It is necessary to restart the entire procedure when a mutual termination agreement (‘MTA’) is modified following a refusal of approval.
On October 16, 2024, the French Supreme Court issued an important ruling regarding the procedure for an approved mutual termination agreement. In this case, a MTA signed on November 24, 2015, was refused by the administration on December 29, 2015. The employer then modified the agreement by slightly increasing the termination indemnity and postponing the termination date, without informing the employee. The employer subsequently submitted this revised version to the administration, which endorsed it on January 8, 2016.
The employee challenged this approval, arguing that he had not been informed of the modifications of the MTA and had not been given a new withdrawal period. The French Supreme Court overturned the decision of the court of appeal, which had rejected the employee’s claim, emphasizing that any modification of the agreement after a refusal of approval requires restarting the entire procedure, including respecting a new 15-day withdrawal period.
This ruling highlights the importance of strictly adhering to the formalities prescribed by the Labor Code when concluding a MTA, especially in cases of modifications following a refusal of approval. Employees must be informed of any changes and be given a new withdrawal period to ensure the validity of the agreement.
- Cass. soc. 16-10-2024 nº 23-15.752 F-D 5.