CSP in France: Employer Contribution Capped at Three Months’ Notice (French Supreme Court, 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 Supreme Court (Cour de cassation) confirmed that the employer’s contribution to the contrat de sécurisation professionnelle (CSP — a professional security scheme for employees dismissed on economic grounds) corresponds to the compensatory notice indemnity 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 longer than three months does not have the effect of increasing this contribution.

This ruling brings 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 a salaried lawyer. In accordance with its obligations, the employer offered the employee the opportunity to join 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 in 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 entire contractual notice period applicable to the salaried lawyer, which exceeded three months under the national collective bargaining agreement for salaried lawyers. The body argued that the contribution should correspond to the full compensatory notice indemnity the employee would have received, with no 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 entire contractual notice period. The employer lodged an appeal before the Supreme Court.

The Legal Issue Raised

The question submitted to the Supreme Court was the following: where the employee’s contractual notice period exceeds three months, must the employer’s contribution to the CSP be calculated on the entire 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 notice indemnity”. The text does not explicitly state whether this contribution is capped, but refers to the regulatory and contractual provisions governing the CSP.

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

The Supreme Court’s Ruling

The Supreme Court quashed the Court of Appeal’s decision and ruled 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 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 notice indemnity 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 contractual public policy that is binding on both the employer and France Travail.

“The employer’s contribution to the financing of the professional security contract, provided for in Article L. 1233-69 of the Labour Code, is equal to the amount of the compensatory notice indemnity 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 longer than three months, does not have the effect of increasing this contribution beyond that cap.”

The Court nevertheless clarified 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 notice indemnity for the portion exceeding three months, paid directly by the employer.

The Legal Context

The Professional Security Contract (CSP)

The CSP is a scheme providing enhanced support to employees dismissed on economic grounds in companies with fewer than 1,000 employees (or in receivership or judicial 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 enrolling employee personalised support for 12 months, including in particular:

Individualised monitoring by a dedicated adviser;
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 a company.

The 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 they accept the CSP. Enrolment in the CSP indeed terminates the employment contract at the end 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 notice indemnity, 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 Supreme Court 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 arose as to the treatment of the excess portion. The Supreme Court provides a clear answer: the employer must pay the employee directly the compensatory notice indemnity 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 of accounts (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 notice indemnity for the portion exceeding three months, paid directly to the employee;
The severance pay calculated according to statutory or contractual rules.

Why This Decision Matters 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 Supreme Court 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 France Travail: the CSP contribution capped at three months’ gross salary + contributions;
Pay the employee: the compensatory notice indemnity for the portion exceeding three months + the severance pay + any other components of the final settlement.

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

Practical Recommendations

Following this ruling, employers should:

Verify the applicable contractual notice period: precisely identify the length 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 the employee directly the compensatory notice indemnity for the portion exceeding three months;
Document the calculation: keep in the employee’s file the detailed calculation of the CSP contribution and the compensatory notice indemnity, 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.

The Budgetary Impact for Companies with Long Notice Periods

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

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

Without the cap, the CSP contribution would have been 6 x 8,000 = EUR 48,000 gross + contributions (approximately EUR 21,600) = EUR 69,600 paid to France Travail, i.e. an additional cost of EUR 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 the 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 notice indemnity for the portion exceeding three months. This indemnity is paid directly by the employer to the employee upon final settlement of accounts, and not to France Travail as part of the CSP contribution.

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

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

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

No. The employee receives directly from the employer the compensatory notice indemnity for the portion exceeding three months. They also benefit from the full range of rights associated with the CSP (support, professional security allowance) for 12 months.

Does this rule apply to companies in receivership or judicial liquidation?

Yes, the three-month cap rule applies regardless of the company’s situation. In the event of receivership or judicial liquidation, the CSP contribution is covered by the AGS (the French wage guarantee scheme managing the guarantee of employees’ claims) 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 the part-time employee would have received during the notice period (up to a limit of three months), prorated according to their contractual working time. A half-time employee with a gross monthly salary of EUR 2,000 generates a contribution of 3 x 2,000 = EUR 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 question relating to the professional security contract, economic dismissal or the calculation of termination indemnities, our lawyers are at your disposal.