France: "Mutual-consent" employment contract terminations prove popular

Since its introduction in August 2008, a new procedure for terminating employment contracts by mutual consent has proved popular in France, and it accounted for 8% of all terminations of contract in 2009.

Legislation adopted in June 2008 (based on a national cross-industry agreement between the social partners) introduced a new way of terminating open-ended employment contracts by mutual consent of employee and employer, separate from resignation or dismissal.