Roche & Cie

The cost of summer replacements

During the summer, some of your employees may be going on paid leave, you may hence be required to hire replacements in short term contracts.

Focus on the cost of these contracts and some practical advices.

Determining the substitute

If you choose an employee with similar qualification and experience to substitute exactly the same position, you will pay an equivalent compensation (excluding seniority).

Depending on the needs of the company, you can eventually think of a part time replacement.

You can also hire a student during his holidays. He will not have the same profile as the incumbent but his remuneration will be lower and you will not have to pay him compensation for termination of contract.

Check that he has not just finished his last year of study: in this case it is no longer “on vacation” and you will have to pay the compensation for termination of contract.

Compensation

Know that the remuneration of short term contracts of replacement can not be less than that of a long term with an equivalent qualification and identical functions. It must contain the same elements as that of a long term contract including possible bonuses monthly or yearly.

If 13 months remuneration is applicable in the business, you have to calculate it according to the time of presence of the short term contract. Check your collective agreement or agreement.

Contract drafting

a short term contract is necessarily written, given to the employee within 2 days of hiring. It states :

  His motive

  Its duration

  The position held (functions)

  Remuneration, including bonuses and accessories

  The applicable Collective Agreement and contact complementary pension funds and provident.

You can provide a trial period, but it can not exceed 1 day per contract week, and is limited to 2 weeks for a contract up to 6 months.

Contributions

classical regime. A Replacing short term contract leads to the usual contributions. Currently, the employers unemployment insurance rate increased only plays for short terms contract to use, or increased activity.

health costs. Since 01.01.2016, the mutual became mandatory. The summer replacement contracts are often short, Check the situation of the future employee in this regard.

The ceiling. The monthly ceiling for Social Security (PMSS) is prorated for contracts less than a month, or beginning or ending in between the month. The periodicity is monthly payroll, the ceiling is in proportion to 1 / 30th of a month.

The exemptions. As for all employees, you can apply the Fillon reduction if the salary does not exceed 1.6 of the minimum wage and the Family Allowance rates reduced, if not exceeding 3.5 SMIC.

In case of incomplete months, the minimum wage is prorated according to the remuneration paid and that which would have been paid for 1 full month, regardless, these two elements of compensation in lieu of Paid Leave and End contract.

Tip: do not forget those exemptions, since they sometimes allow better remunerate your employees.

End of contract

Compensation leave. You must pay the employee a compensation of 1 / 10th of the remuneration, even for 1 contract less than a month. If conventional CP are longer, must be taken into account.

Council: employees in summer CSD rarely take paid leave. If one or more days have been exceptionally made, consider deduct the corresponding payment of compensation!

Severance pay agreement. You must pay a 10% pay compensation to employees in CDD, provided that the young recruits at their school or university holidays are not affected. This compensation is calculated before the amount of paid leave because it is integrated.

Tip: compensation may be reduced to 6% if the collective agreement or agreement provides for a consideration in vocational training: skills development, skills assessment, etc.

“The training proposal must be effective, under penalty of compensation to 10%.” (Cass. Soc. 03.07.2012 No. 11-16269).