I am considering a mutual agreement with the employer: what …

Overwork, bad relationship with the hierarchy… Whatever your reasons, leave your company in the frame From traditional single termination Equip. Weigh the pros and cons even if many people around you have ended their careers this way. Since the introduction of this pattern of open contract terminations (CDIs) in 2008, more than 4.6 million traditional terminations have been signed, steadily growing to reach more than 450,000 in 2021. The numbers show the evolution of this situation Dismissal by mutual agreement between the employer and the employee. However, it is not enough to “up there”! The traditional break is highly framed and doesn’t happen overnight: It takes about a month and a half.”Warn Ana Perez Insart, a lawyer in Paris, expert in labor and criminal law.

How do I make my employer understand that I want to sign my contract termination?

“You have to bear in mind that, For the employer, contract termination has a cost, Since he has to pay the specified termination indemnity, he refers to the attorney. Moreover, If he has no reason to give up on you, he might tell himself that you should just quit. For him to accept, he must have an interest in doing so.” That would be If you have any shortcomings to point out, which could make your employer fear litigation. “For his part, the latter may have an interest in accepting a conventional break when he has some element of censure which is not sufficient to justify dismissal,” identifies Anna Pérez-Insert. Actually, The traditional termination initiative can come from both the employee and the employer.

If the employer accepts the termination of the contract, is it possible to negotiate compensation?

The labor law states that terminating a contract entitles you to Specific severance pay, which must be at least equal to statutory severance pay. she sometimes higher When traditional severance pay is more appropriate than statutory compensation. “To get more, there must be elements that allow you to go to litigation, The lawyer notes. In this case, you can make the employer understand that it is in their best interest to negotiate. You can, for example, ask for the equivalent of compensation in lieu of notice, or even more if you justify the damage.

Read also: Retirement: the financial consequences of unemployment on your pension

Do I have the right to notice?

no, Once the traditional termination request is approved By the Regional Directorate for Economics, Employment, Labor and Solidarity (DREETS, formerly DIRECCTE), the employment contract can be terminated As soon as the day following the day of notification of acceptance or, in the event of silence on the part of DREETS, after the expiration of the instruction period following receipt of the application. nothing The Labor Code did not provide for any notice. But, Nothing prevents the parties from giving notice or paying compensation in lieu of notice by mutual agreement.

If my employer agrees to the termination request, can I reconsider my decision?

yes, The procedure allows the parties to take the time to think. After an interview to discuss the principle of termination, or even its terms, the employer and employee complete and sign the CERVA form. From the day following this signature, it opens Withdrawal period of 15 calendar days, during which you are entitled to withdraw. The same for your employer. However, it is a safe bet that the trust relationship is damaged This will to break.

And if you insist on my request for mutual agreement?

If either of you does not reconsider your decision within this 15-day period, You or the employer must send a signed CERVA form to terminate the contract in Dritz. then opens Teaching period of 15 working days (i.e. every day except Sundays and public holidays) from the day following the business day following receipt of the application for approval or rejection of the application for termination. His silence deserves a tacit admission decision (except for protected personnel). “It is also possible to ask DREETS to send a certificate of approval,” Anaë Perez-Ainciart specifies. In the event of refusal of consent, the employment contract shall continue.

Read: Stop working before you retire? What are the financial consequences?

What items are screened for a conventional break to be approved?

Before your traditional termination request is approved, DREETS verifies that there is no defect in consent To ensure the free consent of the parties and to check the compliance of the procedures followed (the amount of specified termination compensation, the period of withdrawal, the envisaged date of termination, etc.). If the labor law leaves the parties the freedom to plan the number of interviewsIt is recommended to schedule at least two interviews To secure the procedure”, advises the lawyer. Compliance with formalities is also checked. Thus, Each party has the right to obtain assistance during the interview, provided that it informs the other party in advance. Likewise, in the Cerva tray, it should appear Last 12 months of salary the average of the last 12 months or the last 3 months, The most appropriate amount retained for the specified termination indemnity account. DREETS checks for the most appropriate average retention. It also ensures that the amount of compensation is at least consistent with the statutory termination indemnity.

Do I have to pay social contributions and income tax on termination indemnity?

It all depends on your age and therefore your right to benefit from Retirement from a legally compulsory system. Termination of the contract is more interesting if you do not reach the legal retirement age retirement (i.e. 62 years for people born since 1955). In this case, he benefits from the specified termination indemnity Exemption provided for end of service gratuity (provided that it does not exceed 10 times the social security ceiling, Your compensation is partially exempt from Social Security contributions for the non-taxable portion : do not pay within the two annual Social Security (PASS) ceilings, i.e. €82,272 in 2022). It is also exempt from CSG and CRDS within the limits of statutory compensation from the chapter. finally, Exempt from income tax within a maximum between twice the amount of the total annual bonus, or 50% of the compensation received, within 6 PASS, or the amount of compensation for statutory or contractual dismissal.

On the other side, If you sign a conventional termination while you are entitled to a pension liquidation (basic diet), Full termination indemnity is subject to taxes, social contributions, and CSG-CRDS. If you are on the initiative of this estrangementSo it is best to do this before retirement age.

Also Read: How Many Quarters Does Retirement Take?

For an employer, is signing a termination penalty if you reach the legal retirement age?

not nessacary. In fact, before this age, he must pay a 20% social lump sum on the social contributions exempt portion of his severance pay. This is no longer the case if you can take advantage of the retirement pension. On the other hand, he must always pay the employer’s share of contributions and social costs on compensation.

Does a traditional termination entitle me to receive unemployment benefits, even near or beyond legal retirement age?

The traditional termination entitles you to compensation from the Pôle emploi under the same terms as if you had become redundant, or after a working period of not less than 6 months. However, a waiting period is imposed: 7 days minimum, to be added waiting period Which varies according to the amount of your termination compensation, within 5 months. of statutory retirement age, if you do not have the number of quarters to benefit from a full pension, Your unemployment benefits continue You will be paid until the required number of conditions are accumulated.

Read: Unemployment after fifty: compensation rules

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