In the menu of controversial subjects of the 2026 budget, conventional layoffs were singled out as a source of public financial costs, which are expected to reach a total amount of more than 9 billion euros in 2024. The question of increasing the employer’s contribution from 30% to 40% towards the compensation paid to workers during layoffs was raised within the framework of the parliamentary debate, on the grounds that there would be violations, to the detriment of companies.
Conventional termination of employment can be requested at the initiative of the employer or employee, who mutually agree on the terms of termination of the employment contract in the interests of well-understood mutual interests.
Created in the midst of the financial crisis in 2008, to facilitate the peaceful separation of permanent contract workers and their employers, thereby making the labor market smoother, the system is currently suspected of being abused: by managers, on the one hand, to force their employees to leave without causing a fuss, and by employees, on the other hand, to be able to leave the company with compensation and unemployment insurance protection.
Since its inception, conventional termination has become increasingly popular: 40,363 in 2008 to almost 250,000 in 2010, and more than 500,000 per year from 2022 (515,000 in 2024), according to the research, studies and statistics management of the Ministry of Manpower (Dares). Only Covid-19, in 2020, slowed this enthusiasm temporarily. These figures correspond to a certain cost to Unédic, as three-quarters of the splits were largely disguised resignations, according to a note from the Institute of Public Policies published Tuesday, November 4.
Smooth exit
Only one in four conventional layoffs would replace layoffs for personal reasons, which are already covered by unemployment insurance. Choosing to negotiate a break rather than resign is legal, but places the burden on Unédic to compensate those who do not return to work within six months, namely 14% of those who resign, according to Dares.. Which could represent 50,000 people per year.
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