Unemployment Benefit Claimants Returning to Work Following a Mutual Termination Agreement

2026-07-02T00:00:00+02:00

A mutual termination settlement agreement (rupture conventionnelle individuelle – RCI) allows a permanent employment contract to be terminated under terms agreed jointly by the employee and their employer. The employee is then generally eligible for unemployment insurance. Since 2017, the number of new claims following such contract terminations has risen by around 20% to reach 370,000 in 2024.

Based on detailed administrative data, we find that those who have signed an RCI are, on average, more qualified and better educated than the broader population of unemployment benefit claimants. Given that they are better integrated into the labour market before claiming unemployment benefits, they are likely to receive benefits for longer periods of time and, on average, receive higher benefit payments. They are also more likely to receive severance pay above the statutory minimum upon the termination of their contract.

Those who have signed an RCI have a lower rate of return to work during the two years following the end of their contract than other unemployment benefit claimants (see Chart). According to an econometric model, the relatively slow return to employment is only partly explained by the comparatively more favourable benefits packages awarded to RCI signatories and their individual characteristics. The observed gap narrows somewhat over time but remains negative over a 30-month horizon.

Trésor-Info - Publications de la direction générale du Trésor - Unemployment-benefits

Unemployment Benefit Claimants Returning to Work Following a Mutual Termination Agreement