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How can you negotiate your dismissal out of court and prepare to start your own business?

Also known as "rupture conventionnelle", amicable dismissal is a procedure that lies between resignation and dismissal. It consists in negotiating an amicable termination of a permanent contract between the employee and his employer. If you wish to leave your job and set up your own business, you'll need to prepare for your departure. SeDomicilier.fr explains what you need to know about amicable dismissal.
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Updated September 1, 2023
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How do I apply for a "rupture conventionnelle"?

The contractual termination of your employment contract can be negotiated with your employer without you needing to give any particular reason. You can, however, put forward the existence of your business creation project.

There are many advantages to laying your cards on the table with your employer if you want to successfully negotiate the termination of your contract. Prepare good arguments to tip the balance in your favor when it comes to amicable dismissal. If you are an employee who is appreciated by the company's staff and wish to devote yourself to a project that seems close to your heart, your employer may be sensitive to this.

You and your employer can then get together for one or more meetings to reach agreement on the principle of amicable dismissal in return for severance pay. If necessary, ask another member of staff or an advisor to help you negotiate the terms of your departure.

As soon as you have reached an agreement on your departure from the company, fill in an amicable termination agreement. The main information to be included in this agreement is the amount of the severance pay. This amount must not be less than the sum you would have received if you had been dismissed in the normal way.
 

What assistance is available for business start-ups following amicable dismissal?

As soon as theagreement to terminate your permanent employment contract has been reached, you are officially unemployed and eligible for unemployment benefit. Amiable redundancy offers a number of advantages, not least of which is the possibility of receiving unemployment benefit under certain conditions. These benefits are known as allocations de retour à l'emploi (ARE).

To take advantage of these benefits, you need to register with Pôle Emploi. The duration of compensation may vary according to the periods of employment following the end of your employment contract.

You can also benefit from the "Aide à la Création ou à la Reprise d'Entreprise" (ACRE), a partial exemption from social security contributions. This exemption is valid for a maximum of one year.

You may also be eligible for the Nouvel Accompagnement à la Création et à la Reprise d'Entreprise (Nacre) program, which runs for a minimum of three years. It is open to all employees who have opted for a conventional termination of their employment contract. It offers assistance in setting up a business, as well as help with financing.

  • The amount of unemployment benefit is calculated on the basis of the gross remuneration received by the employee during the 12 months prior to termination of the employment contract.
  • The maximum duration of compensation is 24 months, but may be reduced depending on the employee's age and length of affiliation to the unemployment insurance scheme.

 

How to prepare your business start-up?

Start by putting together a business plan tailored to your skills and experience. If you've never set up or helped to set up a business before, your Pôle emploi advisor may suggest a training course reserved for entrepreneurs. This will enable you to learn about administrative and legal formalities, some basic accounting concepts and the procedure for paying taxes on your business.

Put together a good project team with people who have the skills needed to implement the company's project. When it comes to creating an SCI (société civile immobilière) or any other type of business, the success of the project depends on the team put together for the purpose. You also need to have a well-established financing plan to see your business start-up project through to fruition. Once all these points have been taken care of, you can move on to the actual creation of the company.

Written by our expert Editorial staff
June 20, 2023

What restrictions are there on setting up a business prior to amicable dismissal?

You can set up your own business before you are amicably dismissed. However, your procedure must comply with certain provisions of the law and your employment contract.

  • The exclusivity clause

    1. The exclusivity clause

    The exclusivity clause refers to article 1222-1 of the French Labor Code, which prohibits an employee from engaging in any other professional activity. However, it does not apply to employees setting up a new business for a period of one year. At the end of this period, the employee must either terminate his or her activity, or initiate the procedure for the conventional termination of his or her employment contract.

  • The non-competition clause

    2. The non-competition clause

    When the employment contract includes a non-competition clause, the employee must not put himself at fault by setting up a competing business or working for competitors. This clause is valid for a specific duration and geographical area, even when the employee leaves his or her job.

  • The duty of loyalty

    3. The duty of loyalty

    When an employee plans to set up his own business, he must undertake to be loyal to his employer. In practice, this means performing the employment contract in good faith, and not doing anything that could harm the company's business.

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Frequently asked questions

Setting up a business: what other solutions are there?
Chevron
You can ask your employer for time off to devote to setting up your own business. With this solution, you can easily return to your job in the company if your project doesn't go well. You can also switch to part-time work on your employment contract. You'll be able to work on your business creation project and be an employee of your employer at the same time. Your salary will be proportional to the number of hours you work.
What should you do if your employer is against the conventional termination of your employment contract?
Chevron
If you fail to reach an agreement with your employer, your only option is to resign. Unfortunately, this procedure does not entitle you to unemployment benefit in most cases. There are exceptions, however. You may even be entitled to ARE under certain conditions. Resignation requires a notice period that varies according to your length of service with the company.