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France Moves to Curb Cost of ‘Rupture Conventionnelle’ After Study Finds It Replaced Resignations

The government is seeking a higher employer contribution on these agreements to reduce unemployment‑insurance outlays.

Overview

  • A new IPP study concludes most mutual separations have displaced resignations, with total resignations down 19% between 2003–2006 and 2012–2014.
  • Researchers report that 80–95% of signatories receive unemployment benefits and about 80% are still looking for work 20 days later, indicating limited job‑to‑job moves.
  • Citing roughly €10 billion per year in costs, the government has proposed raising the employer levy on these agreements from 30% to 40% during budget debates in the National Assembly.
  • Unédic says these separations now account for 28% of unemployment‑insurance spending by reason for contract termination, with executives overrepresented because fixed‑term contracts are excluded.
  • Use of the scheme reached about 515,000 people in 2024, and the IPP finds it converted only around 12% of dismissals for personal reasons, as labor authorities press social partners to address the issue.