Negotiated departure in case of economic difficulties

Verified 31 July 2023 - Legal and Administrative Information Directorate (Prime Minister)

An employer who is experiencing economic difficulties in his company may offer one or more employees a negotiated termination of the employment contract. The employment contract is terminated without any dismissal procedure. The employer and the employee agree on the conditions for the termination of the employment contract. Is the employee receiving termination benefits? Can he claim unemployment? We'll give you the information you need to remember.

The negotiated departure of the employee, in a situation of economic difficulty in the company, constitutes a amicable breakdown an employment contract.

It requires the agreement of the employer and the employee.

The negotiated departure must not be confused with the following breakup possibilities:

Negotiated termination of the employment contract is possible in the following situations:

Call for Volunteering

After the adoption of the voluntary departure plan, the employer shall initiate a call for volunteering company staff.

No procedure is required by law.

However, this call can be made

  • or generally, by display on the premises of the company or by diffusion on the network intranet company
  • or individually.

Processing of applications

The employer review applications received. He selects candidates respecting the criteria defined in the plan.

Form of termination of employment contract

Once the employee's application has been accepted, the contract of employment is terminated by mutual agreement between the employer and the employee.

This is a amicable breach of contract . It's not a layoff or a break-up agreement.

No formalism is imposed by law. In practice, the parties enter into a written agreement to terminate describing the consequences of the break-up (severance pay, priority for re-employment, exit from the non-compete clause, etc.).

Yeah. Yeah. The employee receives severance pay. Its amount shall be at least equal to that of statutory severance pay.

This allowance shall be fixed by mutual agreement between the employer and the employee, or by a collective agreement.

The employee is also entitled to compensatory leave with pay if he has not been able to benefit from all the leave to which he was entitled at the date of termination of his contract.

Yeah. Yeah. An employee who leaves the company as part of a voluntary departure, job protection plan or a collective agreement, benefits from the re-hire priority.

The employer shall provide the following documents:

No. The employee voluntarily at the start, who has entered into an agreement to terminate his contract, cannot dispute the economic motive the breach of his employment contract.

It may also not contest the application of sequencing criteria for dismissals.

Yeah. Yeah. The employee may receive a return-to-work assistance (RWA) if it meets the conditions allowing it to benefit from it.

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