Our experts will guide you in your choice of domicile.
Our experts will guide you in your choice of domicile.
A mutual termination is an agreement between an employee with a permanent contract (CDI) and their employer to terminate their employment contract. The conditions of this procedure are set out in articles L.1237-11 to L.1237-16 of the French Labour Code.
When starting a business, a conventional termination of a permanent contract (CDI) comes into play in two main cases. It's used when leave for business creation or part-time work isn't possible, and resignation isn't an option.
A properly executed mutual termination of the employment contract begins with one or more interviews between the employer and the employee, and ends with approval. It also offers guarantees to the employee and, under certain conditions, entitles them to unemployment benefits. To be eligible, you must have accumulated 130 days or 910 hours of work and be actively seeking employment by registering with Pôle Emploi. The duration of work is increased to 36 months for an employee aged 53 and over.
The first rule of a conventional termination of an employment contract is the absence of any imposition or constraint on the employer and the employee. This means that the employee cannot impose the decision on their employer and vice versa.
According to the Court of Cassation's decision on January 29, 2020, a mutual termination agreement will be voided if the employee signs it following instances of workplace harassment. If the mutual termination of a permanent contract is carried out under fraudulent conditions, the amicable departure will also be invalidated.
Also, if the mutual termination of the employment contract is done to bypass the employee's guarantees in terms of economic dismissal, it's invalidated. Make sure the CDI mutual termination is carried out in strict compliance with the law. This helps you get aid for young business creators to start a new adventure.
The mutual termination of a permanent contract (CDI) does not require a notice period as in the case of a resignation and is not necessarily justified. You are free as an employee to request it without any reason. To increase your chances of obtaining your CDI mutual termination, you will however have to highlight your business creation project.
The request for a mutual termination of a permanent contract (CDI) governed by law can be made in writing or orally. When it is written, it takes the form of a registered letter which must be submitted to the human resources department or to the manager.
The letter must include the following information:
Once the employer receives the letter, they will schedule a meeting with you to discuss the terms and details of the mutual termination. You will also discuss the amount of your compensation and the effective date of your departure following the approval of the CDI mutual termination.
You benefit from many advantages when you opt for a conventional termination of a permanent contract. You can leave your employer quickly and you receive, among other things, a conventional termination indemnity of the employment contract.
This is paid under the same conditions as a redundancy payment. Therefore, the amount of this allowance must be greater than or equal to the statutory redundancy payment.
In addition to this compensation, there is compensation for paid holidays and unemployment benefits, which will be paid once the employment contract has been terminated. You can focus on creating your company or a promising profession of the future by benefiting from unemployment benefit or a conventional termination indemnity.
To successfully negotiate a mutual termination of a permanent contract (CDI), you need to be upfront with your employer. Explain your business creation project, highlighting the advantages of a mutual termination of your employment contract compared to a resignation.
Emphasize the advantages of a mutually agreed termination for your employer. For example, highlight how eliminating your position could help the company save money. Also, explain that this type of contract termination costs less than a layoff. It's also less risky for them due to the short challenge or withdrawal period and the approval process.
Find out how to properly enter the world of entrepreneurship after obtaining your conventional termination of the CDI.
Your business creation project needs to be perfect and well-thought-out, accompanied by a business plan tailored to your experience and skills. If you're new to business creation, we can support you after your mutual termination for the domiciliation of your company. Your Pôle Emploi advisor will also suggest entrepreneurship training after the mutual termination.
You're entitled to unemployment benefits as soon as your mutual termination agreement is effective. So you need to choose between monthly payments of benefits over two years and receiving 45% of your accumulated unemployment rights when you create your business (registration with Pôle Emploi).
The amount of your paid leave and severance pay allows you to have a decent income during the first few months of the waiting period. Use it to finance your lifestyle for a few months after the mutual termination. Once you register with Pôle Emploi, the return-to-work allowance (ARE) will take over.
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