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Compensation for notice (dismissal, resignation...)

Verified 05 September 2022 - Directorate for Legal and Administrative Information (Prime Minister)

Upon termination of your contract, what are the conditions for receiving compensation for notice? How much is it? We'll give you the information you need to remember.

The employer must pay compensation in lieu of notice when it has decided on its own to exempt the employee from the notice period.

This compensation takes place in cases of breach of contract of employment where notice is provided (dismissal, resignation...).

Reminder

the compensation for notice replaces the salary which the employee would have received had he worked during that period.

Where notice is given, the employee shall be entitled to compensation in lieu of notice if the employer shall exempt him from carrying it out. This exemption must be at the initiative of the employer.

Various scenarios may arise:

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Waiver of notice at the initiative of the employer

The compensatory allowance is due.

Waiver of notice requested by the employee

The compensatory allowance shall not be pitch due.

Serious or gross misconduct

The compensation for notice is not due. There is no such thing as notice.

Judicial Termination

The compensatory period of notice shall be payable in the event of judicial termination.

Enterprise Security Agreement

Seniority of less than 1 year

The compensatory period of notice shall be due.

Seniority over 1 year and notice under 3 months

The compensation for notice is not due. Indeed, it is paid in Pôle emploi.

Seniority over 1 year and notice over 3 months

The compensatory period of notice shall be due in respect of months of notice beyond three months.

Dismissal for incapacity of non-professional origin

The compensation for notice is not due.

Dismissal for unfitness for work

The compensation for notice is not due. However, you must be paid an equal amount of compensation.

Conventional breakage

The compensation for notice is not due. There is no such thing as notice.

There are, however, procedural time-limits.

Acknowledgement of rupture

The compensatory allowance shall be payable where acknowledgement of rupture produces the effects of dismissal void or unjustified.

Breaking of the trial period

The compensation for notice is not due. There is no such thing as advance notice (this is referred to as "notice period").

Death of the individual employer

The compensatory period of notice shall be payable in the event of death of the individual employer.

Dismissal without real and serious cause

In the case of dismissal without real and serious cause, the compensation for notice is due, even if the employee was on sick leave during the notice.

Other

If the employer does not exempt the employee from giving notice, the following situations arise during the notice period shall not be entitled to compensation on notice:

  • Incarceration of employee
  • Sick leave
  • Parental Leave

Please note

A collective agreement (branch, company, etc.) may contain other provisions.

The amount of the compensation for notice corresponds to the full salary that the employee would have received if he had worked during the notice period.

If you are used to working overtime, your employer should take this into account. This is also the case for premiums you receive (notably, profit-sharing premium).

Please note

vehicle benefits in kind (if for personal use and professional) or accommodation shall be retained throughout the period of notice, even if it has not been carried out.

The compensation may be paid in several installments. On the occasion of the payroll of each month of notice.

It may also be paid on actual termination of work, in one installment. It is then paid at the same time as the last pay.

The notice compensation shall be combined with the following allowances:

The compensation for notice shall also be combined with the daily allowances paid by social security in the event of a work stoppage during the period of notice given.

Yes, the notice compensation is stacked with the salary of a new job.

The compensation for notice is subject to income tax under the same conditions as salary.

The compensatory period of notice shall be subject to social contributions under the same conditions as pay.

The compensation for notice shall be graspable and transferable within the same limits as salary

Who can help me?

Find who can answer your questions in your region

  • Telephone administrative information - Allo Public Service

    The informants who answer you belong to the ministry responsible for labor.

    Cost: free service

    Attention: the service does not respond questions relating to unemployment compensation and representations to Pôle emploi, civil servants or public service contractors, the amount or payment of social, wage or employer contributions.

    The service is available at the following times:

    • Monday: 8.30am to 5.30pm
    • Tuesday: 8:30 to 12:15
    • Wednesday: 8:30 to 12:15
    • Thursday: 8.30am to 5.30pm
    • Friday: 1 p.m. to 4:15 p.m

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