The TEC allows the employee to accumulate paid leave entitlements or to receive remuneration, whether immediate or deferred, in return for leave or rest periods not taken or sums allocated to them.

The establishment of a TEC in the company is not mandatory. When it is put in place, the terms of the TEC shall be laid down by company or establishment agreement or agreement (or, failing that, by agreement or branch agreement).

The employee is not obliged to use it. It allocates rights to it if it so wishes.

The employee may, at his own discretion, allocate rights to his TEC arising from:

• of the 5^e vacation week,
• additional leave for splitting or from conventional entitlements,
• rest periods not taken (e.g. RTT days),
• miscellaneous remuneration (examples: seniority premium, 13th month).

The employer may allocate to the TEC the hours worked beyond the collective duration (e.g. overtime) by the employee.

These rights shall be allocated to the TEC under conditions and limits laid down in the Convention or the Agreement.

The conditions of use of the TEC are freely defined by the Convention or the Agreement.

The employee may, at his request and in agreement with his employer, use his CET to supplement his remuneration or to gradually cease his activity.

Days of vacation can be converted as a compensation supplement if the employee has assigned days of vacation beyond the 5 weeks of vacation.

The employee can use the sums from his TEC to feed his Retirement Savings Plan (RIP).

Rights acquired under a TEC are insured against the risk of non-payment (such as wages) in the event of the company being put into receivership or wound up by the courts. Fees are provided up to €92,736 per employee.

If the employee has acquired rights greater than €92,736, the agreement must provide for an insurance or financial security scheme to cover rights acquired in excess of that amount. If not yet provided for, the employee shall receive an allowance corresponding to the monetary conversion of these entitlements.

An employee who leaves the company (regardless of the reason for the termination of the employment contract) may transfer his rights with another employer, if the Convention or Agreement so provides.

Alternatively, an employee who leaves the company may request the consignment of its rights with the Caisse des Dépôts et Consignations (CDC) in the absence of an agreement laying down the conditions for the transfer of rights. The rights recorded with the CDC can then be released at any time, by the payment of all or part of the amounts recorded, at the request of the beneficiary employee or his successors in title. The entitlements recorded may also be released at the request of the beneficiary employee, by the transfer of all or part of the sums recorded on the TEC or by a salary savings plan put in place by a new employer.