Chapter I: Redundancies for economic reasons.

Any termination of the employment contract of an employee of an age determined by decree giving entitlement to payment of the insurance allowance provided for in article L. 351-3 entails the obligation for the employer to pay to the institution mentioned in article L.311-7 a contribution, the amount of which is set by decree within the limit of twelve months' gross salary calculated on the monthly average of salaries paid over the last twelve months worked. This amount may vary depending on the age at which the contract is terminated and the size of the company concerned. This contribution is not due in the following cases:

1° Dismissal for serious or gross misconduct ;

1° bis Dismissal in the event of the employee's refusal to accept a change to his employment contract as a result of a reduction in working hours organised by a collective agreement;

2° Redundancy as a result of the employer ceasing to operate the business, for health reasons or on retirement, which results in the permanent closure of the business;

3° Termination of the employment contract of a domestic employee by a private individual;

4° Redundancy covered by article L. 321-12 ;

5° Resignation due to a change in the spouse's place of residence, resulting from a change in the spouse's job or the spouse's retirement;

6° Breach of the employment contract due to force majeure ;

7° Breach of the employment contract of an employee who was over fifty years of age at the time of recruitment and registered for more than three months as a job seeker, when recruitment took place after 9 June 1992 and before 28 May 2003;

7° bis Termination of the employment contract of an employee who was over the age of forty-five at the time of recruitment, when recruitment took place no earlier than 28 May 2003;

8° First termination of an employment contract within the same twelve-month period in a company usually employing fewer than twenty employees;

9° Dismissal for unsuitability when the employer provides written proof that it is impossible to follow up the proposals for redeployment made by the company doctor, or when the company doctor has established that the employee is unsuitable for any position in the company;

10° Termination of the employment contract of an employee hired after the date of publication of Law no. 2006-1770 of 30 December 2006 for the development of employee participation and shareholding and containing various economic and social provisions.

However, when one of the employees referred to in the previous paragraph is reclassified under an open-ended contract within three months of the expiry of the leave period provided for in Articles L. 122-5 et seq., the employer may request reimbursement of the payment provided for in the first paragraph of this Article from the bodies referred to in Article L. 351-21.

This contribution is not due if the employee benefits from the special allowances provided for in 2° of article L. 322-4.

The provisions of article L. 352-3 are applicable to the contribution provided for in the first paragraph of this article.