French Employment law - Rupture conventionnelle: compliance of the tax and social system with the allowances paid to employees aged 62 eligible for a retirement pension (c. cass. June 13rd, 2019, n° 19-40011)

In the decision of June 13rd, 2019 (n° 19-40011), the Court of Cassation states that:

- the principle of equality does not preclude the legislator from settling different situations differently or from derogating from equality for reasons of public interest, provided that in one and the other case, the difference of treatment which results from it is in direct relation with the object of the law which establishes it; that the provisions criticized, which are intended to reserve the exemption, part of their amount, social contributions and income tax benefits paid on the occasion of the termination of the contract of employment, in case the employee is not entitled to a retirement pension from a legally compulsory scheme, are based on an objective and rational criterion relating to the need to prevent employees from having an incentive to terminate their professional career prematurely;

- it cannot be seriously argued, therefore, that the difference in treatment between employees who have not yet reached the statutory retirement age and those who have reached but do not enjoy a full pension, these two categories being in a distinct situation, disregards the requirements of the principles of equality before the law and the public charges laid down in Articles 1 of the Constitution, 1st , 6 and 13 of the Declaration of the Rights of Man and of the Citizen of August 26, 1789. https://www.courdecassation.fr/jurisprudence_2/qpc_3396/980_13_42766.html
The question is not serious and there is no need to refer it to the Constitutional Council (conseil constitutionnel).


To read all the Article, please click on the link below

https://blogavocat.fr/space/frederic.chhum/content/french-labour-law-%E2%80%93-mutual-agreed-termination-rupture-conventionnelle-compliance-social-and-tax-system-allowances-paid-employees-aged-62-eligible-retirement-pension-c.-cass.-june-13rd-2019-n%C2%B0-19-40011_

Sources:

. Cass. 2nd civ. June 13, 2019, No. 19-40011 F-D).
https://www.courdecassation.fr/jurisprudence_2/qpc_3396/980_13_42766.html

. Article 80 duodecies of the General Tax Code
https://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000027566297&cidTexte=LEGITEXT000006069577

. Article L. 242-1 of the Social Security Code
https://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000019950246&cidTexte=LEGITEXT000006073189

. Circular DSS / DGPD / SD5B No. 2009-210, July 10, 2009
http://circulaire.legifrance.gouv.fr/pdf/2009/07/cir_29018.pdf

Frédéric CHHUM, Avocat à la Cour et Membre du Conseil de l’ordre des avocats de Paris
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