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Collective settlement agreement (RCC) in French Labour Law

Since January 2018, all companies in France, without conditions of employees, can conclude a collective settlement agreement (RCC) instead of a PSE which aims at facilitating the voluntary departures of the employees and dissociating them from the plans of safeguard of the employment (PSE). This arrangement makes it possible to provide, by collective agreement validated by the administration, for the termination of employment without any economic reasons or justifications. The RCC is an autonomous mode of breach of contract, exclusive of dismissal or resignation and cannot therefore be imposed by one of the parties (Article L 1237-17 Code du Travail).

This kind of settlement allows the employer and the employee on an indefinite-term contract (CDI) to agree on the terms of the termination of the employment contract between them. The RCC is possible without any legal reasons or justifications (i.e. economic reasons). A legal procedure lays down the procedures to be respected (drafting of an agreement of rupture and validation by the DIRECCTE). [Read more…]

The French employment contract

A French employment contract comes into effect from the time from which an employee performs a service in return for payment for an employer with which a relationship of subordination exists. In the majority of cases, it is necessary by law that the contract is drawn up in writing (z.B. fixed-term employment contract, part-time employment contract, apprenticeship contract, resettlement contract, etc.). Only a permanent contract in France (contrat à durée indéterminée) can be made verbally and/or tacitly. But written confirmation of the contract must also be given in these cases as a minimum.

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