Feb
02
FRENCH LABOUR LAW: Collective Mutual Agreed Termination (Rupture conventionelle collective): Template of Collective Agreement for Companies and Unions

This Template agreement is intended for companies and unions that wish to set up Collective Mutual Agreed Termination (CMAT) [Rupture conventionelle collective] in accordance with Articles L.1237-19 and following of French Labour Code.

It is however specified that it is a standardized template which imperatively needs to be adapted to the peculiarities of each company and the targets pursued.

Collective Mutual Agreed Termination (CMAT): Template collective agreement for (...)

NB: The agreement creating the CMAT is a majority collective agreement signed by representative unions that obtained at least 50% of the votes at the last employee’s elections (Article 40, III, Ordinance 2017-1387 of 22 Sep. 2017)

The validly concluded agreement must then be approved by the territorially competent DIRECCTE (Director of regional companies, competition, consumption, labor and employment/ Directions régionales des entreprises, de la concurrence, de la consommation, du travail et de l'emploi),.

No deadline is provided for the transmission of the agreement for approval but the employer has every interest to act as soon as possible as in the absence of approval by DIRECCTE, the agreement cannot take effect.

Template collective agreement on CMAT.

(Articles L. 1237-19 and following of French Labour Code)

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ENTER:

_____________, registered under number _________, whose registered head office is _______________________, represented by M./Mrs. _________________ in his quality of __________.

AND:

(1) The representative trade union organization __________, represented by Mr / Ms. ______________, in his quality of ___________.

 

(2) The representative trade union organization __________, represented by Mr./Mr. ______________, as ___________.

(3) The representative trade union organization __________, represented by Mr / Ms. ______________, in his quality of ___________.

(4) The representative trade union organization __________, represented by Mr / Ms. ______________, in his quality of ___________.

PREAMBULE:

This Agreement is concluded in the context presented to the [Economic and Social Committee / Works Council / Staff Delegates (Comité social et économique / au Comité d’entreprise / aux délégués du personnel)] at the meeting __ / __ / __.

[Explain the reasons for using CMAT: downsizing to maintain competitiveness, due to economic difficulties, reorganization, abandonment of activity, etc.]

IT HAS BEEN AGREED AS FOLLOWS:

 

Article 1 - Presentation of the device

1.1 - The collective Mutual Agreement Termination set up by this agreement is governed by Articles L. 1237-19 et seq. French Labour Code.

This agreement establishes a system whereby lay-offs (dispositif de suppression d’emplois) can be made solely on the basis of voluntary termination (depart volontaire) and without redundancies (licenciement économique).

1.2 - The company __________ will offer employees fulfilling the conditions referred to in Article 9 a termination in their employment contract by mutual agreement.

If their application is accepted, the employment contract will be broken under the conditions below.

 

Article 2 - Date of entry into force and duration of the agreement

2.1 - This agreement will not take effect until it has been approved by the DIRECCTE of [insert location].

2.2 - It is concluded for a duration of __________.

2.3 - It can be renewed once, for a maximum duration of _____, if the number of desired departures is not reached during the initial period.

[If applicable, specify the terms and conditions of the renewal: initiative, renewal deadlines, formalization of the renewal agreement].

 

Article 3 - Information [of the Economic and Social Committee / Works Council / Staff Delegates]

3.1 - A general presentation of the device will take place on __ / __ / __, before the approval of this agreement by DIRECCTE.

A question and answer session will take place within 15 days of this first meeting.

3.2 - After the entry into force of this Agreement, [the Economic and Social Committee / Works Council will be convened / the staff representatives will be convened] every [3/6 months] as part of the follow-up of the application of the agreement.

These periodic meetings shall include the follow-up of the processing of applications submitted, the cases of casting votes, the number of actual departures and their proportion to the maximum number provided for in this Agreement.

Opinions issued by [the Social and Economic Committee / Works Council / Staff Delegates] within this framework will be forwarded to DIRECCTE.

3.3 - [In the event that a possibility of renewal is provided] In the event that a renewal of the agreement is envisaged in accordance with Article 2, a meeting [of the Social and Economic Committee / Works Council / staff representatives] will be held at least one month before the planned date of renewal.

3.4 - A meeting [of the Social and Economic Committee / Works Council / Staff Delegates] will be held on the closing date of the device in order to review its application.

The balance sheet thus drawn up shall be transmitted to the DIRECCTE within a maximum of one month after the end of the implementation of the measures referred to in Article 5.

 

Article 4 - Indemnities paid to the employee in the context of the collective contractual termination of his/her employment contract

4.1 - Employees whose application has been selected will receive an indemnity payment equal to ____________ euros [Ex: 1/2/3 months’ salary per year of seniority - Minimum = amount of the legal indemnity pay (indemnité de licenciement).

4.2 - The termination indemnity thus paid will be entirely exempt from income tax (impôt sur le revenue).

The indemnity pay will be subject to social security contributions only for the fraction exceeding twice the annual ceiling of social security (ie 79,464 euros in 2018).

The fraction of the indemnity pay corresponding to the amount of [legal / contractual] indemnity pay (la fraction de l’indemnité de rupture) will be exempted from CSG-CRDS [GSC (Generalized Social Contribution) - CGS (contribution sociale généralisée) / SDRC (Social debt repayment contribution) - CRDS (contribution pour le remboursement de la dette sociale)].

 

Article 5 - Measures to facilitate external relocation

5.1 - [Example 1: Training] Employees whose application has been accepted and who justify a training project (projet de formation) validated by the Management shall receive an allowance that will cover all training costs up to an annual limit of _______ euros.

They will also be able to benefit from reimbursement of documentation and computer equipment costs (frais de documentation et d’équipement informatique) upon presentation of an invoice.

5.2 - [Example 2: Creation / taking over a business] Employees whose application has been selected and who justify a project to create or take over a business will benefit from a participation in the financing of this project within the limit of _______ euros.

This indemnity will be paid upon presentation of the proof of creation or takeover of business.

They will also be able to benefit from an individualized follow-up for the support of their project which notably includes help in set up of a "business plan".

5.3 - [Example 3: Differential remuneration in the event of external reclassification] Employees whose candidacy has been retained and who justify, within 12 months of their permanent exit from the workforce, a hiring on permanent or fixed-term contracts of at least 6 months from a new employer will be able to receive a pay differential.

The amount of this difference in compensation will be calculated by comparing the average previous net salary received over the last 12 months preceding the break-up and the net reclassification salary, up to a limit of ______ gross euros of CSG-CRDS monthly.

The salary differential may be paid for a maximum of 12 months following the hiring of the new employer.

5.4 - [Example 4: Geographical mobility project] Employees whose application has been selected and who justify a geographical mobility project will benefit from a mobility help of ______________ euros.

They will also benefit from a contribution to housing costs (frais de logement) up to ___% within the monthly limit of ___________ euros.

Moving assistance (aide au déménagement) and participation in housing costs may be combined with the measures provided for in Articles 5.1 to 5.3.

 

Article 6 - Maximum number of departures envisaged and associated job losses

6.1 - Under this Agreement, the maximum number of departures envisaged is __________.

6.2 - The number of jobs elimination (suppressions d’emploi associées) is _______.

These job elimination (suppression d’emploi) are distributed as follows:

[Number of job losses by occupational category, occupation, establishment, geographic area]

Article 7 - Duration of implementation of the device

The duration of implementation of the device shall be ___________ [days, months, years - free duration] from the date of entry into force of this Agreement.

Article 8 - Staff information

This agreement and the device it establishes will be presented to all staff [during a special information meeting / through the company Intranet].

Article 9 - Requirements to be an applicant (candidate)

In view of the purpose of this Agreement, the conditions to be fulfilled in acceding to a Collective Agreed Termination in this context are as follows:

[List of conditions according to the objective pursued - Ex: belonging to one of the occupational categories concerned, occupation of a job in the trades concerned, belonging to one of the targeted institutions, belonging to one of the targeted sectors of activity, seniority, training project, business creation / takeover or geographical mobility etc.]

 

Article 10 - Submission of applications.

10.1 - The application form and the list of documents in the file [will be made available to employees on the company Intranet / should be requested from the Human Resources Department].

10.2 - The complete application file must be sent [electronically / by post] to the Human Resources Department.

All applications must be [sent / submitted] no later than midnight on __ / __ / __.

10.3 - [Assuming the possibility of renewal] In the event of renewal, the renewal agreement will specify the date on which the second wave of applications will be closed.

 

Article 11 - Examination of applications.

11.1 - Applications will be examined by [the Human Resources Department / Joint Commission].

[The Director of Human Resources / Commission] will have a period of _____ days to decide.

In this context, [the Director of Human Resources / the Commission] will hear the applicant in the course of an interview.

11.2 - In case of incomplete file, [the Human Resources Department / the Commission] will invite the applicant to provide the missing parts.

The applicant will then have a period of ___ days to complete his file.

11.3 - Any refusal must be the subject of a written and reasoned reply.

Article 12 - Criteria for distinguishing CMAT Applicants

In the event that the number of applicants exceeds the maximum number of departures envisaged mentioned in Article 6, to separate the applicants, [the Director of Human Resources / the Commission referred to in Article 11] [will apply a criteria of chronological order’s applications / will give priority to employees who justify the seniority / give priority to employees who justify a project to create or take over a business / give priority to employees located in the geographical area of ________]. [Freely determined criteria]

Article 13 - Procedures for monitoring the agreement

[The Director of Human Resources / Commission referred to in Article 11] will present a report on the application of this Agreement to each periodic monitoring meeting [of the Social and Economic Committee / Works Council / Staff Delegates]], as mentioned in Article 3.2.

Article 14 - Revision of the Agreement

This Agreement may be revised, inter alia, to make such modifications as may be necessary at the regular follow-up meetings referred to in Article 3.2.

The revised agreement will be concluded and submitted to the DIRECCTE for approval under the same conditions as this agreement.

Article 15 – Litigation

In accordance with Article L. 1237-19-8 of French Labour Code, disputes relating to this agreement, its content or the regularity of the procedure cannot be the subject of a separate dispute from that relating to the decision to approval issued by the DIRECCTE with territorial jurisdiction.

Article 16 - Prohibition of dismissal for economic reasons

In accordance with Article L. 1237-19 of the Labour Code, the company waives any dismissal during the term of this agreement and until the end of its implementation.

Done in______________, on ______, in ___ (number in letters) copies, one for each part.

For the Compagny _______ For the Union (1) _________

Mr / Mrs _________________ Mr / Mrs __________________

 

For the Union (2) _______ For the Union (3) _________

Mr / Mrs ________________ Mr / Mrs __________________

For the Union (4) _______

Mr / Mrs _________________

 

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