Do I have to pay the termination indemnity to the employee on CDD whose contractual relations continue following the signing of a CDI? What if it is the industrial tribunal who ordered the reclassification of the CDD into CDI?
CDD: the precariousness premium
The employee on a fixed-term contract (CDD) benefits, when the contract comes to an end, from an end-of-contract indemnity, more commonly known as “precariousness indemnity”. It is intended to compensate for the precariousness of the situation (Labor Code, art. L. 1243-8).
This is equal to 10% of the total gross remuneration paid during the contract. This percentage may be limited to 6% by a contractual provision in return, in particular, for privileged access to vocational training. It is paid at the end of the contract, at the same time as the last salary.
According to article L. 1243-8 of the Labor Code, the precariousness indemnity, which compensates, for the employee, the situation in which he is placed because of his fixed-term contract, is not due when the contractual relationship continues under a contract of indefinite duration.
Thus, if the fixed-term contract continues immediately in
