top of page
Search

Not a word to France Travail on compensation for damages linked to the execution of the employment contract.


As part of a settlement agreement signed at the end of the employment contract, provision may be made for the payment of compensation - not of any salary nature - intended to compensate for damages linked to the performance of the employment contract . This may be compensation paid in compensation for psychological, moral, image damage, etc.


Such compensation is not subject to tax or social security contributions .

Indeed, both Article L242-1 of the Social Security Code and Article 80 duodecies of the General Tax Code define the rules for the taxation of compensation paid "on the occasion of the termination of the employment contract", i.e. in connection with the termination, as opposed to compensation in connection with the performance of the contract.


But, and this is where errors can arise, the compensation for damages which originate from the execution of the contract ( and not its termination ) must not appear in the employer's certificate intended for France travail:


- Step 5 of the online entry of the certificate :

Only compensation paid in connection with the termination of the contract must be mentioned.


The reason for this is that compensation for damages related to the performance of the employment contract does not generate any specific deferral of compensation (general unemployment insurance regulations).


The compensation paid to the employee in compensation for damages related to the performance of the employment contract is also not intended to appear on the “event” DSN established on the occasion of the termination of an employment contract.

Illustration: The Discreet, Joseph Ducreux, 1790

コメント


bottom of page