In a decision of April 24th, 2024 (n° 22-20.472), the social chamber of the Court of Cassation ruled for the first time that, the Conciliation and Orientation Office (BCO) of the labor court having general jurisdiction to settle any dispute arising from the employment contract, the parties who voluntarily appear before this office may freely extend the subject of their conciliation to questions beyond those of severance pay alone.
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This decision is important because it is the first time that the Court of Cassation has ruled on this point. In practice, many conciliation reports already provided for the waiver of any claim relating to both the performance and termination of the employment contract. However, some industrial tribunals refused to sign draft conciliation reports providing for the employee's waiver of claims relating to the performance of the employment contract.
This ruling therefore puts an end to this difference in practice between industrial tribunals.
This will also reassure some employers who are reluctant to sign a conciliation report without also signing a transaction to frame the end of the dispute relating to the performance of the employment contract.
However, signing a conciliation report, exclusive of any transaction, has many advantages for the employee (non-taxable amount within the limit of the scale, amount exempt from social security contributions within the limit of two PASS, no waiting period for the collection of unemployment insurance rights).
This solution will therefore necessarily promote negotiations before the conciliation and orientation office.
However, so that no party waives a right without being aware of it, as was the case in the case under discussion, it is advisable to be more than vigilant in drafting the conciliation report and to precisely define the subject of the negotiation.
To read the full brief, click on the link below
Frédéric CHHUM avocat et ancien membre du conseil de l’ordre des avocats de Paris (mandat 2019-2021)
CHHUM AVOCATS (Paris, Nantes, Lille)
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