Termination by mutual agreement in France, also known as “rupture conventionnelle,” is a unique way of ending an employment contract in France. It is a process that allows both the employer and the employee to agree on the terms of separation without the need for litigation.
In this article, we will explore the process of termination by mutual agreement in France and how it can benefit both the employer and the employee.
What is Termination by Mutual Agreement in France?
Termination by mutual agreement in France is a process where both the employer and the employee agree to terminate the employment contract. It is an alternative to other traditional ways of ending an employment contract, such as dismissal or resignation.
The process is regulated by Article L. 1237-11 of the French Labor Code, which lays down certain conditions that both parties must adhere to in order to validate the agreement. The process is open to all employees with a permanent or fixed-term contract, regardless of the size of the company or the length of employment.
Benefits of Termination by Mutual Agreement
There are several benefits to termination by mutual agreement for both employers and employees. For employers, it is a way of avoiding lengthy and costly legal proceedings and can help avoid a negative image associated with dismissal. Additionally, the process allows employers to maintain good relationships with employees who choose to leave the company.
For employees, the process offers several advantages, including financial compensation, unemployment insurance, and a positive reference from the employer. This can also allow employees to leave their current position on good terms, without having a negative impact on their future job prospects.
The Process of Termination by Mutual Agreement
The process of termination by mutual agreement in France involves several steps, which include:
1. Negotiations: The process begins with negotiations between the employer and the employee. Both parties must agree on the terms of the termination, including the date of termination, financial compensation, and any other agreed-upon conditions.
2. Agreement: Once the terms have been agreed upon, both parties must sign a written agreement that outlines the terms of the termination.
3. Approval: The agreement must be sent to the labor authorities for approval. The labor authorities will review the agreement to ensure that it meets the requirements of the French Labor Code.
4. Withdrawal Period: After approval, there is a mandatory withdrawal period of 15 days during which both parties may withdraw from the agreement without any penalty.
5. Termination: If there is no withdrawal during the withdrawal period, the agreement becomes binding, and the employment contract is terminated on the agreed-upon date.
Conclusion
Termination by mutual agreement in France is a beneficial process for both employers and employees. It allows both parties to agree on the terms of separation and can help avoid lengthy and costly legal proceedings. It is important to understand the process and adhere to the conditions set out in the French Labor Code to ensure a successful termination by mutual agreement.