France: decree published raising legal rate of dismissal compensation

In the 26 September Journal Officiel a decree is published raising the legal rate of dismissal compensation to 1/4 of monthly salary per career year for the first ten career years which is the equivalent of a 25% increase. Compensation rates move then to 1/3 of monthly salary for the remainder of the career lend in the company. For the longest standing employees this increase works out to be less than 25%: +21.4% for those with 11 career years, +15% for those with 15 career years, and +9.4% for those with 20 career years.
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French Labor Code, Article R.1234-2 had intended for the legal compensation amount to be 1/5th of monthly salary per career year plus 2/5ths of monthly salary for each career year beyond 10 tens years.

This government increase had been promised during the Labor Code reform meetings with the trade unions. The unions has been disappointed to learn that the 25% increase would only really benefit those with under eleven years of career length and would be less for those who had worked longest. The L

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