This little line must be checked before signing an employment contract: it can cause you to lose money

This little line must be checked before signing an employment

Several hundred euros can be lost accidentally.

In France, three million people do not have a job, according to the latest published figures, and most of them (83%) are actively looking for work. A quest which is not always obvious, aspirations often clashing with the reality of the offers available. In addition, with the rules of France Travail (the new name of Pôle emploi), unemployment can only be received during a very specific period, which varies from 18 to 27 months maximum depending on age. Enough to push recipients to quickly find a job. But in the rush, an important detail to check can quickly be forgotten.

When a fixed-term contract ends and is not renewed, the employee receives, in addition to their final salary, end-of-contract compensation, also called a “precariousness bonus”. The general rule is that the amount is equal to 10% of the gross amount received by the employee. For example, for a person who earns 1500 euros net per month (i.e. 1923 euros gross) as part of a six-month fixed-term contract, their compensation will be 1153.80 euros (1923×6*10%). But this rule is not valid for everyone and some may pay the price.

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Another calculation may be applied depending on the profession carried out, which may reduce the amount of this bonus. Some companies are only required to pay 6% of the total gross received by the employee. In our example, this would ultimately mean only receiving 692.28 euros, or around 460 euros less. A significant loss, especially when you find yourself unemployed after the end of your fixed-term contract. This shortfall is, however, compensated by the payment, by the company, of a skills assessment for its ex-employee and simplified access to professional training. The objective: to quickly find a job by acquiring new skills.

To avoid this unpleasant surprise, it is necessary to find out about the collective agreement for the sector in which you will work. To do this, simply ask for the name of the agreement during a job interview, it also appearing on the employment contract. Afterwards, This site of the government allows you to find out in two clicks whether the branch is affected by this lower compensation. To be sure, you should also not hesitate to ask the question directly to the company’s HR department.

For example, all professions linked to the collective agreement for “Service providers in the tertiary sector” are concerned. These include, among others, switchboard operators, reception agents and hostesses, certain administrative employees, secretaries or other salespeople.

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