France's mutual termination scheme cuts benefits for workers near age 55

The "rupture conventionnelle" is a mutually agreed termination of indefinite‑duration contracts in France, introduced by the 2008 labour‑market modernization law. It requires negotiation between employer and employee and approval by the regional labour authority (DREETS). In 2022, around 300,000 such agreements were signed, a 5 % rise on the previous year, illustrating its entrenched role in the French labour market.

From 1 April 2025, a reform aligned the senior unemployment benefit tier with the new statutory retirement age, moving the entry age from 53 to 55. Consequently, workers who end their contracts at 53 or 54 now fall under the general scheme and receive a maximum of 18 months of unemployment allowance, instead of the previous 22.5 months. Those aged 55‑56 continue to receive up to 22.5 months, and employees 57 and older can receive up to 27 months. The change has created a “hidden trap” for employees who timed a rupture conventionnelle three months before turning 55, resulting in a quarter‑time reduction in their unemployment benefits.