The Court of Cassation has rendered two judgments following appeals relating to the cap on severance pay, instituted by order no.
In these decisions, it confirms the compliance of these provisions with Article 10 of Convention No. 158 of the International Labor Organization which specifies the framework for the termination of the employment relationship at the initiative of the employer.
These decisions come after the approval by the Governing Body of the ILO of the report of its committee also concluding that national legislation is in conformity with Convention No. 158 on dismissal, on 25 March.
Allowing a tightening and standardization of compensation for employees in the same situations, the scale of industrial tribunal compensation introduced by the Labor orders in 2017 gives greater predictability to the employment relationship and has made it possible to develop alternatives to litigation, which ultimately contributes to a continued increase in permanent hiring. Between the beginning of 2017 and the end of 2021, the share of permanent contracts in hirings of more than 1 month rose from 45% to nearly 51%.
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