The employee who justifies two years of uninterrupted seniority at the scratch date of the notice, near the same employer, is entitled to a legal allowance of dismissal, except if he is laid off for serious error or door. The law guarantees to pay of all the companies a minimal allowance.
Calculation is determined starting from the date of notification of the dismissal. This allowance constitutes a legal minimum when the collective agreement does not lay down an allowance more favourable for the employee.

The part-time employee is entitled to the same allowances that the others paid except that they are calculated according to the working time. But the seniority will be deducted as if the employee had worked full-time.

To evaluate the seniority, the employer enters the periods of work as well as the periods of absences (paid vacations, vacation maternities, etc).

How is the amount of the allowances established ?

The law (L122-9 Article and R122-2 of the Labour regulation) fixes the minimum which the employer must pour.
If the employee is paid in the month, the allowance is equal to 1/10ème monthly salary per year of presence for the first ten years of seniority or 20 hours of wages for the employees paid per hour.
It is raised of 1/15ème of month of wages per year of presence beyond ten years of seniority.
The legal allowance of dismissal is doubled in the event of dismissal for economic motive and of dismissal for consecutive inaptitude to an industrial accident or an occupational disease.

How is the allowance calculated ?

- By the determination of the seniority: the seniority to be taken into account for calculation is appreciated at the date of service entrance of paid with the expiry of its notice. The incomplete years are also taken into account.
- By the wages of reference: the allowance is calculated over 1/12 of the rough remuneration perceived at the time of the last 12 months preceding the date by notification by the dismissal, that is to say on 1/3 of the perceived wages the last 3 months preceding the end by the notice.
- By the amount of the allowance: it varies according to the reason for dismissal.
The wages selected to calculate the legal allowance are the average of the last 12 months gross salaries increased of the holiday bonuses, of merit or assessment, end of the year of perceived during this period.
It should be retained that only the most advantageous base of calculation for the employee must be retained.

Is this allowance taxable ?

No, it is different to wages. It is not subjected to the national insurance contributions, or to the CSG. It is not taxable; therefore you do not have to enter this amount in your income tax return. It will not be subjugated with the RDS (Refunding of the Social Debt) only if the amount exceeds the amount laid down in the collective agreement.
The legal and conventional allowances of dismissal are completely exonerated from tax.
 
What is compensatory allowance in lieu of notice ?

It is an allowance which is poured to you by the employer if this one exempts to you to carry out your notice.
It is equal to the amount of the wages which you would have perceived if you had carried out the notice in the employer.
In the event of dismissal for heavy or serious fault, the employer will not pour it to you since the discharged employees are not authorized to carry out their notice.

What is compensatory allowance in lieu of paid vacations?

At the instant of the failure of the work contract, if you had not taken all the vacation to which you had right, the employer is in the obligation to pour you the compensation allowance (except in the case of a dismissal for heavy fault). To calculate the amount of the allowance, it is necessary to determine the number of days off to which you have right. In this calculation, one appoints the days acquired during the last base period and those corresponding to the base period in progress.

The compensation allowance, then, is calculated like the allowance of paid vacations: 10% of the rough total remuneration perceived between on June 1st of the previous year and on May 31st of the current year or, if the formula is more advantageous for you, the equivalent of the wages which you would have perceived if you had worked. Note, also, that the duration of the notice opens right to paid vacations.

If your employer exempted to you to carry out your notice, the allowance of paid vacations should not be decreased for as much.
You can occupy another function as of the end of your contract.

The compensation allowance of paid vacation and the compensation allowance of notice constitute an element of remuneration. They are thus subjected to the contributions of Social security, CSG and CRDS.

As of now, Share your experiments and respond through the Forum