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  • Writer's pictureMe Cyrille Catoire

Do you have to know when to stop in the context of an initial negotiation?

It is often tempting for an employee to wish to negotiate the highest possible compensation during an amicable termination with his employer, especially when the employee finds himself in a position of strength in the negotiation.

However, it should be kept in mind that requesting a higher compensation than that initially proposed by the employer does not always make sense ❗️

It turns out that compensation for termination of the employment contract that exceeds the value of 10 Passes (annual social security ceiling) (411,360 euros in 2022) is fully subject to social security contributions.

To apply this ceiling, all the severance pay received by the employee is combined (severance pay or conventional severance pay + transactional compensation).

When the remuneration of the employee concerned is high and he has significant seniority, it is then necessary to be very vigilant about this ceiling, so as not to end up with a total submission of the sums paid to social contributions.

Therefore, it may be much more appropriate not to seek to increase the compensation received when the ceiling of 10 Passes is very close.

✅ In such a case, it will be appropriate to lower the overall compensation by providing, for example, for the costs of his lawyer to be covered by his employer, or even the financing of an outplacement firm, again by the employer.

You got it: more can sometimes be less.



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