Mutually agreed termination in a startup: procedure and costs (2026)

Mutually agreed termination (rupture conventionnelle) allows a permanent employment contract to end by agreement, provided a strict procedure and mandatory deadlines are followed. In 2026, it remains the most widely used tool for amicable separations, but the employer's actual cost depends on several components (compensation, specific contributions, paid leave, etc.). Here is an operational guide reflecting applicable rules.

Key points (short version)

• Limited to permanent contracts, by mutual agreement, governed by Articles L.1237-11 et seq. of the Labour Code (Legifrance).
• 5 mandatory steps: meeting(s), signed agreement, withdrawal period (15 calendar days), DREETS approval (15 working days), termination no earlier than the day after approval (Service-Public).
• Specific termination payment ≥ statutory severance (or collective-agreement amount if more favourable), calculated on reference pay (Justice.fr).
• Employer costs: compensation + specific employer contribution on the exempt portion + final settlement (salary, leave, bonuses) (URSSAF).
• Possible invalidity for defective consent; challenge within 12 months of approval (Service-Public).

Legal framework and conditions

Mutually agreed termination is available only for permanent contracts, outside probation, based on free, unvitiated agreement between employer and employee. It is governed by Articles L.1237-11 et seq. of the Labour Code (Legifrance) and the official procedure detailed on Service-Public. For protected employees, labour inspector authorisation is required instead of administrative approval.

The collective agreement may provide compensation at least as favourable as the law: check applicable scales (e.g. Syntec) before negotiating. For an overview of common tech-startup agreements, see our guide to the applicable collective agreement (Syntec/engineering consultancies).

Step-by-step procedure (5 mandatory steps)

1) Initiative and preparation

• Either employer or employee may initiate; formalise it in writing (meeting invitation), reminding the employee of the right to assistance.
• Check eligibility (permanent contract, no pressure, specific contract and collective-agreement clauses).

2) Preliminary meeting(s)

• At least one meeting is mandatory to discuss reasons, proposed date and compensation.
• The employee may be assisted; the employer may also obtain assistance if the employee does (detailed framework on Service-Public).

3) Written agreement

• Draft and sign the agreement (official template through the online service). It specifies, in particular, the termination date and specific termination payment (≥ statutory/collective-agreement minimum).
• Use the ministry's TéléRC online service (access through the Ministry of Labour) or business portal (Service Public Pro).

4) Withdrawal period (15 calendar days)

• Either party may withdraw during 15 calendar days from the day after signing (by registered letter with acknowledgement or hand delivery against receipt; see Service-Public).

5) Administrative approval (DREETS)

• After the period expires, an approval request is sent to DREETS through the online service.
• The administration has 15 working days to respond; silence constitutes approval (Service-Public).
• The contract end date cannot precede the day after approval (or authorisation for a protected employee).

Following termination, the employee may, subject to conditions, register with France Travail (formerly Pôle emploi). The ministry details 2026 employment and online-procedure changes (travail-emploi.gouv.fr).

How much does it cost the employer?

Cost items to anticipate

• Specific termination payment (statutory minimum or collective-agreement minimum if more favourable).
• Specific employer contribution (“flat-rate contribution”) due on the exempt portion of compensation, at the current rate (currently 30% according to URSSAF) (URSSAF).
• Final settlement: month's salary, payment in lieu of accrued leave, earned bonuses/variable pay, working-time reduction days, expenses.
• Possible additional costs (outplacement support, non-compete compensation if applicable, separate settlement).

Specific termination payment: calculation and floor

The statutory minimum aligns with statutory redundancy/dismissal compensation (unless collective-agreement provisions are more favourable). Conditions and calculation are detailed by Service-Public and the Justice.fr simulator/method. Key reminders:

• Minimum service for the statutory floor: 8 continuous months.
• Statutory formula (without more favourable collective-agreement provisions):
  • 1/4 of a month's salary per year of service for the first 10 years,
  • 1/3 of a month's salary per year beyond 10 years.
• Reference pay: monthly average over the last 12 months or last 3 months (whichever is more favourable, including prorated bonuses) (Service-Public).
• Fractions of a year are calculated pro rata temporis.

Indicative examples (monthly reference pay):

• Employee with 4 years' service, €4,000: 4 × 1/4 = 1 month, i.e. €4,000 (excluding any above-statutory payment).
• Employee with 12 years, €5,000: (10 × 1/4) + (2 × 1/3) = 3.166… months, i.e. approximately €15,833.

Always check whether your collective agreement imposes a higher minimum (e.g. Syntec). See our tech-startup collective agreement comparison.

Contributions and tax (employer perspective)

• The specific termination payment is generally exempt from social-security contributions up to the statutory or collective-agreement amount and subject to tax ceilings; the exempt portion nevertheless attracts a specific employer contribution (“flat-rate contribution”) at the current rate (URSSAF).
• The above-statutory portion may attract contributions and tax depending on ceilings; check the precise regime with URSSAF and the tax administration.

Indicative amounts (assuming the current URSSAF rate of 30% on the exempt portion):

• Statutory compensation of €4,000 → employer contribution approximately €1,200 (excluding leave/bonuses).
• Statutory compensation of €15,833 → employer contribution approximately €4,750.

Details of social-security rules for mutually agreed termination payments are centralised by URSSAF (URSSAF guide). The official procedure, deadlines and approval are outlined by the government on Service-Public and the Ministry of Labour website.

Points to watch for startup employers

• No notice period is due for mutually agreed termination (the end date is agreed), but the employee remains employed until that date; plan arrangements (access transfers, handover).
• Free consent: prohibit all pressure; retain evidence of genuinely negotiated meetings. Otherwise, the agreement may be annulled and reclassified as dismissal without real and serious cause (Service-Public).
• Protected employees: follow the labour inspectorate authorisation procedure.
• Variable pay/bonuses: document earned rights payable at settlement (targets achieved, prorating) to avoid litigation.
• Collective agreement: under Syntec, a collective-agreement scale may apply; review HR policies. Link this to the initial contract-type choice (permanent/fixed-term).
• If you have key providers, assess freelancer/employee reclassification risks that may affect exit policy.

Typical timeline and checklist

• Day 0: meeting (or invitation) — right to assistance.
• Day 0/day +5: agreements discussed and signed through TéléRC (Service Public Pro).
• Day +1 to +15: withdrawal period (15 calendar days).
• Day +16: submit DREETS approval request.
• Day +16 to +…: examination period (15 working days). Silence = approval.
• Termination no earlier than the day after approval; compensation and final settlement paid on that date.

To make templates reliable (invitations, agreements, final-settlement receipts) and automate deadline reminders, see how to automate contract management in your Legal Ops stack. To frame all employment obligations for hiring and departure, revisit our first-employee formalities memo.