The Legal Framework and Principle of Negotiated Termination in the Civil Service
The negotiated termination mechanism in the civil service is a major innovation introduced by Article 72 of Law No. 2019-828 of August 6, 2019, concerning the transformation of the civil service. This experimental mechanism allows a civil servant and their administration to mutually agree to end their professional relationship. It is available in all three branches of the civil service: the national, regional, and hospital civil services. However, it is an experiment for civil servants, which will end on December 31, 2025, while for contract employees hired on permanent contracts, it is a permanent arrangement. Negotiated termination is characterized by its mutually agreed origin. Unlike resignation or dismissal, this agreement cannot be imposed by either the administration or the civil servant. This principle is crucial in the public sector, where the employment relationship is often governed by rigid statutory frameworks. The negotiated termination agreement thus allows for a new flexibility, inspired by private law rules, but adapted to the specific characteristics of public service.
In practice, this procedure has different consequences depending on the employee’s status: for a civil servant, the termination results in removal from the civil service rolls, which implies a permanent loss of civil servant status. For employees on permanent contracts, the agreement marks the end of their employment contract. As for state workers affiliated with the pension scheme for workers in state industrial establishments (FSPOEIE) and hospital practitioners on permanent contracts, the negotiated termination also allows for a definitive cessation of activity. This diversity illustrates the administrative and legal complexity of this type of termination, which seeks to combine flexibility and legal certainty for the parties involved.
For example, let’s imagine the case of Amélie, a local government employee for 15 years, who wants to retrain in the private sector. Before the introduction of this system, she would have been forced either to resign, thus losing her unemployment benefits, or to attempt early retirement. The negotiated termination agreement now offers civil servants a solution, including compensation and the possibility of receiving unemployment benefits (ARE), comparable to those available to private sector employees. This procedure is governed by numerous regulations: in addition to the 2019 law, several decrees from late 2019 specify the implementation details, notably Decree No. 2019-1593 of December 31, 2019, on the procedure itself, and Decree No. 2019-1596 on the specific compensation. These rules guarantee both respect for the employee’s rights and transparency in the process, particularly through the establishment of a standardized agreement template.
Discover everything you need to know about negotiated termination agreements in the civil service: conditions, procedures, and advantages for a smooth departure.
Negotiated termination in the civil service is available to several categories of staff, but it is not universal. Both tenured civil servants and permanent contract employees are eligible for this mechanism, as well as certain specific profiles such as state workers and hospital practitioners on permanent contracts. However, significant exclusions exist to strictly regulate this mechanism.
Those excluded from the mechanism include, in particular, probationary civil servants. Indeed, these employees are in a probationary period and their situation does not allow for an amicable termination due to their civil service integration contract. Similarly, civil servants who have reached the legal retirement age with the required number of quarters for a full pension cannot use negotiated termination, as this situation does not justify early retirement.
Furthermore, some employees on secondment to another contractual position are also excluded, since they already benefit from specific management arrangements related to this hybrid status. For contract employees, there are also restrictions: only those with permanent contracts are eligible, thus excluding those on fixed-term contracts. Furthermore, contract employees on probation or undergoing disciplinary proceedings (dismissal) cannot use a negotiated termination agreement, as this presupposes mutual and amicable consent.
In practice, this means, for example, that a newly hired local government contract employee on a fixed-term contract will not be able to initiate a negotiated termination during this temporary period. By comparison, a contract employee who has been in their position for several years on a permanent contract will be able to freely negotiate this termination with their administration.
This distinction is essential to preserve team stability and prevent misuse of this mechanism, which could otherwise be used to circumvent disciplinary procedures or contract renewal rules. It therefore reflects a desire for a balance between flexibility and the protection of public employees.
Finally, to illustrate this inaccessibility, we can consider the case of Julien, a 63-year-old civil servant with the necessary quarters for a full pension. Overwhelmed by the uncertainty of wanting to leave his job, he will not be able to benefit from a negotiated termination, having to resort to a standard termination of employment or resignation. This constraint prompts reflection on the relevance of a mechanism even more precisely targeted to specific employee profiles.
Key Stages of the Negotiated Termination Procedure in the Civil Service
The negotiated termination procedure is marked by several rigorous stages designed to guarantee clarity and freedom for each party. It all begins with an initiative, which can come from either the civil servant or the administration. This process of mutual agreement can in no case be imposed unilaterally.
To initiate the request, the individual sends a registered letter with acknowledgment of receipt or delivers a letter in person against signature to the other party. If the civil servant is seconded or assigned to another administration, the request must be addressed to their original administration, which holds the power of appointment, while also informing the receiving administration. This detail ensures that the legal administrative framework is respected. Within ten clear days to one month of receiving the request, the administration organizes a meeting. This meeting is a crucial discussion, during which the employee may be accompanied by a union representative of their choice if they so wish. Several points are addressed during this meeting: the reasons for the termination, the final date of cessation of duties or end of the contract, the amount of potential compensation, and the practical consequences of the termination. The example of Sophie, a contract employee at a public hospital, clearly illustrates this process. She requested a negotiated termination in order to join the private sector. During the meeting, she was accompanied by a union representative, which allowed her to obtain precise information on the calculation of the severance pay and her unemployment benefits. This exchange is essential for the employee to make an informed decision.
Once the terms are negotiated, the parties agree on the termination agreement, drafted according to a specific regulatory template. This agreement formalizes, in particular, the amount of the specific severance pay, calculated according to precise rules based on seniority and salary, as well as the termination date of the employment relationship. The agreement must be signed at least fifteen clear days after the final meeting, thus ensuring a period of reflection.
After signing, each party has a 15-day cooling-off period, beginning one full day after the signing date. This right allows either party to withdraw from the agreement without providing a reason. Exercising this right requires formal notification by registered letter or hand delivery against signature.
If neither party withdraws from the agreement within this period, the termination becomes final on the date specified in the agreement. At that time, the civil servant is removed from the civil service rolls and the contract employee’s employment contract ends. This exemplary procedure guarantees legal certainty and a balance between the parties.
Calculation and Payment Terms of the Specific Termination Indemnity (ISRC)
The Specific Termination Indemnity (ISRC) is a central element of this system. It aims to compensate the employee for the loss of employment and to facilitate a transition to a new professional future. Its calculation is based primarily on two criteria: the public employee’s seniority and their gross reference salary.
- The annual gross reference salary corresponds to that received by the employee during the calendar year preceding the termination. However, certain elements of this remuneration are excluded from the calculation, ensuring a fair basis:
- Expense reimbursements, which do not constitute actual income.
- Overseas assignment allowances.
- Residence allowances when paid abroad.
- Bonuses related to exceptional circumstances such as geographical relocation or restructuring.
Teaching allowances, jury fees, or other bonuses not directly related to employment.
Regarding seniority, the actual length of service completed across the three branches of the civil service is used. This clarification prevents fraud and ensures a fair and transparent calculation.
The minimum amount of this allowance is calculated according to a sliding scale:
For the first 10 years, 25% of one month’s gross salary per year of service; then, 40% per year between ten and fifteen years; 50% between fifteen and twenty years; and finally, 60% between twenty and twenty-four years of service.
Conversely, the total payment cannot exceed one-twelfth of the annual gross salary multiplied by the number of years of service, up to a maximum of 24 years. This limitation protects public finances and controls the amounts to be paid.
It is important to note that the ISRC payment is made in a single lump sum and is final. Once the severance payment is made, the employee is also eligible for unemployment benefits, subject to any existing entitlements. This severance payment may, in some cases, be partially exempt from income tax and social security contributions, although tax regulations must be verified on a case-by-case basis.
For example, an employee with 18 years of service and a gross annual salary of €30,000 will benefit from a combined calculation according to these rules, with severance pay falling between the regulatory minimum and maximum amounts. This mechanism encourages the employee to view this termination as a career opportunity rather than a punishment.
Consequences and obligations related to negotiated termination in the civil service
A negotiated termination agreement has significant consequences for civil servants, impacting their career, social rights, and certain future obligations. Firstly, it results in the loss of civil servant status for tenured employees, formalized by their removal from the civil service register. This termination is official and eliminates all rights associated with civil servant status.
For contract employees, the contract ends, and their registration in the administrative workforce also ceases. This termination ends the contractual relationship without recourse to disciplinary or legal proceedings, which can be advantageous in terms of peace of mind.
A crucial point concerns unemployment benefit entitlements. Employees leaving the civil service through a negotiated termination agreement are entitled to unemployment benefits (ARE) from the general scheme, provided they meet the usual conditions. These periods of compensation are also taken into account for retirement under the general scheme, which can be a decisive advantage for employees considering a career transition. However, entitlement to a substantial severance payment is subject to a specific condition: if the employee is rehired in the civil service within six years of the termination, they must fully reimburse the Treasury for this severance payment within two years of their rehire. This provision aims to prevent abuse and ensure a financial balance between employees and the administration.