The employer and the worker may agree to terminate the employment contract by mutual agreement in accordance with Article 1. L. 1237-11 to L. 1237-16 of the French Labour Code. This procedure is different from the dismissal procedure initiated by the employer and the unilateral dismissal of the worker. If the DIRECCTE rejects the procedure initially, but revokes this decision a posteriori, the employer providing additional missing information, the initial cancellation contract is considered to have been issued (Judgment of the Social Chamber of the Court of Cassation No. 15-24220 of 12 May 2017). Conditions of a termination and concord agreement Under certain conditions, a transaction may be concluded between the parties after the signing of a termination (Court of Cass. Ploughshare. 26 March 2014). An accident at work or an occupational disease also does not preclude the signing of a cancellation contract (Court of Cass Soc. 30 September 2014).
The same applies to the signature during maternity leave (Cour de Cass soc. 25 March 2015) and after the start of the dismissal procedure (Cour de Cass). Ploughshare. 3 March 2015). In addition, the worker is entitled to unemployment benefit (in France for a maximum period of 2 years). In the event of a high count, there may be a possible ”suspension period” of up to 150 days, until unemployment benefits can be received. It is quite possible to initiate exceptional termination procedures after the signing of the cancellation contract if the conditions are met (judgment no. 13/02186 delivered by the Paris Court of Appeal on 24 June 2016). If the corresponding collective agreement does not provide for a higher amount, the minimum amount will be per type. L. In case of non-compliance with the procedure or if the amount of the transaction is lower than the legal right to the transaction, the French supervisory authority DIRECCTE will not authorize the dismissal procedure.
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