France - New rules around amicable termination of employment contracts

• Elimination of the 20% employer contribution called “forfait social”
• Implementation of a new 30% tax called "contribution on the compensation paid in case of mutual termination agreement and retirement”, of the part not subject to social security contributions (so instead of 20%, companies will pay 30% of employer's contributions on the mutual termination severance from now on)

Please note that when the employee who signs a mutual termination is entitled to a retirement pension from a legally compulsory scheme, the tax and social contributions rules remain unchanged (i.e. the indemnity is subject to full income tax and contributions from the first euro in this case).