French Conventional Termination 2026: Full Procedure, Severance Calculation and DREETS Approval

Reviewed by Samuel Hayot, chartered accountant (expert-comptable), OEC Paris Île-de-France.

French conventional termination (rupture conventionnelle) is the standard way for an employer and an employee on a permanent contract (CDI) to end the employment relationship by mutual agreement. It is neither a dismissal nor a resignation: it is a distinct, legally protected procedure governed by Articles L1237-11 et seq. of the French Labour Code.

Direct answer: the procedure has five non-compressible steps — preliminary discussion, formal interview, signed agreement, a 15-calendar-day withdrawal period, and a 15-working-day administrative approval by the DREETS. Shortcut any step and the approval will be refused or the agreement voided.

British HR practice often assumes that a "mutual agreement" document and a settlement sum are sufficient to close an employment relationship. In France, that approach fails. The rupture conventionnelle is a judicial-grade procedure: the administration actively reviews the file, the minimum severance is non-negotiable, and the employee can challenge the agreement before the Conseil de prud'hommes (employment tribunal) for up to 12 months after approval. The contractual freedom that UK settlement agreements rely on does not apply in the same way.

The practical implication: every French mutual termination should follow the statutory process precisely, and the signed Cerfa form must reach the DREETS only after the 15-day cooling-off period has fully elapsed.

A conventional termination is neither an amicable dismissal nor a disguised resignation. It is a stand-alone procedure that protects the employee, and case law has tightened its scrutiny since 2009. The French Supreme Court (Cour de cassation) regularly annuls agreements signed under pressure, obtained during sick leave or concluded without a genuine, traceable interview.

What is most often challenged is not the agreement itself: it is the proof that the agreement was free and informed. A vague chronology, an undated interview or a severance payment below the legal minimum is enough to tip the case.

The law imposes no specific form to open discussions. However, from the moment the subject is raised, both parties should document the exchange: date, initiator, topics covered. An undocumented verbal exchange protects no one if the employee later claims they were pressured.

In practice, the most fragile files are those where termination was first proposed verbally during an annual review with no written follow-up. If the employee contests consent, there is nothing to rely on.

At least one formal interview must be held (Art. L1237-12 Labour Code). Both parties may be assisted:

• the employee: by a staff representative or, where none exists, by a conseiller du salarié from the prefectoral list;
• the employer: by a company employee or, if the company has staff representatives, by a member of an employers' organisation.

The interview must genuinely address three points: the reasons for the proposed termination, the financial terms and the feasible end date. A brief written note of the interview is strongly recommended.

The agreement is drawn up on the official Cerfa form available at formulaires.service-public.fr. It must state:

• full identity of both parties;
• the agreed severance amount (not below the legal minimum);
• the planned termination date (which must be after DREETS approval);
• the date of signature.

One copy is handed to the employee on the day of signing. This handover must be traceable.

This is the step most frequently executed incorrectly.

Legal rule (Art. L1237-13 Labour Code): from the day after signing, each party has 15 calendar days to withdraw. The count includes weekends and public holidays. Withdrawal must be notified by any means that proves the date of receipt.

Counting from the day of signature rather than the following day is the most common calendar error. It shortens the period by one day and causes the DREETS to return the file.

The complete Cerfa file is submitted to the territorially competent DREETS (or via the TéléRC online portal). The administration has 15 working days to review. It checks:

• that consent was free and informed;
• that the procedure was followed;
• that the severance is not below the legal minimum;
• that no fraud is being committed against the employee's rights.

Silence after 15 working days constitutes implied approval — but only if the file is complete. An incomplete file resets the clock.

Total realistic duration: 6 to 8 weeks from first interview to effective termination.

The severance cannot be less than the statutory redundancy payment (indemnité légale de licenciement) under Article R1234-2 of the Labour Code.

Statutory minimum:

The reference salary is the higher of the average monthly gross salary over the last 12 months or the average over the last 3 months (with variable elements prorated annually).

Worked example: 8 years' seniority, salary €3,500/month

Employee joined on 1 June 2018. Effective termination: 1 June 2026. Seniority: 8 complete years. Reference salary: €3,500 gross/month.

Calculation: 8 × ¼ × €3,500 = €7,000 gross minimum.

Parties may agree a higher amount. A figure modestly above the minimum reduces the risk of a later challenge to the voluntariness of consent.

Under Article 80 duodecies of the French Tax Code (CGI):

• The severance is exempt from income tax up to the higher of: twice the previous year's gross annual salary or 50% of the total payment (subject to a statutory cap — verify the current ceiling).
• The same fraction is exempt from social security contributions, within a limit of twice the annual social security ceiling (PASS).
• CSG/CRDS: exempt up to the lower of two amounts: the statutory or collective-agreement severance amount and the fraction exempt from social security contributions. The excess is subject to CSG at 9.2% and CRDS at 0.5%.

Critical point for retirement-eligible employees: an employee who is entitled to draw a pension from a legally mandatory scheme at the time of termination loses the income tax exemption. The entire severance is taxed as ordinary income, but the exemption from social security contributions and CSG/CRDS still applies within the same limits. This is regularly overlooked in negotiations.

The DREETS review is not limited to the form. Three points account for the majority of refusals or observations:

1. Severance below the legal minimum. This is the most common ground for refusal, often because the reference salary was underestimated or seniority was miscounted (an earlier fixed-term contract period overlooked, for example).

2. Consistency of dates. A termination date earlier than, or the same as, the approval date is incompatible with the procedure. A file returned for this reason delays the whole timetable by 3 to 4 weeks.

3. The employee's situation at the time of signing. An agreement signed during sick leave, while disciplinary proceedings are under way or after a recorded finding of unfitness for work may lead to requalification. Case law is firm: a conventional termination is not prohibited during ordinary sick leave, but consent must be demonstrated to a higher standard.

The employee may challenge the agreement before the Conseil de prud'hommes within 12 months of approval (Art. L1237-14 Labour Code). Grounds: coercion, vice of consent, procedural irregularity, or severance below the legal minimum. If requalified as dismissal without real and serious cause, the employer faces the barème Macron damages, notice pay and arrears. For a small employer, the total cost can be two to three times the cost of a correctly executed procedure.

A conventional termination generates several payroll items to anticipate before the effective date:

• the final settlement (solde de tout compte: paid leave accrued and not taken, prorated bonus, overtime);
• the specific conventional termination severance payment;
• the employer certificate for France Travail (opening of unemployment benefit rights);
• the employment certificate and the receipt for final settlement.

The payslip for the month of departure must be consistent with the signed agreement. Any discrepancy, however small, can reopen a dispute.

On the obligation to hold a prior interview in an HR context, see our feature on the mandatory professional interview.

A client who runs an SME with 12 employees came to us after the DREETS returned their approval request. The agreement had been submitted two days before the end of the withdrawal period: the timetable had been calculated from the day of signature rather than the following day. The administration returned the file with a request for regularisation. The result: a three-week delay to the leaving date, a payslip to correct and a France Travail certificate to reissue. The direct cost was low; the management time, far less so.

• The portion of the conventional termination severance that is exempt from social security contributions is not subject to the forfait social, the flat-rate employer levy (Article L. 137-15, 3° of the French Social Security Code): it bears the specific employer contribution described below.
• Payroll tax (taxe sur les salaires) may apply to certain businesses not subject to VAT: the conventional termination severance falls within its base, a point often overlooked.
• The specific employer contribution on conventional termination severance payments (40%, Article L. 137-12 of the French Social Security Code) is due whether or not the employee is entitled to a retirement pension.

1. The agreement is drawn up on the official Cerfa form currently in force
2. The termination date is after the approval
3. The 15-calendar-day withdrawal period has fully elapsed
4. The severance is not below the legal minimum calculated on the correct reference salary
5. A copy of the agreement was handed to the employee on the day of signing
6. The employee's situation has been checked (sick leave, ongoing proceedings, pension entitlement)
7. The approval file is complete before submission to the DREETS
8. The exit documents (France Travail certificate, employment certificate, final settlement statement) are prepared in parallel

• Completed and signed Cerfa 14598*01 (two originals)
• Proof of handover of the employee's copy on signing date
• Detailed severance calculation showing the reference salary used
• Proof of seniority (including any prior fixed-term periods)
• Chronology of interviews (dates, attendees, topics)
• Proof of dispatch to DREETS (receipt or TéléRC acknowledgement)

For further reading on the French payroll treatment of bonuses and severance components, see our article on whether bonuses are taxable. For directors considering termination before retirement, our analysis of cumul emploi-retraite 2026 is directly relevant.

This article is for information only. It does not replace a case-specific review of your documents, situation and applicable law. Seek professional advice before acting.