Conventional break: Everything you need to know for a supervised and serene start

La Conventional break offers an amicable way to salaried and employer to conclude their employment contract, avoiding the complexity of dismissal. Framed by article L. 1237-11 of the Labor Code, it is presented as a flexible and less conflictual solution.

This method is perfect when both parties agree on the end of the contract but struggle to agree on the terms and conditions. It requires a constructive dialogue to determine the conditions of departure, including severance pay and provisions for the end of employment.

Understand the key steps, the rules And the financial and legal implications is essential before starting this process. This article will guide you through the phases of conventional breakup, addressing practical and legal aspects.

Key steps to request a contractual break

Initiating the request

The contractual termination procedure begins with the initiation of the request, which may be issued by the employee or the employer. It is important that this request be formulated clearly and in accordance with the required formalities. The request must be written, preferably via a registered letter, explicitly stressing the desire to opt for a contractual break, with reference to article L. 1237-11 of the Labor Code.

This letter should detail the identities of the parties involved, the contact details of the company, and the start date. He is significant to note that the contractual breach must be mutually agreed and cannot be imposed. In case of disagreement, the employment contract continues as usual.

Conduct of negotiations

After submitting the request, the parties meet to discuss the terms of the breakup. This phase, which is essential, involves at least one prior meeting where the terms of the termination, such as the end date of the contract and the amount of the severance pay, are negotiated.

The employee may be accompanied by a staff representative or an advisor, and must inform the employer in advance. Negotiations should maintain the freedom of consent of both parties, by setting the date, time, and place of the interview in advance for an open and comfortable discussion.

Agreement and drafting of the agreement

Once an agreement is reached, the parties draft and sign the contractual termination agreement. This document, which must be dated and signed by both parties, contains the details of the agreement: end date of the contract, amount of the severance pay, and other specific conditions. Each party shall keep a copy of the agreement.

A contractual termination agreement is a legal document that must be drawn up with clearness and precision to prevent future misunderstandings or disputes.

Withdrawal period

After signature, a withdrawal period of 15 calendar days is granted to the parties, allowing them to reconsider their decision. The withdrawal must be made in writing, by registered letter or by hand. Without withdrawal within this period, the agreement becomes final.

During this period, it is advisable to wait before submitting the agreement for approval. After this period, the agreement must be sent to the DDETSPP or to the Dreets for validation.

Approval procedure and effects of contractual termination

Submission and approval of the agreement by the competent authority

To implement a contractual breach, it is essential to submit the signed agreement for approval to the appropriate administrative entity. This approach is decisive for the legitimacy of the breakup. After the expiry of the withdrawal period of 15 calendar days, the contractual termination agreement must be sent to the Departmental Directorate of Employment, Labor, Solidarity and Population Protection (DDETSPP) or to the Regional Directorate of Economy, Employment, Labor and Solidarity (Dreets) or to the Regional Directorate of Economy, Employment, Labor and Solidarity (Dreets) through the TéléRC tele-service.

The application for approval is made online via the Cerfa form No. 14598, specifying the expected end date of the contract, which must be set after the instruction deadline. The administration then has 15 working days to issue its decision. If the administration does not respond within this period, the contractual breach is considered validated.

In the event of refusal of approval, the decision must be justified by the administration, making the agreement void and the employment contract remains in force according to the usual procedures. The parties have the possibility of appealing to the Labor Court within 12 months following the decision.

Effects on employee rights

The approval of a contractual break has several significant consequences on the rights of the employee.

The employee is entitled to a Severance pay, whose amount may not be less than the legal minimum set by the Labour Code. This benefit is exempt from social security contributions and income tax, under certain conditions.

Conventional termination also allows access tounemployment insurance, provided that the employee meets the general eligibility criteria.

The employee will receive the documents necessary to register with Pôle Emploi, such as the employment certificate, the balance of any account, and the employer certificate for France Travail.

In addition, the conventional break preserves the duration of seniority of the employee, essential for the calculation of his future rights, in particular in the event of rehiring. However, it is essential to consider the specificities of each case, since measures such as redeployment or training can be proposed to support the employee's transition.

Indemnities and financial aspects in 2024

Calculation of severance benefits

The calculation ofCompensation for termination of contract takes into accountseniority of the employee as well as his gross remuneration. The minimum amount of this compensation is in line with that of the legal redundancy compensation, thus guaranteeing minimum protection for the employee.

In detail, for contractual breaches, the compensation is defined as follows: 1/4 of the monthly salary by year of seniority for the first 10 years, and 1/3 of the monthly salary by year of seniority starting from the 11th year. It is essential to emphasize that the parties can agree to an amount greater than this legal basis, provided that this is clearly stipulated in the contractual breakup agreement. Specific provisions may also be provided for in the collective agreement, the employment contract or professional practices, with the employee then benefiting from the most favorable method of calculation.

Tax regime and social security contributions

THECompensation for termination of contract Enjoys a preferential tax and social regime. It benefits from a partial exemption from income tax and social security contributions.

This tax exemption applies up to the lowest amount between double the gross annual remuneration of the previous year and half of the compensation paid, with a ceiling of €278,208. With regard to social security contributions, the exemption applies to the portion of the benefit that does not exceed €87,984.

Above this threshold, contributions are due on the excess. The compensation is also exempt from CSG and CRDS up to the limit of the legal severance pay or the amount exempt from social security contributions, whichever is lower. For benefits exceeding 10 times the annual Social Security ceiling (PASS), no exemption from social security contributions or CSG/CRDS is applicable. In these cases, an employer contribution of 30% is due on the portion of the benefit exempt from social security contributions, to the benefit of the National Old-Age Insurance Fund.

To remember

La Conventional break represents an advantageous alternative for both employees and employers wishing to end an employment contract for an indefinite period of time amicably.

It is essential to understand that this mechanism is based on a mutual consent and cannot be forced by either party. Important phases include initiating proceedings, negotiations, and creating a formal agreement, all punctuated by a retraction period and formal validation.

Les Compensation for termination of contract are established according to the length of service and the gross salary of the employee, taking advantage of a favorable fiscal and social framework.

This approach also facilitates eligibility for unemployment benefits while protecting the rights linked to the length of service of the employee.

In conclusion, opting for a conventional break is a solution Win-win that prevents disputes and promotes a smooth transition. If you or your employer are considering terminating an employment contract, seriously consider this option and make sure you follow the steps required for a fair contract termination that is consistent with everyone's rights.

FAQS

What are the conditions necessary for a contractual break to be valid?

A contractual break is considered valid when several conditions are met:

• It must be concluded by mutual agreement between an employer and an employee on a permanent contract, without any pressure or fraud.
• The consent of the parties must be free and informed.
• The procedure should include at least one interview between the parties.
• The breakup agreement must be written and signed by both parties, and should include the details of the breakup as well as the severance pay.
• Finally, the agreement must be approved by the DIRECCTE.

How does the procedure for approving a contractual breach take place and what is its importance?

The procedure for approving a contractual breach follows several essential steps. After the employer and the employee have signed the contractual termination agreement and respected the withdrawal period of 15 calendar days, an application for approval must be sent online via the TéléRC tele-service to the DDETSPP. The administration then has 15 working days to make its decision.

If no response is given within this period, the contractual breach is considered to be automatically approved. This certification is Essential, because it officially confirms the end of the employment contract. Without it, the agreement is void and the employment contract remains in force.

What documents and information are required to register with France Travail after a contractual breakup?

To register for France Travail following a contractual break, you will need to provide:

• The certificate of approval of the termination agreement by the DIRECCTE.
• A work certificate attesting to your employment as well as the dates of entry and exit.
• A receipt for the balance of any account.
• The France Travail certificate, necessary to benefit from unemployment rights.
• Proof of effective work of at least 6 months during the 24 months preceding the breakup.

Is there a withdrawal period after signing the contractual termination agreement, and how does it work?

Yes, a withdrawal period of 15 calendar days is provided after the signing of the contractual termination agreement. This period starts the day following the signature and ends at midnight on the 15th day. During this period, the parties may retract without having to provide any justification, by sending a letter to the other party, preferably by registered letter with acknowledgement of receipt.

If the last day of the deadline falls on a Saturday, Sunday or a public holiday, the deadline is extended to the next working day.