Conventional termination: Secure your professional future!

What is the point of making a conventional termination?

Conventional termination is a legal means of terminating an employee's employment contract amicably. It can concern a single (individual contractual termination) or several employees (collective conventional termination) of a company. The principle of this method of termination of an employment contract is a mutual agreement between the employer and the employee concerned. It is not necessary to justify the termination in this case, unlike dismissal for example.

As an employee, negotiating a conventional termination can facilitate your search for a new job or care in the event of sick leave. In addition, unlike a  resignation, a  conventional termination allows you to receive specific compensation when you leave the company. For conventional termination compensation, the minimum amount is set by law and you can agree with the employer on a higher amount.

Conventional termination and unemployment are compatible because you can register as a jobseeker at the end of your employment contract. Termination of the contract upon mutual consent of the parties proves more advantageous than resignation and dismissal for the employee when it is well negotiated.

Furthermore, all companies can implement a conventional termination procedure when all the conditions are met. Only employees on permanent contracts are eligible for this amicable procedure, employees on fixed-term contracts and those with a temporary employment contract cannot benefit from the system. When a fixed-term contract is terminated before its end, we rather speak of termination by mutual agreement. Conventional termination is also possible in the civil service, but this can only concern permanent civil servants and contract workers on permanent contracts.

What are the conditions for carrying out a conventional termination?

The essential condition required to implement a conventional termination procedure is a mutual agreement between the employee and the employer. There is no legal agreement or legal framework that offers the possibility for the employer to impose a conventional termination on the employee and vice versa. This breach of contract is however prohibited in the following situations:

• lack of consent between the two parties,

• a procedure proposed as part of a collective agreement for the forward management of skills and jobs or a job protection plan,

• a procedure aimed at circumventing the guarantees provided for the employee or staff in matters of economic dismissal.

When your plan for a conventional termination is deemed fraudulent at the approval stage, the industrial tribunal has the power to cancel the procedure.

What are the steps to make a conventional termination?

Conventional termination procedures generally take place in five main stages.

The conventional termination letter

To request a conventional termination, you must write a letter mentioning the articles of the Labor Code which authorizes it. The latter must be drawn up by the person at the origin of the request for conventional termination, that is to say, the employee or the employer. This letter must also include:

• the identity of the applicant and their contact details,

• the name of the company or administration,

• the start date of the contract and the desired end date.

You can hand deliver the written letter to the recipient by requesting a receipt or send it by post.

The preliminary interview

Following your request for a conventional termination, you are entitled to a  prior interview organized with the other party to discuss the subject. This prior interview is mandatory. The date, time, place, and deadline are freely set by the parties. The employee may be assisted by a staff representative or a company advisor after having taken care to inform the employer. For its part, the employer can request a member of staff or the union organization after having informed the employee.

The conventional termination agreement

When the parties agree to proceed with the conventional termination, the act is materialized by an agreement that sets out the terms of termination of the employment contract. The conventional termination agreement is in fact drawn up by the employer and a copy is given to the employee after signature by both parties. It includes a brief statement of the facts, the date of termination of the employment contract (generally the day after the day of authorization from the labor inspectorate), and the amount of compensation.

Validation of the conventional termination

For the act to be valid, a  notice of conventional termination of 15 days following the signing of the agreement must be respected. Once this period has passed, the agreement or the conventional termination form is sent to the competent authority in charge of employment, solidarity, and population protection. The request for approval of the agreement is then made by the employee or employer.

End of employment contract

The labor inspectorate has 15 days after receipt of the letter to respond to the request for approval of your conventional termination agreement. When the procedure is completed, the employee's employment contract ends on the agreed date. On this date, the employer gives him the employment certificate, the Pôle Emploi certificate, the all-account balance, and a summary of the amounts saved.

What are the rights and compensation in the event of a contractual termination?

In addition to the salary due until the last day of work, the employee on a permanent contract who benefits from a conventional termination receives  several compensations  :

• compensation for paid leave in respect of acquired leave which was not received on the day of termination of the contract,

• compensation under the non-competition clause,

• any bonuses and bonuses,

• specific compensation for conventional termination.

The final compensation is paid by the employer, regardless of your seniority in the company. The amount cannot be less than the legal severance pay. Conventional termination compensation is exempt from income tax for the employee under certain conditions.

On the other hand, it is subject to CSG for the employer, but exempt from social security contributions for the fraction below 82,272 euros. The calculation of the amount of compensation is done in different ways depending on whether you have less or more than 10 years of seniority in the company.

Practical tips for transitioning to new opportunities

Before your professional transition, you must avoid certain pitfalls that could compromise your conventional termination. For example, you must make sure to make your verbal requests while keeping your mood. You must also avoid criticizing the company and staff in written letters, which can be produced in court in the event of litigation before a court.

Also, read the termination agreement carefully before signing it to be sure that the content complies with the agreements. If you notice an error after signing, do not hesitate to exercise your right of withdrawal or contest the act before the industrial tribunal after approval.

If your conventional termination went well without any major errors, start by writing an effective CV for your next job search. Take stock of your professional project and take care of your online reputation by prioritizing quality over quantity. If necessary, take time to train yourself, organize your job search like a professional and prepare for your job interviews as best you can.