Fifteen years after its entry into French law, is conventional breach undergoing a revolution? This method of breaking the employment contract will cost the employer more from September 1, a consequence of the entry into force of the pension reform.
Severance pay is subject to a social package of 20%, payable by the employer. This lump sum is replaced by an employer contribution of 30% as of September 1. By this measure, the executive wants to boost the employment of seniors and avoid conventional ruptures signed as early retirement.
Will all ruptures be affected?
Except that the reform will affect all contractual terminations, regardless of the employee’s situation with regard to retirement. It remains to be seen which contractual ruptures will be affected: the ruptures signed from September 1, those which will be the subject of an application for approval on this date, or even the ruptures whose “effectiveness” is scheduled for September 1, recalls a lawyer interviewed by Dafmag. In France, in the first quarter, 128,500 conventional terminations were signed, according to Ministry of Labor figures.