Chapter II: Employment contract

The severance pay provided for in Article L. 7112-3 may not be less than one month’s salary for each year or fraction of a year of seniority. The maximum number of monthly payments is set at fifteen.

The arbitration commission provided for in article L. 7112-4 determines the compensation due to an employee whose seniority exceeds fifteen years.

The decision of the Arbitration Committee is binding. It shall take effect from the date on which the matter is referred to it. No provision may stipulate that its effects shall have retroactive effect prior to that date. One of the arbitrators or the Chairman of the Arbitration Committee shall file the original of the decision with the Clerk of the Court in whose jurisdiction the decision was rendered. This…

The Arbitration Committee’s decision shall be notified to the parties by registered letter with acknowledgement of receipt twenty-four hours after it is rendered. Such notification shall be made by one of the arbitrators or by the Chairman of the Arbitration Committee.

The arbitration committee comprises two arbitrators appointed by the employers’ professional organisations and two arbitrators appointed by the employees’ trade unions.

The appointment of the arbitrators by the president of the court of first instance takes place eight days after a formal notice sent by registered letter to the defaulting party by the other organisation or to both parties by the party concerned.