End-of-career leave is not mentioned in any article of the French Labour Code. This arrangement exists solely through a collective agreement or a unilateral decision by the employer, which sets it apart from phased retirement, which is governed by law. Understanding this difference helps clarify what each option actually guarantees employees and what it leaves open to negotiation.
Contractual end-of-career leave and statutory phased retirement: comparison table
| Criterion | End-of-career leave (company agreement) | Phased retirement (statutory scheme) |
|---|---|---|
| Legal basis | Collective agreement, industry-wide agreement or unilateral decision by the employer | French Social Security Code |
| Work during the scheme | Employment contract suspended; complete exemption from work | Mandatory move to part-time work; employment continues |
| Pay | Varies according to the agreement (often around 70% of gross salary) | Part-time salary + a portion of the retirement pension |
| Retirement contributions | Contributions may be made on a full-time basis if the agreement provides for it | Contributions based on part-time salary (additional contributions may be possible) |
| Health and income protection cover | Continues if stipulated in the agreement | Continues under the part-time employment contract |
| Employee entitlement | No enforceable right: the employer may refuse or withdraw the scheme | Right available as soon as the statutory conditions are met |
This table highlights a fundamental difference. Phased retirement is an individual right established by law, available subject to age and qualifying-period conditions. End-of-career leave, by contrast, depends entirely on the framework negotiated within the company.
An article detailing the rules governing end-of-career leave under French employment law can help you check the conditions set out in each agreement before taking any steps.
Eligibility for end-of-career leave: what the company agreement determines
Since no law establishes a uniform framework, eligibility criteria vary from one employer to another. For example, Société Générale’s agreement makes the scheme available to employees who are three years away from drawing their full-rate French Social Security pension. Other companies set different thresholds based on length of service or proximity to retirement.
The agreement generally defines the following:
- The number of years remaining until the employee qualifies for a full-rate pension, often checked using the career statement available on the Assurance retraite website
- The minimum length of service with the company, which determines eligibility and sometimes the level of pay maintained
- The application process: a letter submitted to the manager, forwarded to the HR administrator, then reviewed by a selection committee, which may take up to four months to reach a decision
- The exit arrangements, since employees are generally required to draw their pension at the end of the leave
The absence of an enforceable right is the key point. A selection committee may reject an application, and the employee has no equivalent right of appeal to the one available under phased retirement. The employer is not required by law to give a reason for refusing, unlike when refusing a move to part-time work under the statutory scheme.
Pay and retirement contributions during end-of-career leave
Pay maintained during end-of-career leave varies from one agreement to another. The documented example of Société Générale provides for 70% of contractual gross annual pay, paid in twelve monthly instalments. This rate is not universal: some agreements set a higher percentage, while others make the amount dependent on length of service.
Retirement contributions deserve particular attention. During phased retirement, employees contribute based on their part-time salary, with the option of requesting additional contributions to limit the impact on their future pension. During end-of-career leave, the arrangements depend entirely on the agreement.
At Société Générale, the agreement allows contributions to the basic state pension scheme to be made on a full-time basis, as well as contributions to the AGIRC-ARRCO supplementary pension scheme, with the employer covering the employer contributions. This arrangement protects the employee’s qualifying periods and preserves the calculation of their pension.
Not all agreements offer the same level of protection. If an agreement does not provide for this coverage, the employee’s qualifying periods will be calculated based on the pay actually received during the leave. This may reduce the pension amount if the maintained salary is too low to accrue four qualifying quarters per year.
Time savings account and end-of-career leave: an additional option
A time savings account (CET) offers another way to manage the end of a career. Unused rest days or leave days saved in the account can fund a period of leave before retirement, with full pay maintained for the duration covered by the accrued entitlement.
The difference between this and contractual end-of-career leave lies in the source of funding. A CET draws on entitlements earned by the employee, whereas contractual leave is funded by the company. The two schemes can be combined: an employee might first use their CET to leave a few months early, then move on to the end-of-career leave provided for in the collective agreement.
Social benefits (income protection, supplementary health insurance, social and economic committee) remain in place while the CET is being used, since the employment contract remains in force.
Retirement lump sum after end-of-career leave
End-of-career leave ends when the employee draws their pension. They then receive the voluntary retirement allowance provided for by the collective agreement or, failing that, by the French Labour Code. The amount depends on total length of service with the company, including the leave period if the agreement so provides.
Calculating the reference salary for the allowance can raise questions when pay has been reduced during the leave. The company agreement generally specifies whether the calculation is based on salary before the leave or on the pay maintained while the employment contract is suspended. This is worth checking before signing anything.
End-of-career leave remains a negotiated arrangement, and the protections it offers vary from one agreement to another. Employees considering this option should compare the exact terms of their company agreement with the rights available under statutory phased retirement, particularly regarding qualifying periods and the calculation of their final pension.
