French Labour Law

CSP in France: Employer Contribution Capped at Three Months' Notice (Cass. soc., 18 March 2026, No. 24-21.643)

DAIRIA Law · 2026-08-11 · 10 min

CSP in France: Employer Contribution Capped at Three Months’ Notice (Cass. soc., 18 March 2026, No. 24-21.643)

Professional Security Contract: Employer Contribution Capped at Three Months

In a ruling dated 18 March 2026 (No. 24-21.643), the Social Chamber of the French Cour de cassation (Supreme Court) confirms that the employer’s contribution to the contrat de sécurisation professionnelle (CSP – professional security contract, a reinforced support scheme for employees dismissed on economic grounds) corresponds to the compensatory indemnity in lieu of notice that the employee would have received, up to a limit of three months’ salary, increased by all related mandatory social security contributions. A contractual notice period exceeding three months does not increase this contribution.

This ruling provides welcome legal certainty for employers whose collective bargaining agreements provide for long notice periods. Analysis by DAIRIA Avocats.

The Facts of the Case

A law firm carried out the dismissal on economic grounds of an employed lawyer. In accordance with its obligations, the employer offered the employee the option of joining the contrat de sécurisation professionnelle (CSP), a scheme provided for by Articles L. 1233-65 et seq. of the French Labour Code.

The employee accepted the CSP. The employer paid France Travail (formerly Pôle emploi) the contribution provided for by Article L. 1233-69 of the French Labour Code, calculated on the basis of three months’ salary increased by the related contributions.

France Travail challenged the amount of this contribution, taking the view that it should be calculated on the basis of the full contractual notice period applicable to the employed lawyer, which exceeded three months under the national collective bargaining agreement for employed lawyers. The body argued that the contribution should correspond to the full compensatory indemnity in lieu of notice that the employee would have received, without any cap.

The law firm challenged this interpretation before the courts. The Court of Appeal ruled in favour of France Travail and ordered the employer to pay an additional contribution calculated on the full contractual notice period. The employer lodged an appeal before the Cour de cassation.

The question submitted to the Cour de cassation was as follows: where the employee’s contractual notice period exceeds three months, must the employer’s contribution to the CSP be calculated on the full notice period, or is it capped at three months’ salary?

This question concerned the interpretation of Article L. 1233-69 of the French Labour Code, which provides that the employer contributes to the financing of the CSP by paying a sum corresponding to the employee’s “compensatory indemnity in lieu of notice.” The text does not explicitly state whether this contribution is capped, but refers to the regulatory and agreement-based provisions governing the CSP.

The financial stakes are significant for employers whose employees benefit from long contractual notice periods (senior executives, regulated professions, employed lawyers), which may reach four, five or even six months’ salary.

The Cour de cassation’s Ruling

The Cour de cassation overturned the Court of Appeal’s ruling and found in favour of the employer.

The Social Chamber held that the employer’s contribution to the financing of the CSP is capped at three months’ salary, increased by the related mandatory social security contributions, regardless of the contractual notice period applicable to the employee.

The Court based its decision on the combined provisions of Article L. 1233-69 of the French Labour Code and the CSP agreement, which set the amount of the contribution at “the compensatory indemnity in lieu of notice that the employee would have received had they not benefited from the CSP, up to a limit of three months’ salary.” This limit is a rule of public policy (ordre public conventionnel) that is binding on both the employer and France Travail.

“The employer’s contribution to the financing of the professional security contract, provided for by Article L. 1233-69 of the Labour Code, is equal to the amount of the compensatory indemnity in lieu of notice that the employee would have received, up to a limit of three months’ salary increased by all related mandatory social security contributions. The contractual notice period, even if it exceeds three months, does not have the effect of increasing this contribution beyond that ceiling.”

The Court nevertheless specified that this limitation of the CSP contribution does not deprive the employee of their rights: if the contractual notice period exceeds three months, the employee retains the right to the compensatory indemnity in lieu of notice for the portion exceeding three months, paid directly by the employer.

The Professional Security Contract (CSP)

The CSP is a scheme providing reinforced support for employees dismissed on economic grounds in companies with fewer than 1,000 employees (or in receivership or liquidation, regardless of size). It is provided for by Articles L. 1233-65 to L. 1233-70 of the French Labour Code and by the CSP agreement concluded between the social partners and the State.

The CSP offers the employee who joins it personalised support for 12 months, including in particular:

  • Individualised follow-up by a dedicated advisor;
  • Training and retraining measures;
  • A professional security allowance (allocation de sécurisation professionnelle – ASP) representing 75% of the reference daily salary during the first 12 months;
  • Periods of work in companies.

Financing of the CSP by the Employer

Article L. 1233-69 of the French Labour Code provides that the employer contributes to the financing of the CSP. This contribution replaces the notice period that the employee cannot serve, since they leave the company as soon as the CSP is accepted. Joining the CSP indeed results in termination of the employment contract at the expiry of the 21-day reflection period, without the notice period being served.

The CSP agreement specifies that the contribution is equal to the amount of the compensatory indemnity in lieu of notice, up to a limit of three months’ salary, increased by contributions. This limit existed in the successive agreements but had not been the subject of explicit validation by the Cour de cassation in a case where the contractual notice period exceeded three months.

The Treatment of the Notice Period Exceeding Three Months

Where the contractual notice period exceeds three months, the question of the treatment of the excess portion arose. The Cour de cassation provides a clear answer: the employer must pay directly to the employee the compensatory indemnity in lieu of notice corresponding to the portion of the notice period exceeding three months. This sum is not paid to France Travail as part of the CSP contribution but directly to the employee upon final settlement (solde de tout compte).

Thus, the total financial burden for the employer includes:

  • The CSP contribution corresponding to three months’ gross salary increased by contributions, paid to France Travail;
  • The compensatory indemnity in lieu of notice for the portion exceeding three months, paid directly to the employee;
  • The severance indemnity calculated according to statutory or agreement-based rules.

The Significance of the Decision for Employers

A Cap That Protects the Employer

This ruling secures the position of employers whose employees benefit from long contractual notice periods. By confirming the cap on the CSP contribution at three months, the Cour de cassation prevents the cost of the CSP from becoming disproportionate for certain employers.

Without this cap, an employer whose employee benefits from a six-month contractual notice period would have had to pay France Travail six months’ gross salary increased by contributions, i.e. a considerably higher cost. The three-month cap therefore constitutes significant protection.

Clarification of the Allocation of Sums

The ruling also clarifies the allocation of sums between France Travail and the employee. The employer must:

  • Pay to France Travail: the CSP contribution capped at three months’ gross salary + contributions;
  • Pay to the employee: the compensatory indemnity in lieu of notice for the portion exceeding three months + the severance indemnity + any other elements of the final settlement.

This clear allocation enables employers to budget precisely for the cost of an economic dismissal with CSP.

Practical Recommendations

Following this ruling, employers should:

  • Check the applicable contractual notice period: precisely identify the duration of the notice period applicable to the employee according to the collective bargaining agreement and their status (employee, supervisor, executive);
  • Correctly calculate the CSP contribution: limit it to three months’ gross salary increased by contributions, even if the contractual notice period is longer;
  • Pay the excess portion to the employee: do not forget to pay directly to the employee the compensatory indemnity in lieu of notice for the portion exceeding three months;
  • Document the calculation: keep in the employee’s file the detail of the calculation of the CSP contribution and the compensatory indemnity in lieu of notice, in order to be able to justify the amounts in the event of a challenge by France Travail;
  • Resist excessive demands from France Travail: if France Travail claims a contribution exceeding three months, the employer can rely on this ruling to challenge the demand.

Budgetary Impact for Companies with Long Notice Periods

For professions with long contractual notice periods (senior executives, employed lawyers, occupational physicians, certain engineers), the decision has a significant budgetary impact. Take the example of an employed lawyer with a six-month contractual notice period and a gross monthly salary of €8,000:

  • CSP contribution: 3 x €8,000 = €24,000 gross + employer contributions (approximately €10,800) = €34,800 paid to France Travail;
  • Excess notice indemnity: 3 x €8,000 = €24,000 gross paid to the employee;
  • Total cost related to the notice period: approximately €58,800.

Without the cap, the CSP contribution would have been 6 x €8,000 = €48,000 gross + contributions (approximately €21,600) = €69,600 paid to France Travail, i.e. an additional cost of €34,800.

FAQ – Frequently Asked Questions

Is the CSP contribution always capped at three months?

Yes. Regardless of the contractual notice period applicable to the employee, the employer’s contribution to the CSP is capped at three months’ gross salary increased by mandatory social security contributions. This rule is confirmed by the ruling of 18 March 2026.

What happens to the portion of the notice period exceeding three months?

The employee retains the right to the compensatory indemnity in lieu of notice for the portion exceeding three months. This indemnity is paid directly by the employer to the employee upon final settlement, and not to France Travail as part of the CSP contribution.

Can the employer challenge a demand from France Travail exceeding three months?

Yes, absolutely. If France Travail claims a contribution calculated on the full contractual notice period (beyond three months), the employer can challenge this demand by relying on this ruling of the Cour de cassation and on the provisions of the CSP agreement.

Does an employee on CSP lose rights if their notice period exceeds three months?

No. The employee receives directly from the employer the compensatory indemnity in lieu of notice for the portion exceeding three months. In addition, they benefit from all the rights related to the CSP (support, professional security allowance) for 12 months.

Does this rule apply to companies in receivership or liquidation?

Yes, the three-month cap rule applies regardless of the company’s situation. In the event of receivership or liquidation, the CSP contribution is covered by the AGS (Association pour la gestion du régime de Garantie des créances des Salariés – the wage guarantee scheme) under the same conditions, i.e. up to a limit of three months’ salary.

How is the CSP contribution calculated for a part-time employee?

The contribution is calculated on the basis of the salary that the part-time employee would have received during the notice period (up to a limit of three months), pro-rated according to their contractual working time. A half-time employee with a gross monthly salary of €2,000 generates a contribution of 3 x €2,000 = €6,000 gross + contributions.

This article was written by the team at DAIRIA Avocats, a firm specialising in employment law and human resources. For any questions relating to the professional security contract, economic dismissal or the calculation of termination indemnities, our lawyers are at your disposal.

← All insights