Prud'hommes: what is the lump sum conciliation allowance?
Verified 25 April 2023 - Legal and Administrative Information Directorate (Prime Minister)
A first step in the prud'hommale procedure is to reach an agreement between the two parties. That's what we call the reconciliation.
This agreement provides for the payment of a lump sum conciliation allowance.
What disputes are involved? What is the amount of this allowance? Should a document be drafted if an agreement is reached? Does it overlap with other allowances? Is this allowance taxable?
We're doing an update on the regulations.
When the employee contests his dismissal before the conseil de prud'homme, an agreement may be reached before the conciliation board to settle the dispute.
This agreement provides for the payment of compensation called lump-sum conciliation allowance.
During conciliation, the agreement may be proposed either by the employer, by the employee or by the conciliation office of the Labor Council itself.
Minutes shall be drawn up in the event of agreement between the parties.
The amount of the allowance is calculated on the basis of the gross remuneration of the employee.
It is determined on the basis of a scale which takes into account the employee's seniority.
Employee's seniority | Amount of compensation |
|---|---|
Less than 1 year | 2 months salary |
Between 1 year and less than 8 years | 3 months of salary for 1 year, plus an additional 1 month per year of service |
Between 8 years and under 12 years | 10 months salary |
Between 12 and under 15 | 12 months salary |
Between 15 and under 19 | 14 months salary |
Between 19 and under 23 | 16 months salary |
Between 23 and under 26 | 18 months salary |
Between 26 and under 30 | 20 months salary |
30 years or older | 24 months salary |
Agreement between employer and employee terminates the dispute between the parties.
The minutes of the agreement shall be deemed to waive all claims and compensation for irregularities in the dismissal.
Yes, the conciliation allowance may be combined with legal, contractual or contractual compensation related to the termination of the employment contract (severance pay, compensatory leave with pay, compensatory period of notice, non-compete compensation...).
No, the lump sum conciliation allowance is not taxable if it does not exceed the rates.
No, the lump sum conciliation allowance is not subject to contributions or contributions (CSG/CRDS) if the amount global does not exceed twice the annual social security ceiling (i.e €87,984 for 2023).
Warning
in order to assess this limit, other allowances paid are to be taken into account (in particular severance pay).
Conciliation Agreement
Conciliation lump sum scale