Our experts will guide you in your choice of domicile.
Our experts will guide you in your choice of domicile.
The "rupture conventionnelle" is an agreement between an employee on an open-ended contract (CDI) and his or her employer to terminate the employment contract between them. The conditions for this procedure are set out in articles L.1237-11 to L.1237-16 of the French Labor Code.
In the context of setting up a business, the conventional termination of a permanent contract comes into play in two main cases. It comes into play when business start-up leave or part-time work are not possible, and resignation is not an option.
A well-executed contractual termination of employment begins with one or more discussions between the employer and employee, and ends with approval. It also offers guarantees to the employee and entitles him or her to unemployment benefits, subject to certain conditions. To qualify, you must have accumulated 130 days or 910 hours of work, and be actively seeking employment by registering with Pôle emploi. The working period is extended to 36 months for employees aged 53 and over.
The first rule of a conventional termination of an employment contract is the absence of any imposition or constraint on either the employer or the employee. This means that the employee cannot impose the decision on the employer, and vice versa.
According to a ruling by the French Supreme Court on January 29, 2020, the procedure for the conventional termination of an employment contract will be nullified if the employee signs the agreement as a result of moral harassment. If the contractual termination of a permanent employment contract is carried out under fraudulent conditions, the amicable departure will also not be validated.
What's more, if the contractual termination of the employment contract is designed to circumvent the employee's guarantees in terms of economic redundancy, it will be invalidated. Make sure that your contract of employment is terminated in strict compliance with the law. This will help you to obtain assistance for young business creators to start a new adventure.
Contractual termination of an open-ended contract does not require notice as with resignation, and does not necessarily have to be justified. As an employee, you are free to request this without giving any reason. To increase your chances of obtaining a CDI, however, you should put forward your business creation project.
The request for a contractual termination of an indefinite-term contract, governed by law, can be made in writing or orally. Written requests take the form of a registered letter, to be delivered to the human resources department or to the manager.
The letter must include the following information:
Once the letter has been received, the employer schedules a meeting with you to discuss the terms and details of the conventional termination. You will also discuss the amount of your severance pay and the effective date of your departure following approval of the conventional CDI termination agreement.
When you opt for a conventional termination of an open-ended contract, you benefit from a number of advantages. You can leave your employer quickly, and receive a severance payment for the termination of your employment contract.
This is paid under the same conditions as redundancy pay. Consequently, the amount of this indemnity must be greater than or equal to that of the legal severance pay.
In addition to this indemnity, you will receive vacation pay and unemployment benefits once your employment contract has been terminated. You can focus on creating your own business or a promising career by taking advantage of unemployment compensation or severance pay.
To successfully negotiate a contractual termination of an open-ended contract, you need to lay your cards on the table with your employer. Explain your plans to set up your own business, highlighting the advantages of a conventional termination of your employment contract over a resignation.
Emphasize the benefits of a conventional severance agreement for your employer. For example, emphasize that eliminating your position could help the company save money. Explain that this form of contract termination costs less than redundancy. It's also less risky for your employer, thanks to the short contestation or retraction period and the approval procedure.
Find out how to enter the world of entrepreneurship once you've obtained a conventional termination of your permanent employment contract.
Your project to set up a new company must be perfect and serious, accompanied by a business plan adapted to your experience and skills. If you're new to setting up a business, we can help you to register your company after your contractual termination. Your Pôle emploi advisor will also suggest that you take a training course for entrepreneurs after your contractual termination.
You are entitled to unemployment benefit as soon as the conventional termination of your employment contract is effective. You therefore have to choose between monthly payment of the allowance over two years, or cashing in 45% of your accumulated unemployment rights as soon as you set up your business (registration with Pôle emploi).
Your vacation pay and severance pay will provide you with a decent income for the first few months of the waiting period. Use them to finance your lifestyle for a few months after the contractual termination. Once you've registered with Pôle emploi, the back-to-work allowance (ARE) will take over.
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