The termination of an employment contract by a mutual cancellation agreement has the consequence that the worker is not able to benefit from the provisions relating to job security laid down in Article 18 and the related articles of the Labour Law and that he brings an action for re-employment because of these circumstances. However, a reciprocal cancellation agreement may be cancelled if the parties intend to engage corruptly in the execution of the mutual cancellation agreement or if a staff member has signed the reciprocal cancellation agreement with a reservation. In the event of ineffectiveness of reciprocal annulment agreements, an action for employment may be brought if the conditions for the application of the provisions on safety at work laid down in Article 18 of the Labour Law are met. If an employment contract is terminated for any reason, the entire unused paid annual leave must be paid to the worker, in accordance with Article 59 of the Labour Law. Note that “termination” is not a necessary condition for granting paid annual leave. An employer is obliged to make the payment of unused paid annual leave in all circumstances of termination of an employment contract, including by reciprocal cancellation agreement. In principle, statutory compensation related to the termination of an employment contract (severance pay and severance pay) does not in principle apply to valid reciprocal cancellation agreements. However, the parties may agree on another scheme for the payment of such compensation. In addition, when considering the “reasonable value” criteria, the Supreme Court ensures that compensation and additional payments are made as a valid factor for the mutual termination agreement. Employment contracts may be terminated by mutual agreement between the parties. The legal basis for mutual cancellation agreements is “freedom of contract” as a constitutional right. Employers and employees terminate an existing employment contract by a “mutual cancellation agreement”.
In recent years, individual conventional termination has become an increasingly popular method of terminating employment contracts. This procedural dismissal of contracts of indefinite duration, which is in France by the law of the 25th increased by more than 8% in 2017 and by 3.9% in 2018, with 437,700 (1) agreements concluded in 2018. . .