (see section 6).
Important note
Negotiated termination cannot be used to circumvent the protective rules governing economic dismissal. If it occurs in a context of economic difficulties or job elimination, it may be reclassified as an economic dismissal without real and serious cause.
1.3 – The principle of free and informed consent
The validity of a negotiated termination rests entirely on the free and informed consent of both parties. Any defect in consent, whether fraudulent misrepresentation, moral duress or mistake, may result in the agreement being voided. The Court of Cassation monitors this point strictly: an employee who signs a negotiated termination under pressure, in a context of harassment or following an unresolved dispute, may obtain annulment of the agreement and damages.
2. The negotiated termination procedure
2.1 – The preliminary meeting
The procedure must begin with at least one meeting between the employer and the employee, at which they agree on the terms of the termination (Art. L. 1237-12 of the Labour Code). At this meeting, the employee may be accompanied by:
- An employee representative or trade union delegate present in the company
- An employee adviser chosen from a prefectoral list, where the company has no employee representatives
If the employee chooses to be accompanied, they must inform the employer before the meeting. The employer may then also be accompanied, on the same basis.
2.2 – Signing the agreement
At the conclusion of negotiations, the parties sign a termination agreement using the official Cerfa form n° 14598*01 (individual negotiated termination) or Cerfa n° 14599*01 (collective negotiated termination). This agreement sets out in particular:
- The planned termination date
- The amount of the specific negotiated termination payment
2.3 – The withdrawal period
From the day after the agreement is signed, each party has a withdrawal period of 15 calendar days (Art. L. 1237-13 of the Labour Code). Withdrawal must be notified by registered letter with acknowledgement of receipt or by hand-delivered letter against signed receipt. No reason is required.
Key point
The withdrawal period is a matter of public policy and cannot be reduced by agreement of the parties. An agreement providing for a period of less than 15 days would be void. The termination date cannot precede the day after approval, nor fall before the expiry of the withdrawal period.
2.4 – The approval application
Once the withdrawal period has expired, the more diligent party submits the agreement to the DREETS (Regional Directorate for the Economy, Employment, Labour and Solidarity) for approval via the TéléRC online service. The administration has 15 working days to process the application. Silence within that period constitutes tacit approval.
3. The specific negotiated termination payment
3.1 – The statutory minimum amount
The employee is entitled to a specific negotiated termination payment of no less than the statutory severance payment (Art. L. 1237-13 and R. 1234-1 of the Labour Code), that is:
- 1/4 month’s salary per year of service for the first 10 years
- 1/3 month’s salary per year beyond 10 years
The applicable collective bargaining agreement may provide for a more favourable contractual severance payment. In that case, that amount constitutes the floor for the negotiated termination payment.
3.2 – Basis of calculation
The payment is calculated on the basis of the employee’s average gross remuneration over the 12 months preceding notification of the termination, or over the last 3 months if that calculation is more favourable to the employee (taking into account annual bonuses and gratifications). The length of service taken into account is that at the planned termination date.
3.3 – Tax and social security treatment
The negotiated termination payment benefits from a favourable tax and social security regime up to certain thresholds:
- Income tax exemption up to twice the annual social security ceiling (PASS), i.e. €92,736 in 2025, or up to the statutory or contractual severance amount if higher
- Social security contribution exemption up to the same threshold, provided the employee is not entitled to a pension under a statutory retirement scheme
- Subject to the flat-rate social levy (forfait social) of 20% on the portion exempt from social security contributions
2026 update: employer contribution raised to 40%
Since 1 January 2026, the specific employer contribution due on the portion of the negotiated termination payment exempt from social security contributions has been raised to 40% (up from 30%). This increase has a direct impact on the overall cost of a negotiated departure and must be factored into any financial planning. It does not apply to the full payment, but only to the portion exempt from social security contributions, capped at twice the PASS (€96,120 in 2026). Find out more about the impact of this increase for employers and employees.
Important note: employees of retirement age
If the employee is entitled to a full-rate pension at the time of termination, the negotiated termination payment is fully subject to social security contributions and income tax, with no exemption. This point is frequently overlooked and may have significant financial consequences.
4. Approval by the DREETS
4.1 – Administrative review
The DREETS verifies that the agreement complies with the legal conditions of form and substance: the withdrawal period has been respected, the payment is at least equal to the statutory minimum, and the termination date falls after approval. It does not assess the merits of the termination or the economic balance of the negotiation.
4.2 – Refusal of approval
The DREETS may refuse approval where the legal conditions are not met. The most common grounds are:
- Payment below the statutory minimum
- Failure to observe the withdrawal period
- Termination date preceding the day after approval
- Incomplete or irregular form
In the event of refusal, the parties may restart the procedure after correcting the identified irregularities.
4.3 – Collective negotiated termination
Collective negotiated termination (rupture conventionnelle collective, RCC), introduced by the Macron Ordinances of 2017, allows an employer to offer voluntary departures under a collective agreement, without any economic ground. It is subject to validation by the DREETS (rather than approval) and does not give rise to a job protection plan (PSE). It represents an alternative to economic dismissals for companies wishing to reduce headcount on a voluntary basis.
5. Challenging a negotiated termination
5.1 – Time limit for bringing a challenge
Any challenge to the termination agreement must be brought before the labour tribunal within 12 months of the date of approval of the agreement (Art. L. 1237-14 of the Labour Code). This is a fixed deadline that cannot be suspended or interrupted, except in very limited circumstances.
Important note
The 12-month period is very short. An employee who considers they signed under pressure or in a context of harassment must act promptly. Once this deadline has passed, the negotiated termination becomes final and cannot be challenged, however serious the circumstances.
5.2 – Grounds for nullity
A negotiated termination may be annulled by the labour tribunal in the following cases:
- Defect in consent: moral duress, harassment, pressure, fraudulent misrepresentation or mistake having vitiated the employee’s consent
- Fraud: negotiated termination concluded to circumvent the rules governing economic dismissal or statutory protections
- Procedural irregularities: failure to observe the withdrawal period, absence of a preliminary meeting, non-compliant form
- Insufficient payment: amount below the statutory or contractual minimum
5.3 – Consequences of nullity
If the negotiated termination is annulled, it produces the effects of a dismissal without real and serious cause. The employee may obtain damages under the Macron scale, as well as reimbursement of unemployment benefit received since the termination. Where nullity results from harassment or a violation of a fundamental freedom, compensation is awarded outside the scale.
6. Special cases and risk situations
6.1 – Negotiated termination during sick leave
A negotiated termination is possible during sick leave, including leave following a workplace accident or occupational illness. However, the courts are watchful: where the employee is in a state of particular vulnerability (depression, burnout, anxiety), the judges will carefully examine whether consent was free and informed.
6.2 – Negotiated termination and protected employees
For employees holding an employee representative mandate (trade union delegate, CSE member, etc.), negotiated termination is possible but subject to a specific procedure: it must be authorised by the labour inspector, not merely approved by the DREETS (Art. L. 1237-15 of the Labour Code). Authorisation may be refused if the inspector considers that the termination is connected to the exercise of the mandate.
6.3 – Negotiated termination and the probationary period
Negotiated termination is not available during the probationary period. During that period, termination of the contract is governed by specific rules: either party may bring it to an end freely, subject to observing the applicable notice periods.
6.4 – Negotiated termination in a conflictual context
Negotiated termination is not prohibited where there is a dispute between the parties, but it is particularly exposed to challenge. An employee invited to a disciplinary meeting who signs a negotiated termination in the days following will often be regarded as having acted under duress. The courts regularly annul negotiated terminations concluded in such circumstances.
7. Frequently asked questions about negotiated termination
Yes. An employee who benefits from an approved negotiated termination is entitled to unemployment benefit (ARE) paid by France Travail, provided they meet the affiliation conditions (having worked at least 6 months in the preceding 24 months). This is one of the main advantages of negotiated termination over resignation, which does not give rise to unemployment benefit except in cases of legitimate resignation.
Yes. Negotiated termination rests on mutual agreement: neither the employer nor the employee can impose it on the other. An employer may refuse an employee’s request without giving reasons. Equally, an employee may refuse the employer’s proposal. In either case, the employment relationship continues normally.
No. A negotiated termination does not give rise to a notice period. The termination date is freely agreed by the parties in the agreement, provided it falls after the day following approval and after expiry of the withdrawal period. The parties may nonetheless agree on a working period up to the termination date if they wish.
Yes, subject to the statutory minimum. The parties are free to agree on an amount above the legal floor, and this is often where the main negotiation takes place. The employee is well advised to assess their rights precisely (length of service, collective agreement, bonuses) before signing, and not to accept the bare minimum. An employment lawyer can assist with this negotiation.
As early as possible, ideally before signing anything. For the employee, a consultation allows the payment to be verified, the merits of the termination to be assessed against other options (dismissal, legitimate resignation) and the balance of the negotiation to be checked. For the employer, it secures the procedure and reduces the risk of subsequent challenge.
Your employment lawyer for a negotiated termination
Negotiated termination is often presented as a straightforward procedure, and in appearance it is. But behind the signing of a form lie significant financial issues (payment calculation, tax treatment), legal risks (defective consent, reclassification) and strategic choices (negotiated termination or dismissal, negotiating the amount). Prior consultation allows the termination to be approached with full knowledge of the facts.
As specialists in employment law, Patchwork Avocats assists employees and companies in negotiating and securing their negotiated terminations, as well as in challenging irregular agreements.
