Conventional termination is a procedure which allows the employer and the employee to end the employment contract by mutual agreement. This option offers advantages for both parties, in particular the possibility for the employee to benefit from unemployment benefits under certain conditions. Let us examine in detail the rights and compensation linked to this situation.
Understanding the contractual termination and its implications
Conventional termination is a system that only applies to permanent contracts (CDI). It allows an amicable separation between the employer and the employee, without the constraints of dismissal or resignation. This procedure gives entitlement to unemployment benefits, provided that certain criteria are met.
To benefit from this system, several steps must be followed:
- Negotiation between the parties
- Drafting a termination agreement
- A withdrawal period of 15 calendar days
- Approval by the labor administration (DDETSPP)
It is important to note that the employee can be assisted during negotiation talks. This assistance can be valuable to ensure that their rights are respected and that the conditions of the breakup are fair.
Unlike other forms of termination of the employment contract, conventional termination does not require a seniority condition to benefit from the associated compensation. This makes it an attractive option for employees, regardless of the length of their employment with the company.
Conditions and procedures for receiving unemployment benefits
To claim unemployment benefits after a conventional termination, several conditions must be met:
- Register with France Travail (formerly Pôle Emploi)
- Proof of a sufficient period of work:
- At least 6 months (130 days or 910 hours) in the last 24 months
- For those over 53, this period is extended to 36 months
- Respect the actions defined with the France Travail advisor
- Not having reached the legal retirement age
Once these conditions are met, the benefit of the allowances is not immediate. A waiting period applies, composed of several elements:
| Delay type | Duration |
|---|---|
| Incompressible deadline | 7 days |
| Delay linked to supra-legal compensation | Variable (capped at 150 days) |
| Delay linked to unused paid leave | Maximum 30 days |
This waiting period makes it possible to avoid accumulation of termination benefits and unemployment benefits. It is calculated based on the amounts received at the time of termination of the contract.
Conventional termination compensation: amount and taxation
The contractual termination indemnity is a key element of the negotiation between the employer and the employee. Its amount cannot be less than the legal severance pay., but may be higher depending on the agreement reached between the parties.
Several important aspects must be considered regarding this compensation:
- The amount is freely negotiated, within the limit of the legal minimum
- Part may be exempt from income tax
- A fraction may be exempt from social contributions and CSG/CRDS
The taxation applicable to conventional termination compensation is complex and depends on several factors, in particular the total amount received and the employee’s reference salary. It is recommended to consult an accountant or tax advisor to understand the precise tax implications. of the compensation received.
For the employer, it is relevant to note that a specific employer contribution may apply to part of the compensation paid, depending on its amount and the characteristics of the employee concerned.
Specificities of collective contractual termination
It is essential to distinguish individual contractual termination from collective conventional termination. The latter obeys specific rules and falls within a different framework:
- It concerns several employees simultaneously
- It is part of a process of reorganization or restructuring of the company
- It requires the establishment of a collective agreement
- The compensation conditions may differ from those of an individual conventional termination
Collective contractual termination should not be confused with a job protection plan (PSE). It offers a more flexible alternative for companies wishing to reduce their workforce without resorting to economic layoffs.
For employees affected by a collective contractual termination, it is important to fully understand the terms of the collective agreement and its implications in terms of unemployment rights and compensation. Support from staff representatives or a specialist lawyer can prove valuable in these complex situations.
Finally, the conventional termination, whether individual or collective, offers appreciable flexibility for both employers and employees. It allows for an amicable separation while preserving the employee’s rights to unemployment benefits. However, its implementation requires particular attention to legal, fiscal and social aspects to ensure that everyone’s interests are preserved.