Prud'hommes: what is the lump sum conciliation allowance?
Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)
In the event of a dispute between the employer and the employee concerning the dismissal, the employee may refer the matter to the labor court. A first step in the labor court procedure is to reach an agreement between the two parties. That's called the conciliation. This agreement provides for the payment of a lump sum conciliation allowance. We're taking a look at the regulations.
During conciliation, the agreement may be proposed either by the employer, or by the employee, or by the conciliation board of the labor court itself.
Minutes shall be drawn up if the parties agree.
The amount of the allowance is determined on the basis of a scale which takes account of the length of service of the employee:
Seniority of the employee | Amount of compensation |
|---|---|
Less than 1 year | 2 months salary |
Between 1 year and under 8 years | 3 months of salary for 1 year, plus 1 additional month per year of service |
Between 8 and under 12 years old | 10 months salary |
Between 12 and under 15 | 12 months salary |
Between 15 and under 19 | 14 months salary |
Between 19 and under 23 | 16 months salary |
Between 23 and under 26 | 18 months salary |
Between 26 and under 30 | 20 months salary |
30 years or older | 24 months salary |
The agreement between the employer and the employee terminates the dispute between the parties.
The minutes recording the agreement shall constitute a waiver of all claims and indemnities that may be awarded in the event of null, unjustified or irregular dismissal.
Yes, the conciliation indemnity may be combined with statutory, contractual or contractual indemnities linked to the termination of the employment contract (termination indemnity, compensatory paid leave indemnity, compensatory notice indemnity, non-compete indemnity, etc.).
The lump sum conciliation allowance is not taxable when paid into the limit of the regulatory scale.
The amount of the allowance is determined on the basis of a scale which takes account of the length of service of the employee:
Seniority of the employee | Amount of compensation |
|---|---|
Less than 1 year | 2 months salary |
Between 1 year and under 8 years | 3 months of salary for 1 year, plus 1 additional month per year of service |
Between 8 and under 12 years old | 10 months salary |
Between 12 and under 15 | 12 months salary |
Between 15 and under 19 | 14 months salary |
Between 19 and under 23 | 16 months salary |
Between 23 and under 26 | 18 months salary |
Between 26 and under 30 | 20 months salary |
30 years or older | 24 months salary |
Yes, the lump sum conciliation allowance may be exempted from social security contributions, CSG: titleContent and CRDS: titleContent under certain conditions.
Social contributions
The compensation paid in connection with the conciliation and within the limits of the regulatory scale is exempt from contributions up to 2 times the annual social security ceiling (i.e €96,120).
CSG and CRDS
The compensation paid in connection with the conciliation and within the limits of the regulatory scale is exempt CSG and CRDS in the limit the total amount excluded from the contribution base. This amount takes into account the termination indemnity and the indemnity awarded by the judge.
The excess fraction is subject to CSG and CRDS.
Conciliation Agreement
Scale of the lump sum conciliation allowance