A Grading Scale to Help Facilitate Post-Termination Settlements

September 04, 2013

A new lump-sum grading scale has been introduced, by Decree n° 2013-721 of August 2, 2013, to help facilitate post-termination settlements at the conciliation hearing stage. The scale may also prove useful for out of court settlements, as well as amicable terminations.

Under French law, a conciliation hearing must take place in all litigations brought before employment tribunals dealing with employment contracts’ terminations (article L. 1411-1 of the French Labor Code).

Law n° 2013-504 of June 14, 2013 on flexi-security introduced the concept of a pre-defined lump-sum, allowing the parties to put an end to their litigation at the conciliation hearing. The aim of this new measure is to increase the number – so far very low – of litigations ending through conciliation before the employment tribunals.

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