- Human resources
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Payment of termination indemnity (precariousness premium)
Scope of application
Employer having hired an employee on CDD (fixed-term contract), when the contract expires.
Exclusion
The termination indemnity is not due in the following cases:
- Hiring on a CDI after the CDD (including when the CDD has been renewed)
- Refusal of a permanent contract offered to the employee to hold the same job or a similar job, with at least equivalent remuneration
- Serious fault
- Major force
- CDD usage
- Supported contract (single integration contract (CUI) - Skills employment pathway (PEC), professionalization contract, apprenticeship contract, senior CDD) unless a collective agreement provides otherwise
- Contract for which the employer has undertaken to provide additional professional training to the employee
- Contract concluded with a young person during his school or university holidays
- Seasonal contract
Description
The employee is entitled to an end-of-contract indemnity (known as the precariousness premium) when the fixed-term contract comes to an end.
Amount of the precariousness premium
The termination indemnity is equal to at least 10% of the total gross compensation paid during the contract.
However, this percentage may be limited to 6% by an agreement or an extended branch collective agreement (or by agreement or company or establishment agreement). In this case, compensation must be offered to the employee, in particular in the form of privileged access to vocational training (training action, skills assessment).
Payment of the precariousness premium
Compensation is paid at the end of the contract at the same time as the last salary. It must appear on the corresponding pay slip.
In the event of renewal of the CDD, the compensation is paid at the end of the last contract.
Amount of the precariousness premium
The termination indemnity is equal to at least 10% of the total gross compensation paid during the contract.
However, this percentage may be limited to 6% by an agreement or an extended branch collective agreement (or by agreement or company or establishment agreement). In this case, compensation must be offered to the employee, in particular in the form of privileged access to vocational training (training action, skills assessment).
Payment of the precariousness premium
Compensation is paid at the end of the contract at the same time as the last salary. It must appear on the corresponding pay slip.
In the event of renewal of the CDD, the compensation is paid at the end of the last contract.
Authority
Ministry of Labor, Employment and Integration
Responsible(s)
Employeur
