Amount of redundancy pay provided for by the branch collective agreement, by the professional and interprofessional agreement or by law;
\nHalf of the redundancy payment received ;
\nTwice the gross annual remuneration received by the employee during the calendar year preceding the termination of his employment contract.<\/p>\n
However, the exempt fraction resulting from the application of either of the last two limits\u2075 may not exceed six times the annual social security ceiling in force at the time of payment of the compensation\u2076.<\/p>\n
The benefit of this partial exemption poses little difficulty in practice as it is in no way conditioned by the terms on which the compensation is obtained (judgment, arbitration, settlement): a taxpayer who would not be entitled to statutory or contractual compensation (because of his seniority of less than two years or because of the commission of serious or gross misconduct) but has nevertheless entered into a settlement with his employer benefits from it\u2077.[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#002643″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” el_class=”justify” text_direction=”default”]\n
The second case of total exemption is more problematic: it concerns compensation for unlawful or unfair dismissal, i.e. dismissal without a real and serious reason or in breach of the procedural rules laid down in the Labour Code. As this is an exception to the principle of taxation, this case of total exemption must be interpreted strictly. This is, moreover, the traditional position of the Conseil d’Etat, which has held that compensation for unjustified early termination of a fixed-term employment contract is not covered by this exemption\u00b9\u2070. Similarly, the Conseil d’Etat was able to rule that compensation for dismissal without real and serious cause awarded by arbitration is fully exempt if – and only if\u00b9\u00b9 – the arbitrator did not intervene as amiable compositeur but ruled in accordance with the rules laid down by the Labour Code\u00b9\u00b2.[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#002643″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” el_class=”justify” text_direction=”default”]\n
The judges of the rue Montpensier ruled that the law as interpreted by the tax judge should not result in the benefit of the exemptions varying depending on whether the compensation is awarded by a judgment or a settlement\u00b9\u2074. It is the classification of the compensation that justifies the income tax exemption and not the way in which it is determined. As a result, a transactional indemnity cannot be refused a priori the benefit of an income tax exemption. It is up to the tax authorities, under the supervision of the courts, to determine the exact classification to be given to the compensation paid. In doing so, interpreting Article 80 duodecies in accordance with the Constitution requires an examination – necessarily subjective – of the conditions (lawful or unfair) under which the employment contract was terminated.[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#002643″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” el_class=”justify” text_direction=”default”]\n
The first positive application of this reservation of interpretation came quickly: the Conseil d’Etat has just annulled an appeal decision on the grounds that the lower courts had not examined whether an employee who had taken notice of the termination of his employment contract provided proof that this notice was comparable to a dismissal without real and serious cause due to facts likely to justify the termination of the contract to the detriment of the employer\u00b9\u2076. It should be noted that by leaving it to the lower courts to determine whether the grievances raised by the employee against his employer justified the termination of the contract to the latter’s detriment, the Conseil d’Etat endorsed the reasoning of the Cour de cassation in this regard\u00b9\u2077. It is now to be hoped that the other judges of the administrative order will arrive at solutions in line with those of the judicial judge when dealing with the same facts.[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#002643″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” el_class=”justify” text_direction=”default”]\n
The conclusion will be less clear-cut in a third case, which is much more frequent in practice: settlement after dismissal. In this case, the reality of the termination at the employer’s initiative is not debatable and the employee will benefit from a partial tax exemption where applicable. Although fixed by the parties and not by the judge, it should be possible to claim total exemption if the dismissal is unfair or unlawful.<\/p>\n
If the taxpayer wishes to benefit from a total exemption, the settlement must set out the factual elements that justify the unlawful or unfair nature of the dismissal. Prudence would dictate that all the elements that could be raised in a classic industrial tribunal dispute should be included in the settlement. The mere fact that the employer acknowledges the unfair or unlawful nature of the dismissal on which he is settling should not be enough to convince the authorities. Ultimately, it will be the tax judge who will have to take the place of the employment contract judge in assessing whether the dismissal is unfair or unlawful. Here again, the emergence of administrative jurisprudence that competes with – or even differs from – judicial jurisprudence in this area cannot, unfortunately, be ruled out.<\/p>\n
Until 1999, the tax treatment of redundancy payments was largely unpredictable, since it was based on a purely subjective assessment of the nature of the loss compensated by the payment. Was the compensation for loss of earnings taxable? It was taxable. Did the compensation compensate for a distinct loss, particularly of a moral or professional nature? It was exempt. To distinguish the wheat from the chaff, the judge took into account various criteria: the taxpayer’s age, seniority, level of training, or the conditions under which the termination of his or her duties had occurred, etc. It was to put an end to this legal uncertainty that the legislator intervened in 1999\u00b9\u2078 and established an objective system, as far removed as possible from all these contingencies. Constitutional and administrative case law, which now requires a casuistic examination of the conditions under which the termination took place to determine whether the compensation is taxable or exempt, gives credence to Horace’s saying: \u2018Chase the natural with pitchforks, it will always return<\/em>\u2019\u00b9\u2079.[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” top_padding=”2%” constrain_group_1=”yes” bottom_padding=”2%” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”1″ divider_color=”default” animate=”yes” delay=”300″ custom_height=”60″][\/vc_column_inner][\/vc_row_inner][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”” el_class=”small” text_direction=”default”]1 – CGI, art. 80 duodecies, 1<\/p>\n 2 – In practice, the following are concerned: the chairman of the board of directors, the chief executive officer, the deputy chief executive officers, the provisional managing director and the members of the management board of a soci\u00e9t\u00e9 anonyme; the statutory managers of a soci\u00e9t\u00e9 par actions simplifi\u00e9es; the non-majority manager of a soci\u00e9t\u00e9 \u00e0 responsabilit\u00e9 limit\u00e9e.<\/p>\n 3 – In the words of Claire Legras, public rapporteur, in her conclusions under CE, 24 June 2013, no. 365253: Dr. fisc. 2013, comm. n\u00b0 402, n\u00b0 36).<\/p>\n 4 – CGI, art. 80 duodecies, 1-1\u00b0 and 3\u00b0.<\/p>\n 5 – These last two limits also apply to forced termination payments made to corporate officers and directors (CGI, art. 80 duodecies, 2).<\/p>\n 6 – i.e. \u20ac228,240 for compensation received in 2015.<\/p>\n 7 – BOFIP, BOI-RSA-CHAMP-20-40-10-30-20140307, no. 40.<\/p>\n 8 – CGI, art. 80 duodecies, 1-2\u00b0.<\/p>\n 9 – Within the meaning of C. trav. L. 1233-32 and L. 1233-61 to L. 1233-64.<\/p>\n 10 – CE, 5 May 2010, no. 309803: RJF no. 7\/10, no. 677, BDCF 2010, no. 77, concl. P. Collin.<\/p>\n 11 – BDCF 2012, no. 113, concl. V. Daumas.<\/p>\n 12 – CE, 20 June 2012, no. 345120: RJF no. 10\/12, no. 914. In the same vein: CAA Paris, 25 Oct. 2011, no. 10PA04698: RJF no. 4\/12, no. 358.<\/p>\n 13 – CE, 24 June 2013, no. 365253: RJF no. 10\/13, no. 963.<\/p>\n 14 – Cons. const. 20 Sept. 2013, n\u00b0 2013-340 QPC : RJF n\u00b0 12\/13, n\u00b0 1162.<\/p>\n 15 – CE, 24 Jan. 2014, no. 352949: RJF no. 4\/14, no. 335; BDCF 2014, no. 4, concl. C. Legras.<\/p>\n 16 – CE, 1 Apr 2015, no. 365253: RJF no. 01\/15, no. 487; BDCF 2015, no. 69, concl. M.-A. Nicolazo de Barmon. Note that this was the case that gave rise to the Constitutional Council’s decision.<\/p>\n 17 – Cass. soc. 25 June 2003, n\u00b0 01-42335 – Cass. soc. 25 June 2003, n\u00b0 01-42679 – Cass. soc. 25 June 2003, n\u00b0 01-43578 : RJS n\u00b0 8-9\/03, n\u00b0 994, with chronicle J.-Y. Frouin, p. 647.<\/p>\n 18 – L. n\u00b0 99-1172, 30 d\u00e9c. 1999, art. 3 : JO 31 d\u00e9c. 1999, p. 19914.<\/p>\n 19 – \u2018Naturam expelles furca, tamen usque recurret\u2019, Horace, Epistles, 1, 10, 24.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” equal_height=”yes” content_placement=”middle” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” top_padding=”3%” constrain_group_1=”yes” bottom_padding=”3%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”5px” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][image_with_animation image_url=”3485″ image_size=”full” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”custom” mask_enable=”true” mask_size=”contain” max_width_custom=”50%” max_width_custom_tablet=”30%” max_width_custom_phone=”25%”][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#002643″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” el_class=”med” text_direction=”default”]Bertrand Lacombe<\/strong> [vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#ffffff” scene_position=”center” top_padding=”2%” constrain_group_1=”yes” bottom_padding=”2%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default”…<\/p>\n","protected":false},"author":3,"featured_media":5294,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[],"class_list":["post-5506","post","type-post","status-publish","format-standard","has-post-thumbnail","category-academic-publications"],"yoast_head":"\n
\n<\/strong>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner column_margin=”5px” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” font_color=”#7696a5″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”” text_direction=”default”]Lawyer at the Court, Lacombe Avocats[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”5px” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][nectar_btn size=”medium” open_new_tab=”true” button_style=”regular” button_color_2=”Extra-Color-3″ icon_family=”fontawesome” text=”Download the document” url=”\/wp-content\/uploads\/2024\/07\/le-juge-administratif-conseiller-prudhomal.pdf” icon_fontawesome=”fa fa-file-pdf-o” margin_top=”15px”][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"