Settlement agreement: the importance of drafting the waiver clause
Cass. soc., 11 March 2026, n° 24-19.136
A reminder: the settlement agreement, widely used in French employment law as an amicable means of resolving disputes, calls for particular care when drafting waiver clauses.
In the case examined, the employee, hired on 26 April 2007 and dismissed on 16 October 2017, had first brought a claim before the French employment court before entering into a settlement agreement on 1 June 2018, then withdrawing and bringing a fresh claim before the court on 27 December 2018.
The court of appeal had found the employee's new claims admissible, considering that:
the settlement agreement did not cover certain specific disputes, relating in particular to holiday pay, the annual seniority guarantee and the principle of equal treatment;
the employee was not fully aware of the rights he held in this respect at the time the settlement was entered into, having not personally been aware of the decisions handed down by the French employment court concerning another of the employer's establishments.
The French Supreme Court sets aside this reasoning, relying on the very terms of the settlement:
in it, the employee declared himself "fully satisfied in respect of his present and future rights" and "irrevocably waived any current or future proceedings or action, whether relating to the conclusion, performance or termination of the employment contract". In these circumstances, the absence of a specific mention of certain heads of claim is irrelevant.
the argument based on the employee's lack of full awareness of his rights is rejected. In the presence of a clear and general waiver, it cannot neutralize the extinguishing effect of the settlement.
a general waiver clause does bar any subsequent action with the same object, even if certain legal bases had not been explicitly contemplated at the time of signing.
In practice, drafting is decisive. A broad, structured waiver clause, explicitly built around the conclusion, performance and termination of the contract, secures the effect of the settlement. Failing that, the risk of reopening the litigation remains. Support from a lawyer, allowing each party to measure the scope of their commitment, is an essential element in this respect.
Source: French Supreme Court, 11 March 2026, appeal n° 24-19.136