Dispute Resolution: Indemnity at Conciliation

Dispute Resolution: Indemnity at Conciliation

A recent French law has set the amount of the indemnity which can be paid to an employee at the stage of conciliation, in order to resolve a dispute.

What is this indemnity?

When a dispute is brought before the Industrial Tribunal, the parties first meet with a special judge in the attempt to find a compromise. This is called the conciliation procedure. If they do not agree on a solution, the dispute is resolved in court. As a compromise, the parties can agree on the payment of an indemnity by the employer to the employee.

A recent French law has now established a predetermined amount of indemnity to be paid to the employee at the stage of conciliation in order to end the dispute. The amount of the indemnity varies according to the seniority of the employee.

What is the amount of the indemnity?

The amount of this indemnity depends on the employee’s seniority in the company.

The law provides for the following amounts:

– For a seniority of less than 2 years: 2 months of salary;
– For a seniority between 2 and 8 years : 4 months of salary;
– For a seniority between 8 and 15 years : 8 months of salary;
– For a seniority between 15 and 25 years : 10 months of salary;
– Beyond 25 years seniority: 14 months of salary.

If the parties do not agree on this indemnity, the dispute is resolved in court.

But if the parties agree on the payment of this indemnity, it constitutes a waiver of all claims and indemnities pertaining to the termination of the contract.

Please contact us if you require any further information on this subject.

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