There are different types of dismissal, depending on the reason. These include dismissal for economic reasons, for personal reasons and for professional unfitness. Dismissal for economic reasons is not linked to the employee. This is often the case when a company cuts a position for economic reasons.
Dismissal for personal reasons occurs when the employee has committed a fault. Such misconduct may be simple, serious or gross. In the case of dismissal for professional unfitness, it is the doctor who declares the employee unfit. In general, this occurs in the event of serious illness or accident. To survive after the loss of a job, all employees benefit from rights and compensation, subject to eligibility conditions.
Redundancy rights and compensation
Dismissed employees are entitled to notice, final pay and severance pay. The notice period begins on the day of first presentation of the letter notifying dismissal. Its duration depends on the seniority of the dismissed employee. It is one month for an employee with between 6 months and 2 years' seniority. If the employee has been with the company for more than 2 years, the notice period is 2 months. During this period, the employee continues to work normally. They can also take advantage of this period to look for other activities at the same time, or to prepare to set up their own business.
Redundancy pay is used to compensate a redundant employee for loss of employment. It is paid by the employer and may be statutory, conventional or contractual in origin. It is awarded according to the reason for dismissal and the employee's length of service. It is not paid if the dismissal is due to serious or gross misconduct on the part of the employee. However, it is payable in the event of dismissal for economic or personal reasons.
What's more, if the dismissal is due to the company closing down, all employees benefit from this compensation. In order to benefit, they must prove that they have worked for the same company for at least 8 months. In addition to this, the dismissed employee is given a "solde de tout compte" (final settlement). This document lists all the sums paid to the employee.
Unemployment benefit
The Allocation d'Aide au Retour à l'Emploi (ARE) is paid by Pôle Emploi. It is a replacement income for people who have lost their jobs. To qualify, it is important to meet certain conditions.
Conditions for entitlement to ARE
To qualify for ARE, you must have been involuntarily deprived of work. This means that you have been made redundant for personal reasons, for economic reasons or as part of a conventional severance package. You are also involuntarily dismissed if your resignation is considered legitimate.
You also need to register with Pôle emploi to benefit from this assistance. You must be registered as a job-seeker, or have completed a training course included in your Personalized Project for Access to Employment (PPAE). You must register within 12 months of the end of your contract. You also need to prove that you are taking steps to find a new job, or to set up your own business.
The amount of the back-to-work allowance
The gross amount of the back-to-work allowance cannot be less than 57% of the reference daily wage (SJR). It cannot exceed 75% of the SJR, and is based on two values. The first is fixed and equal to 12.47 euros, while the second is variable and equal to 40.4% of (SJR).
The net amount of ARE cannot be less than 30.42 euros per day. It's easier to calculate this amount using a simulator.
Duration of ARE payments
The length of time for which you will receive back-to-work benefit depends on the date of termination of your employment contract. For a contract terminated before February 1, 2023, the employee is not entitled to compensation if the period of affiliation during the last 24 months is less than 6 months. Beyond 6 months, the employee is entitled to compensation for a minimum of 182 calendar days and a maximum of 730 days.
For contracts ending on or after February 1, 2023, the duration of ARE payments is defined according to labor market conditions. When the overall unemployment rate is less than 9% and has not increased by 0.8% over 1 quarter, the duration of compensation is reduced by 25%. On the other hand, if the overall unemployment rate is below 9% and has risen by 0.8%, the pre-February 1 rules apply.
Written by our editorial expert
April 5, 2023
