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Compensation for notice (dismissal, resignation...)

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

Upon termination of your contract, what are the conditions for receiving a compensation for prior notice? How much is it? We present you the information to remember.

The employer must pay compensation for the notice when the employer has decided to exempt the employee from the notice.

This compensation is provided in cases of breach of employment contracts where notice is given (dismissal, resignation, etc.).

Reminder

notice compensation replaces the salary that should have been received by the employee if he had worked during this period.

Where notice is given, the employee is entitled to a compensatory notice allowance if the employer shall not. This exemption must be at the employer's initiative.

Different cases of figures may occur:

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Exemption from notice at the initiative of the employer

Compensation is due.

Employee requested waiver of notice

Compensation shall not be not due

Serious or serious misconduct

The notice compensation is not due. There is no such notice.

Termination

Advance compensation is due in case of judicial termination.

Professional Security Agreement

Seniority less than 1 year

The notice compensation is due.

Seniority of more than 1 year and less than 3 months' notice

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

Seniority of more than 1 year and more than 3 months' notice

The notice compensation shall be payable in respect of months of notice beyond 3 months.

Dismissal for unprofessional incompetence

The notice compensation is not due.

Dismissal for professional incompetence

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

Conventional Break

The notice compensation is not due. There is no such notice.

However, procedural time.

Record of Break

The compensatory allowance shall be payable where the recognition of the breach produces the effects of a dismissal no or unjustified.

Test period break

The notice compensation is not due. In fact, there is no prior notice (we speak of "notice period").

Individual employer dies

Advance compensation is due in case of death of individual employer.

Termination without real and serious cause

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

Other

If the employer does not waive the employee's notice, the following situations arise during notice does not qualify for the notice compensation:

  • Employee Incarceration
  • Sick
  • Parental Leave

Please note

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

The amount of the Advance Pay is the full salary the employee would have received had he worked during the period of notice.

If you are used to working overtime, your employer must take this into account. This is also the case for bonuses you collect (notably, the incentive premium).

Please note

benefits in kind vehicle (if personal use and professional) or accommodation shall be kept for the duration of the notice, even if it is not executed.

Compensation may be paid in several instalments. On the occasion of the pay of each month's notice.

It may also be paid on the effective cessation of work, at one time. It is then paid at the same time as the last pay.

The notice compensation shall be combined with the following allowances:

The notice compensation shall also be cumulated with per diem paid by social security, in case of work stoppage during the period of notice granted.

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

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

The notice compensation is subject to social contributions under the same conditions as the salary.

The notice compensation is sedible and transferrable within the same limits as salary

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