A dismissed employee, except in the case of gross misconduct, is entitled to a severance allowance if they have at least five years’ service within the organisation: Less than 5 years No severance payment 5 to 9 years 1 month’s gross salary 10 to 14 years 2 months’ gross salary 15 to 19 years 3 months’ gross salary 20 to 24 years 6 months’ gross salary 25 to 29 years 9 months’ gross salary 30 years or more 12 months’ gross salary In order not to make a severance payment, an organisation employing less than 20 workers can inform the employee in the dismissal letter that the severance payment is replaced by an extension of the notice period: Length of service Extension of the notice period to 5 years 5 months 10 years 8 months 15 years 9 months 20 years 12 months 25 years 15 months 30 years 18 months Article 115-9 LIR: The tax-free limit for severance payments (including those agreed through a collective agreement) and compensation for abusive breach of an employment contract are subject to tax-free limits equal to twelve times the minimum salary for non-qualified wage earners …
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