France unemployment benefit reforms for mutual terminations

New regulations regarding 'rupture conventionnelle' (mutual termination agreements) in France will take effect on September 1, 2026, leading to a reduction in the maximum duration of unemployment benefits for affected employees.

For employees under 55 in mainland France, the maximum duration of benefits will decrease from 18 to 15 months. For those aged 55 and over, the duration will be set at 20.5 months. In overseas territories (excluding Mayotte), the duration for those under 55 will drop to 20 months, while those 55 and older will receive 30 months.

The application of these rules is determined by the effective end date of the employment contract rather than the date the agreement is signed. These changes specifically target mutual terminations and do not affect benefits resulting from dismissals. To assist the approximately 515,000 employees who utilize this method of separation annually, the firm Orientaction has launched a free online simulator to help workers estimate their financial impact, including severance amounts and potential waiting periods for benefit payments.