There are 2 options for
termination due to position elimination (depending on circumstances):
1. Dismissal:
unilateral termination of a contract by the employer.
2. Mutual
termination (conventional rupture): both parties agree to end the employment
relationship.
Conventional rapture is
preferable for the employer, who does not need provide a real and serious cause
for dismissal, which is mandatory for dismissal.
For instance, a dismissal for
economic reasons must be the result of a change in the company's economic
situation: economic difficulties (a drop in orders or revenue, operating
losses, etc.); significant technological transformation or reorganisation
of the company, etc.). Plus, a dismissal can take place if an employer first
tries to redeploy an employee to another job within the company or group.
Procedure of conventional
rupture:
Consultations:
Before signing an agreement,
consultations/discussions must be organised, during which the parties agree on
the principle of a contractual termination (1 or more meetings).
Withdrawal
period:
Both parties may withdraw from
the termination agreement up to 15 calendar days.
Endorsement
by the labour authorities:
The
Labour Administration must be informed of the intended termination and has 15
working days to oppose/accept the termination. The earliest termination date
can only be after these prescribed 15 w/days.
Eventually, the termination date
must be at least 5 weeks after the signing of the agreement.
Payments:
a) all
accrued and unused vacation days.
b) all
overtime payments.
c) a
statutory severance indemnity (is determined by statute or an applicable CBA,
whichever is the most favourable to the employee):
· a
quarter of the average monthly remuneration per year of service for employees
with eight months of service or more for the first 10 years;
· one
third remuneration per year of service after 10 years' service.
A
month's salary is generally calculated on the basis of an employee's average
salary (including bonuses) during the last 12 months of employment (or total
months of service if less than 12) or the last three months, whichever is more
favourable to the employee.
d) a notice period
indemnity, if the notice period was not observed.
This
indemnity is equivalent to the wages the employee would have received had they
remained in the company (including any potential bonus they would have been
entitled to had they worked their notice period).e) any other
sums provided for in the employment contract or the relevant CBA.
f) social
security charge.
The procedure above is a general guide and the actual process and figures will be
assessed on the day of potential termination.
Notice period:
a) Cadre - 3 months.
b) ETAM with less than 2 years of seniority: 1 month; –– more
than 2 years of seniority: 2 months.
c) Engineers and managers it is 3 months
regardless.