Increase in individual contractual terminations
In 2021, 454,000 individual contractual terminations have been approved by the regional directorates for the economy, employment, labor and solidarity (Dreets) in the private sector in mainland France. An increase of 6.1% according to the latest Dares study published today.
Source: Dares
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A slowdown in conventional terminations among executives
Among managers, their number continues to increase but at a slower pace (+1.6% in 2021 after +2.3% in 2020 and +10.0% in 2019)
Dares
Managers represent 19% of contractual terminations signed in 2021.
In a context of full employment for executives, employers are undoubtedly more reluctant to grant this type of break. And/or the more serene executives to slam their resignation in order to go straight to a new job.
Definition of contractual termination
Contractual termination is a procedure that allows the employer and the employee to jointly agree on the conditions for the termination of the employment contract that binds them. This rupture results from an agreement signed by the parties to the contract, that is to say the employer and the employee.
To know more >> What is an individual conventional termination?
Severance pay for executives still higher than for other employees
Compared to other categories of employees, at a given level of seniority, executives benefit from more advantageous severance pay:
- The median compensation for executives in contractual breach thus amounts to 5,280 euros, against 1,000 euros for employees.
- While the median compensation for executives is 0.30 month salary per year of seniorityit is close to 0.25 months among employees and manual workers, which corresponds to the legal minimum.
- In addition, 57% of executives have an allowance at least 5% higher than the legal allowance, while this excess only concerns 17% of workers and 19% of employees.
Differences in compensation between executives
While 43% of executives obtain compensation very close to the legal threshold, others manage to negotiate much better compensation. Why ? Dares explains these disparities “by a more in-depth knowledge of the system by some, by the sector of activity or even by the size of the company”.
These differences also increase with seniority:
Half of the executives with a seniority of between three and ten years receive compensation greater than or equal to €6,840. This even exceeds 32,000 euros for the most experienced (more than 10 years of experience).
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