Economic redundancy: what benefits can an employee receive?
Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)
An employee dismissed for economic reasons may receive several allowances if he fulfills the conditions for them. We're doing an update on the regulations.
Yes, the employee shall receive a severance pay if it meets the conditions, including seniority, enabling him to benefit from them.
Please note
In case of employment protection plan (ESP), an additional allowance, supralegal, may be paid to the employee.
The amount of the supralegal allowance shall be fixed between the staff representatives and the employer.
Yes. In principle, the employee must make a notice. He then receives his salary normally.
It may in some cases be dispensed with to give notice.
Compensation for this notice differs according to the employee gives or fails to give notice, accepts a business security contract or a reclassification leave :
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General case
Compensation for notice varies depending on whether the employee gives notice, asks the employer not to give notice, or is exempt from notice.
The employee gives notice
The employee shall receive an allowance of notice corresponding to his usual salary.
The employee asks the employer not to give notice
If the employer agrees, the employee does not work. He don't touch compensation for notice.
The employee is exempted from notice by the employer
The employee is not working. The employer pays her a compensatory period of notice corresponding to the salary he would have received if he had worked during that period.
The employee accepts a professional security contract (CSP)
Entitlement to the notice indemnity varies according to lThe employee's seniority :
Seniority of less than 1 year
The employee receives a compensatory period of notice.
The amount of the allowance corresponds to what the employee should have received in the event of dismissal without CSP.
One year of service or more
The employee don't touch compensation for notice, since the contract is terminated at the end of the reflection period to accept the FMC.
The employer shall pay Pôle emploi the equivalent of the compensation which the employee should have received in the event of dismissal without a CSP.
If the amount of the notice exceeds 3 months of salary, the share of compensation exceeding these 3 months will be paid to the employee by the employer as soon as the end of his employment contract.
Employee accepts reclassification leave
The reclassification leave shall be taken during the period of notice. The employee is exempt from giving notice.
If the duration of the reclassification leave exceeds the duration of the notice, the end date of the notice shall be postponed until the end of the leave.
The compensation of the employee during the reclassification leave is different during the notice period and after the end of the notice period:
During the period of notice
The employer shall pay the employee one compensatory period of notice corresponding to salary he would have received if he had worked during this period.
After the end of the notice period
The employee is paid during this period a monthly allowance. Its amount shall be at least 65% the average gross remuneration for the last 12 months preceding the notification of dismissal.
Allocation cannot be less than €1,501.88, or 85% of the Smic: titleContent.
If the employee has worked part-time during a educational parental leave or fatherhood or caregiver for the last 12 months before the start of the redeployment leave, his remuneration shall be calculated on the basis of full time.
The allowance shall be exempt from social contributions. It shall, however, be subject to social security contributions (to CSG at a rate of 6.20% and CRDS at a rate of 0.5%).
Yes, the employee shall receive a Compensatory leave with pay , if he has any earned paid leave that he has could not take.
Yes, the employee shall receive a return-to-work assistance (RWA) or a occupational security allowance (ASP).
He must meet the conditions, including seniority, enabling him to benefit from them.
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Redundancy payments
Compensation for notice
Compensatory leave with pay
Reclassification Leave