France: New Rules Reduce Unemployment Benefit Duration Following Mutual Termination Agreements

New rules introduced in France on 1 September 2026 have reduced the maximum duration of unemployment benefits available to employees whose employment ends through an individual mutual termination agreement (rupture conventionnelle).

The changes affect employees who agree with their employer to terminate their employment contract by mutual consent. The duration of unemployment benefits following dismissal remains unchanged.

The reforms form part of wider amendments to France’s unemployment insurance system and are particularly relevant to employers and employees negotiating employment termination arrangements.

Changes to Unemployment Benefit Duration

Under the new rules, the maximum period during which an eligible employee may receive unemployment benefits from France Travail has been reduced according to the employee’s age at the end of their employment contract.

For employees in mainland France, the changes are as follows:

The reductions range from two months for employees aged 55–56 to 6.5 months for those aged 57 and over.

Different rules apply in certain French overseas territories. For eligible employees residing in overseas departments and territories other than Mayotte, the new maximum durations are generally 20 months for those under 55 and 30 months for those aged 55 and over.

When Do the New Rules Apply?

The revised benefit durations apply to individual mutual termination agreements where the employment contract ends on or after 1 September 2026.

Importantly, the determining factor is the effective termination date, rather than the date on which the mutual termination agreement is signed.

Consequently, an agreement signed before 1 September 2026 will generally fall within the new rules if the employment contract terminates on or after that date.

Employees whose employment ended before 1 September 2026 remain subject to the previous benefit durations.

Extensions for Employees Aged 55 and Over

Employees aged 55 or over when their employment ends may request an extension of their unemployment benefits beyond the new maximum period.

However, extensions are not automatic and remain subject to an individual assessment by France Travail.

When reviewing an application, France Travail will consider the employee’s efforts to return to employment or pursue an appropriate professional project.

Relevant factors may include active job searching, participation in training, career development, professional retraining or steps towards establishing a business.

Employees seeking an extension should therefore maintain appropriate records of their employment-related activities and professional development efforts.

Practical Implications for Employers and Employees

The changes are particularly relevant when negotiating mutual termination agreements, as the reduced benefit periods may influence an employee’s financial planning and willingness to accept an agreed termination.

Employers and employees should consider the following:

• Termination dates: The effective date on which the employment contract ends determines whether the revised rules apply.

• Financial planning: Employees should understand how the shorter benefit periods may affect their income following termination.

• Age-related entitlements: Employees aged 55 and over should consider the availability and eligibility requirements for an extension.

• Negotiations: The revised unemployment benefit periods may be relevant when discussing termination packages and transitional financial arrangements.

• International employers: Businesses with employees in France should ensure that their HR teams understand the revised rules when managing agreed employment terminations.

The reforms do not remove the right to unemployment benefits following an eligible mutual termination agreement. However, they significantly reduce the maximum period of financial support available to certain employees.

Employers and employees considering a rupture conventionnelle should therefore take the revised rules into account when negotiating and documenting employment termination arrangements.

Legal References

• Law No. 2026-470 of 11 June 2026, implementing Amendment No. 3 of 25 February 2026 to the Protocol Agreement of 10 November 2023 relating to unemployment insurance, published in the Official Journal on 12 June 2026.

• Amendment No. 2 of 10 April 2026 to the Unemployment Insurance Convention of 15 November 2024 and its associated regulations, approved by Order of 19 June 2026 (NOR: TRSD2614637A).

Aramis, France, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact france@transatlanticlaw.com

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