Mutual termination simulator
Estimate a French mutual termination indemnity and use the page to frame the legal minimum, employer cost, timing and payroll consequences before any negotiation starts.
See the legal minimum before any negotiation starts.
Measure the gap between the indemnity, employer cost and payroll impact.
Secure the process before withdrawal and administrative approval.
Quick answer
What is the timeline of a French mutual termination and when does the contract end?
After signing, each party has 15 calendar days to withdraw; the approval request (homologation) is filed online via TéléRC from the next day at the earliest, then the labour administration has 15 working days (jours ouvrables) to review it, silence meaning approval. The contract ends at the earliest on the day after approval. 2026 example: signed on Friday 16 October, withdrawal period ends Monday 2 November, approval on Monday 23 November, earliest end date Tuesday 24 November, about 5 to 6 weeks after signing.
- Withdrawal period
- 15 calendar days
- Review period
- 15 working days (Mon to Sat)
- Employer levy 2026
- 40% of the exempt part
Reviewed by Samuel Hayot, chartered accountant (Ordre des experts-comptables), last updated
Steps and statutory deadlines of a mutual termination
A mutual termination (rupture conventionnelle) of a French permanent contract (CDI) follows a sequence set by articles L1237-11 to L1237-16 of the Labour Code. Employer and employee hold at least one meeting, where each may be assisted. They then sign an agreement stating the specific termination payment and the end date. The Code sets no minimum gap between the meeting and signature, but leaving a few days for reflection strengthens the evidence of free consent.
The 15 calendar-day withdrawal period starts the day after signature. If it ends on a Saturday, Sunday or public holiday, it runs to the next working day. The approval request can only be filed from the day after that period ends, normally through the TéléRC online service. The labour administration (DREETS or DDETS) then has 15 jours ouvrables from the day after receipt to review it. Note that jours ouvrables in French law include Saturdays: every day except Sunday and non-worked public holidays.
If no answer is given within that period, the agreement is deemed approved (tacit homologation). The end date in the agreement cannot be earlier than the day after approval, but it can be later. There is no notice period: until the end date the employee works and is paid as usual. For a protected employee (staff representative), approval is replaced by an authorisation from the labour inspector.
How deadlines and the payment are calculated
- End of withdrawal period
- Signature + 15 calendar days, moved to the next working day if Saturday, Sunday or public holiday
- Filing the approval request
- At the earliest the day after the withdrawal period ends
- Approval (tacit)
- Receipt + 15 working days (excluding Sundays and public holidays), moved if the last day is a Saturday, Sunday or holiday
- End of contract
- At the earliest the day after approval
- Minimum payment (statutory severance)
- Reference salary × (1/4 × years up to 10 + 1/3 × years beyond 10)
- Reference salary
- The more favourable of the last 12 months’ or last 3 months’ average
- Specific employer levy
- 40% × part of the payment excluded from the social contribution base (terminations effective from 1 January 2026)
Incomplete years count pro rata by month. If the collective agreement provides a higher severance payment, it is usually the floor. The simulator counts the review period in working days (Monday to Saturday) and includes mainland French public holidays; company-specific days off or Alsace-Moselle holidays are not taken into account.
Running a mutual termination in 6 steps
A flawless timeline avoids a refusal or a later challenge. This is the sequence we recommend to employers whose payroll we handle.
- 1
Price the exit before the first meeting
Compute exact seniority at the planned end date, the reference salary (last 12 or 3 months, whichever is higher) and the statutory or collective-agreement floor. Also price the final pay settlement and the employer levy: that is the real cost of the departure.
- 2
Hold at least one meeting and keep a record
Invite the employee in writing, stating they may be assisted. Record each meeting date in the agreement: it is one of the first things the administration checks.
- 3
Complete TéléRC and sign the agreement
Enter the request on TéléRC, print the form and have both parties date and sign it by hand. Give the employee a signed copy immediately: without it, the agreement can be voided.
- 4
Let the 15-day withdrawal period run
File nothing before it ends. A withdrawal must be sent to the other party by registered letter or hand-delivered against receipt; no reason is required.
- 5
File the request the next day
Submit on TéléRC at the earliest the day after the withdrawal period ends and keep the acknowledgement: it sets the start of the 15 working-day review.
- 6
Prepare the exit during the review
Plan the final payroll: termination payment, paid-leave compensation, pro-rated bonuses, then the final settlement receipt (reçu pour solde de tout compte), employment certificate and unemployment certificate (attestation France Travail), all due on the end date.
2026 timeline and cost example
An employee with 6 years and 3 months of seniority, earning a €4,200 gross monthly reference salary, negotiates a €9,000 payment: these are the simulator default values. The agreement is signed on Friday 16 October 2026, taking into account the 1 and 11 November public holidays.
| Step | Rule applied | Date or amount |
|---|---|---|
| Signature | After at least one meeting | Friday 16 October 2026 |
| End of withdrawal period | Day 15: Saturday 31 October, then Sunday 1 November (holiday) | Monday 2 November 2026 |
| Filing on TéléRC | The next day at the earliest | Tuesday 3 November 2026 |
| End of review | 15 working days from 4 to 21 November (11 November excluded), 21 November is a Saturday | Monday 23 November 2026 |
| Earliest end of contract | Day after approval | Tuesday 24 November 2026 |
| Statutory minimum payment | 4,200 × 1/4 × 6.25 years | €6,562.50 |
| Negotiated payment | Above the floor | €9,000 |
| Part subject to CSG and CRDS | 9,000 − 6,562.50 | €2,437.50 |
| Specific employer levy | 9,000 × 40% | €3,600 |
| Employer cost of the payment | 9,000 + 3,600 | €12,600 |
Reading: 39 days separate signature from the earliest end date. The €9,000 payment is free of income tax (below twice the €50,400 annual gross pay) and of social contributions (below 2 annual social security ceilings, €96,120 in 2026); only the €2,437.50 above the statutory amount bears CSG and CRDS (French social levies on income). For the employer, the 40% levy adds €3,600, before the last month’s salary and paid-leave compensation included in the final settlement.
Tax and social treatment of the payment in 2026
These limits apply to an employee not yet entitled to a basic state pension. The annual social security ceiling (PASS) is €48,060 in 2026.
| Levy | Exempt part | Taxable part |
|---|---|---|
| Income tax | Highest of: statutory or collective-agreement amount, 2 × annual gross pay, 50% of the payment; capped at 6 PASS (€288,360) | The excess |
| Social security contributions | Tax-exempt part, capped at 2 PASS (€96,120) | The excess; the whole payment if it exceeds 10 PASS (€480,600) |
| CSG and CRDS | Lower of: statutory or collective-agreement amount, part exempt from contributions | The amount above the statutory payment |
| Specific employer levy | None | 40% of the part excluded from the contribution base |
| Employee entitled to a basic state pension | None | Taxable and subject to contributions from the first euro |
The specific employer levy rose from 30% to 40% for terminations taking effect from 1 January 2026 (2026 Social Security Financing Act, article L137-12 of the Social Security Code). It is reported in the monthly payroll filing (DSN) under personnel type code 719.
Best practices to hold the timeline and the budget
- Set an end date a few days after the theoretical approval date: a date that is too early leads to refusal.
- Check the timeline against the year’s public holidays: in 2026, 1 and 11 November, 8 May, Ascension Day (14 May) and Whit Monday (25 May) push deadlines back.
- Use TéléRC rather than the paper form, which is reserved for cases where the online service cannot be used: the dated acknowledgement secures the start of the review.
- Budget the full cost: payment, 40% employer levy, last salary, paid-leave compensation and pro-rated bonuses.
- Check the collective agreement before taking the statutory amount as the floor: many industry agreements provide more.
- Recalculate seniority at the end date, not the signing date: months accrued during the procedure raise the minimum.
Mistakes that delay or weaken the termination
Filing during the withdrawal period
A request sent before the 15 days have run is inadmissible: it will be rejected and the process must restart, pushing the exit date back by several weeks.
Counting working days as Monday to Friday
French jours ouvrables include Saturdays. Counting only weekdays, or forgetting public holidays, gives a wrong approval date in either direction.
Setting an end date before approval
The end date must be at the earliest the day after approval. An earlier date leads the administration to refuse the agreement.
Agreeing a payment below the minimum
A payment below the statutory amount, or the collective-agreement amount where it applies, leads to refusal. The usual cause is a 12-month reference salary when the last 3 months were more favourable.
Including paid leave in the termination payment
Paid-leave compensation is due on top and is treated as salary (contributions, income tax). Mixing it into the termination payment distorts both the floor and the social treatment.
A mutual termination is never just a number on an agreement
For the employer, the topic combines labour law, social cost, timing, operational handover and HR coherence. For the employee, compensation level, deadlines and clarity on rights matter from the start. A useful simulator is therefore less about producing a number than about structuring a clean negotiation and a process that can hold up.
The legal minimum
French public guidance states that the specific compensation is negotiated between employer and employee, but it cannot be lower than the statutory dismissal indemnity. There is no minimum seniority requirement to receive it.
- The statutory minimum is the floor, not the final negotiation outcome.
- A collective agreement may provide a more favourable amount.
- A simulator helps frame the numbers before discussions begin.
Process and deadlines
A French mutual termination requires mutual consent, at least one meeting and administrative approval. It cannot be imposed by one party alone, so the sequence and documentation matter from the start.
- Neither the employer nor the employee must accept the request.
- The file needs a clean and defensible chronology.
- A badly prepared process creates avoidable HR risk.
The real employer cost
The analysis should not stop at the amount paid to the employee. It needs to connect the indemnity to total employer cost, payroll effects, employer contributions and the practical reality of the departure.
- Exit cost should be compared with the cost of keeping the role.
- The negotiated package should remain coherent with the social context.
- A clean estimate prevents improvised negotiations and inconsistent treatment.
What a serious simulation should clarify
The value of a simulation comes from connecting legal, financial and operational consequences. That combination is what avoids weak agreements, payroll surprises and poor timing.
- The legal or contractual minimum that applies.
- Total employer cost, not only the headline indemnity.
- The real sequence between meetings, withdrawal and approval.
- Payroll, final settlement and organisational consequences of the departure.
Mutual termination FAQ
Is there a minimum seniority requirement to receive compensation?
No. French public guidance states that there is no minimum seniority condition to receive the specific mutual termination compensation.
Must the employer accept a mutual termination request?
No. Neither the employer nor the employee is obliged to accept a mutual termination request. The mechanism is based on mutual consent.
Why estimate the case before negotiating?
Because you need to understand the legal floor, the real budget impact and the procedural timing before discussing the exit package seriously.
What is the minimum time between signature and the end of the contract?
Allow about 5 to 6 weeks at minimum: 15 calendar days to withdraw, filing the next day, then 15 working days of review, with the contract ending at the earliest the day after approval. For a signature on 16 October 2026, the earliest end date is 24 November 2026.
How is the withdrawal period calculated?
The 15 calendar-day period starts the day after signature. If day 15 falls on a Saturday, Sunday or public holiday, it moves to the next working day. For a signature on Monday 5 October 2026, either party can withdraw until Tuesday 20 October 2026 inclusive.
What happens if the administration does not reply to the approval request?
Silence means approval: the agreement is deemed approved when the 15 working-day period after receipt expires. The employer can then end the contract on the date set in the agreement, at the earliest the day after this tacit approval.
Can the contract end several weeks after approval?
Yes. The law only sets an earliest date, the day after approval. The parties may agree a later date, for example to organise a handover or use up leave. The employee keeps working and is paid normally until then.
How is the minimum mutual termination payment calculated?
It is at least the statutory severance payment: 1/4 of a month’s salary per year up to 10 years, then 1/3 per year beyond. For 12 years’ seniority and a €3,000 reference salary: 3,000 × (10 × 1/4 + 2 × 1/3) = €9,500. The collective agreement may provide more.
Which employer levy applies to a mutual termination in 2026?
A specific 40% levy on the part of the payment excluded from the social contribution base, for terminations effective from 1 January 2026. It was 30% from 1 September 2023. For a fully exempt €9,000 payment, the employer pays €3,600 of levy.
What does the final settlement include after a mutual termination?
The last salary up to the end date, the specific termination payment, compensation for paid leave earned but not taken, and pro-rated contractual bonuses. The final settlement receipt can be challenged within 6 months of signature; the employment certificate and France Travail certificate are handed over at the same time.
How does a mutual termination work for a protected employee?
It is not approved but authorised by the labour inspector, after consulting the CSE where the law requires it. Without a reply within 2 months, the request is deemed rejected. The contract can only end the day after authorisation at the earliest, which lengthens the timeline considerably.
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