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SYNTEC Index

The SYNTEC index was created in 1961 and recognized by the Ministry of Economy and Finance in 1974.

It is of particular importance to companies in this sector, as it provides an accurate and transparent representation of cost trends.

What is the SYNTEC index?

The SYNTEC index measures changes in labor costs for services provided by companies in the SYNTEC sector, within the framework of certain projects (long-term contracting, software or application maintenance, etc.).

It consists of five digits, including two decimal places.

What is the purpose of the Syntec index?

This index is used within the industry to update or revise the financial clause of a contract, according to a formula specified in the clause.

This index may, where appropriate, be coupled with other economic indices, depending on the nature of the service provided.

How is this index calculated?

The Syntec index is calculated monthly, based on responses to a survey of companies belonging to a control group within the sector.

Once these responses have been obtained, a monthly report is drawn up, showing the average full-time equivalent workforce of these companies and the total gross salaries corresponding to this workforce.

Based on these results, a calculation is made to measure the change in the sum of gross payroll and the sum of full-time headcount, relative to the working time in question. The resulting index is then smoothed over a 12-month period.

Since 2019, the Syntec index has been revised to incorporate methodological changes recommended by INSEE.

This revised, more precise index is now produced each month by calculating the average payroll and corresponding full-time equivalent workforce declared by the control group, by sector (Digital, Engineering and Consulting) and by employee bracket (20-199 employees / 200-499 employees / 500 employees and over).

Since September 2022, this revised index has been the only one published and monitored.

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Contractual termination

What is a “rupture conventionnelle”?

  • The employer and employee terminate the employment contract by mutual agreement;
  • This termination option is only available to employees with permanent contracts.
  • It is strictly regulated by law

The procedure is organized in accordance with the provisions of the Labor Code:

The negotiation interview

  • Organization of one or more meetings between the employee and the employer to negotiate the terms of termination.
  • The employer must summon the employee to this interview by registered letter with acknowledgement of receipt or by hand-delivery against receipt. This letter must include the conditions under which the interview is convened, and specify the conditions under which the employee may be assisted during the interview.

During this interview, the employee may be assisted by :

  • By a company employee of his or her choice (employee representative);
  • By an employee advisor chosen from a list drawn up by the administrative authority, in the absence of an employee representative within the company.

If the employee is assisted, he must inform his employer, who may also be assisted:

  • By a company employee of his or her choice
  • By a member of its employers’ union, or by another employer in the same industry, if the company employs fewer than 50 people.

Signing the contractual termination agreement :

  • This agreement is signed following the interviews;
  • It must specify the date of termination of the employment contract (which cannot be the date of signature) and the amount of compensation;
  • It must be signed by both parties;
  • One copy must be given to the employee;

Please note: once the “rupture conventionnelle” has been signed, each party has 15 calendar days in which to withdraw from the agreement.

This period begins the day after the agreement is signed.

Important: if the last day of the deadline falls on a Saturday, Sunday or public holiday, the deadline is extended to the 1st working day.

Once this deadline has passed, the DDETSPP must approve the termination.

Approval of the contractual termination agreement

  • The request must be made after expiry of the withdrawal period;
  • The request must be sent to the DDETSPP
  • Registration applications must be submitted online, via the TéléRC.travail.gouv.fr website;
  • If the person making the request for homologation is not able to use the teleservice, the request can be made by submitting a form, by filling in the cerfa n°14598 form for requesting homologation of a contractual termination and sending it to the DDETSPP;
  • In the absence of a response from the DDETSPP within 15 working days, the agreement is deemed approved.
  • If approval is refused, reasons must be given for the decision.

Important: any appeal concerning the agreement, its homologation or the refusal to homologate must be submitted to the Conseil de prud’hommes within 12 months of the date of homologation of the agreement.

How is the severance pay calculated?

Under French law, the severance pay payable on termination of employment by agreement must not be less than the statutory severance pay or the severance pay payable under the collective bargaining agreement.

To calculate the severance pay, we need to take into account the employee’s length of service and reference salary, which corresponds either to the monthly average of the last 12 months prior to dismissal, or to the monthly average of the last three months prior to dismissal.

Please note: Collective bargaining agreements may provide for a more favorable severance payment for the employee, which should be taken into account.

For example, the Syntec collective bargaining agreement provides for a specific redundancy payment, and therefore a contractual termination payment, for engineers and managers with more than 2 years’ seniority.

For other employees, the indemnity provided for in the agreement is the same as the statutory indemnity.

Engineers and managers with more than two years’ seniority receive an indemnity equal to 1/3 of a month for each year of presence.

It is therefore advisable to take into account this particularity of the agreement when concluding a contractual termination with an engineer or manager with more than two years’ seniority in the company.

For other employees, the legal and conventional indemnities are similar.

Important: Since September 1, 2023, a contribution payable by employers has been levied on the portion of the severance pay that is exempt from social security contributions. The rate is set at 30%. This contribution will apply to all contractual termination agreements.

DESRUMAUX AVOCATS is at your disposal to support you at every stage of the contractual termination of employment with one of your employees.

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DESRUMAUX AVOCATS takes action for the planet

For almost a year now, the firm has been using ELISE to recycle its corporate waste. Despite all the firm’s efforts to reduce waste production, the use and disposal of large quantities of paper remains an inherent part of the legal profession. In an effort to reduce its environmental impact, the firm calls on ELISE to collect and recycle its waste.

By giving priority to recycling and avoiding the incineration of a large proportion of corporate waste, ELISE and the firm are helping to reduce atmospheric pollution and preserve natural resources.

In addition, ELISE’s workforce is mainly made up of people with disabilities or integration difficulties. By switching from incineration or landfill to recycling used paper, the firm is helping to create 10 times more jobs in the paper and cardboard processing sector.

After almost a year, the firm is very pleased to conclude that ELISE is a professional company, and would like to recommend it to all other companies wishing to reduce their environmental impact.

On a day-to-day basis, the firm pursues its efforts by adapting the insulation of its premises, encouraging teleworking, favoring soft mobility for its journeys, calculating its carbon footprint, etc.

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Our support for Opéra National de Bordeaux

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At Desrumaux Avocats, we thrive on making Corporate Social Responsibility not just an ideal, but a reality intrinsic to our identity. A staunch advocate of environmental, social and economic impact, we are steadfastly building our future while keeping a watchful eye on the world around us.

In July, we took a new turn, adding another string to our bow by joining the Opera Club. We are now proud to support the Opéra National de Bordeaux for the 2023-2024 artistic season.

For us, this commitment is much more than just a financial contribution. It is the materialization of our desire to contribute to the development of culture, an inseparable element of our vision of corporate citizenship.

Within the Opera Club, our role is not limited to promoting culture. We’re doing our bit to promote the artistic heritage of our beautiful New Aquitaine region.

Our membership of the club was also propelled by the ambition to broaden our social influence, beyond the cultural sphere. We support and admire the Opera’s commitment to social inclusion, through its initiation and awareness programs aimed at various groups, including young people and the disadvantaged.

So it’s with overflowing enthusiasm that our entire team is delighted to share this new adventure with you. As a supporter of the Opera, we look forward to sharing with you our progress towards a world where culture and solidarity are one.

Stay tuned to our newsletter to follow our exciting journey towards a more responsible and culturally rich future.

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3 tips for a successful business sale

You’re getting ready to sell your business. You’ve found a buyer and want to get the process moving as quickly as possible. Here are our top 3 tips for speeding up the process, without losing any security.

1. Prepare your parts

Before buying your business, the buyer will conduct a kind of audit of your business, looking at every aspect of your business. You will need to provide a whole range of documents, such as tax and accounting documents for the last few years, employee employment contracts, a list of current contracts, etc.
More often than not, the customer is missing documents. This may be the general terms and conditions of sale of a leasing contract that the customer has lost and that the leasing company has not returned despite repeated requests, a lost employment contract, a certificate from an accountant who is not very responsive.
Our advice is to start, as soon as possible, to take stock of the documents at your disposal, and to look for the missing documents.

2. Purge pre-emptive rights

One of the main reasons for slowing down the sale of a business is the purging of pre-emptive rights.
Pre-emptive rights are the right granted to someone to have priority in the purchase of your business when it is put up for sale. There may be several pre-emptive rights: for employees, for the municipality in certain cases, but also for a co-contractor, if you are a franchisee for example.

To purge a pre-emptive right, you must inform the person holding the pre-emptive right and wait a pre-determined period (usually two months) for them to come forward before you can sell.

However, to move more quickly, you can ask these people for certificates stating that they do not intend to acquire your business, leaving you free to proceed with the sale before the pre-emption period expires.
It is therefore particularly important to identify existing pre-emption rights early on in the process, in order to deal with this formality as a matter of priority.

3. Notify your Board as soon as possible

As a matter of economics, many company directors wait until they are as far along in the process as possible before notifying their lawyer.
However, in the event of a dispute, your lawyer will not have been able to review the letter of intent, or even the promise to sell.

If you try to make small savings, you could end up with big losses.
If you are planning to sell your business, we strongly recommend that you discuss the matter with your usual advisor as soon as possible.

What’s more, this will enable him to get organized and guarantee you maximum reactivity during the busy times of the transfer.

A well-prepared business sale can be completed quickly. Whether you have a simple project in mind, or the sale of your business is well advanced, you’ll save time by turning to a lawyer who specializes in this area.

Our firm, DESRUMAUX AVOCATS, is at your disposal to assist you in this particular operation.

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6 major advantages for adopting internal rules in your company

Whatever the size of your company, adopting a set of internal rules can transform your working environment and bring significant benefits. Here’s why you should take the plunge:

1. Reinforce Fairness and Transparency: Internal rules provide a clear structure for managing discipline, defining a system of sanctions that reflects your fair-minded approach. It prepares your employees to anticipate the consequences of their actions, propagating a respectful and collaborative working atmosphere.

Practical benefit: Employees are well informed of their rights and obligations, which prevents misunderstandings and facilitates problem-solving.

2. Be the Master of Operational Excellence: With internal regulations as your compass, clearly state your hygiene, health and safety standards. This promotes optimum adherence to protocols, minimizes incidents and boosts productivity.

Practical benefit: It reduces the risk of occupational accidents and illnesses, ensuring the protection of your employees and the peace of mind of your business.

3. Assert your corporate identity: The internal regulations are the mirror image of your company. In addition to highlighting specific details, they express your values, principles and expectations. It’s the ideal channel for conveying your company’s spirit and identity.

Practical benefit: It helps align employee behaviors with the company’s vision and objectives, thus facilitating the achievement of strategic goals.

4. Harmonize understanding : internal regulations ensure that company rules are clearly understood by all. They relieve employment contracts of repetitive standards, leaving room for job-specific clauses.

Practical benefit: It facilitates the integration of new employees and ensures better cooperation between teams thanks to a shared understanding of company rules.

5. Make internal regulations your CSR ally: Internal regulations are an invaluable support for your CSR actions. They can incorporate principles of eco-responsibility, respect for human rights and ethics, propelling your company towards a sustainable and respectful future.

Practical benefit: It enhances your reputation as a responsible company, attracting customers and talent who value ethics and sustainability.

6. Reinforce your corporate culture: internal regulations are the ideal tool for consolidating your corporate culture. Whether you want to encourage collaboration, innovation, diversity, integrity or other core values, they ensure that they are integrated and understood by all employees. This helps to attract and retain talent aligned with these same values, strengthening your team’s unity and performance.

Practical benefit: It helps improve employee engagement, foster a positive work environment and boost overall company performance.

Setting up internal regulations is simpler than it sounds. Once drawn up, all you have to do is send it to the labor inspectorate and the clerk’s office of the relevant industrial tribunal. Its flexibility allows you to modify it at any time, so that it always keeps pace with changes in your company.

Don’t wait any longer, take control of your company with well thought-out internal regulations!

Our firm, DESRUMAUX AVOCATS, is at your disposal to help you draw up and implement this essential document.

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Mandatory clauses in general terms and conditions of sale

You’ve decided to draw up General Terms and Conditions of Sale to govern your business activity and your relationship with your professional customers. You’re wondering what must be included.

Article L. 441-1 of the French Commercial Code stipulates that general terms and conditions of sale must include two elements: (i) price-determining elements (such as the scale of unit prices and any price reductions) and (ii) terms of payment.

Elements of price determination

The unit price list

The December 8, 2005 circular on commercial relations sums up expectations in terms of pricing very well.

“A price list is not compulsory. In fact, it can only exist if the activity in question lends itself to its elaboration. This does not apply to products and services based on quotations. Similarly, the prices of certain products, particularly agricultural products, are subject to price fluctuations that preclude the establishment of a price list.

On the other hand, the seller is not prohibited from drawing up several price lists for several categories of customers to whom he markets his products or services.

Price reductions

This term covers three types of discount: rebates (immediate reductions in the price of a good or service), discounts (commercial price reductions granted in the event of quality defects, late delivery or non-conformity of the order) and rebates (reimbursement to the customer of part of the amount already paid). The amount and terms and conditions under which any buyer may benefit from these discounts must appear in the general terms and conditions of sale .

Terms of payment

These are all the terms and conditions under which the customer’s obligation to pay the price is to be fulfilled.
At the very least, the terms of payment specify the payment deadlines and penalties for late payment.

Payment terms

The French Commercial Code sets a maximum payment term of 45 days end of month, or 60 days from the date of invoice. However, this period may be contractually extended when the contract provides for an acceptance or verification procedure to certify the conformity of the goods or services, and explicitly provides for the extension of the maximum payment term.

However, this must not have the effect of unreasonably delaying the start of payment terms.

Penalties for late payment

By law, the interest rate for late payment is “equal to the interest rate applied by the European Central Bank to its most recent refinancing operation, plus 10 percentage points”. It is possible to derogate from this rule, but the late payment interest rate cannot in any case be less than three times the legal interest rate.

N.B.: this article concerns the General Terms and Conditions of Sale for business customers only. The General Sales Conditions for private customers include other mandatory clauses.

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Communication and acceptance of terms and conditions of sale: what are your obligations?

You’ve drawn up General Terms and Conditions of Sale, or had them drawn up, but you don’t know how or when to pass them on to your customers. This is not a question to be taken lightly. Too many professionals have GTCs that cannot be applied, and are therefore completely useless to them, because they have not been properly communicated to customers. The first paragraph of article 1119 of the French Civil Code stipulates that: “the general terms and conditions invoked by a party shall only have effect with regard to the other party if they have been brought to the latter’s knowledge and if the latter has accepted them”. The General Terms and Conditions of Sale are a contract; they cannot be applied to your customers by you alone. Your customers must have read and accepted your General Terms and Conditions of Sale before ordering from you. It is important to break down the two phases of this obligation:
  • 1. Read our terms and conditions
  • 2. Accept T&Cs
For example, a customer may sign that they have accepted the terms and conditions, but if you have never given them to them, and they are not available online, then they have not been able to read them, and the conditions have not been met. Similarly, a customer may have received the General Terms and Conditions, sent with the quotation for example, but if he does not certify that he has signed them, the conditions are not fulfilled. We recommend that our customers always attach their terms and conditions to the customer’s quotation or order form, and ensure that both are signed at the same time. There are a number of software programs available to automate this process, or online signature software, which enable you to quickly get your customers to sign your terms and conditions, and keep electronic proof of this signature.

An example from our practice

We drew up general terms and conditions for a customer specializing in home services. He forgot to communicate them and have them signed by a client in a hurry to set up the service. A dispute arose between the two parties, and the failure to communicate the GTCs put our client in a difficult position. The dispute is still ongoing.
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Off-premises contracts: concept and obligations

The French Consumer Code governs relations between professionals and consumers (individuals acting in a private capacity). It grants consumers a number of particularly protective rights, including the right of withdrawal and the obligation to provide pre-contractual information.

Under certain conditions, certain provisions of consumer law may apply to certain professionals. These include the right of withdrawal.

You must offer your customer a right of withdrawal if :

  • The contract is concluded off-site; and
  • The subject of the contract does not fall within the customer’s main field of activity (e.g.: contract for the creation of a website when the customer has a gardening business); and
  • The customer has 5 employees or less.

What is an off-premises contract?

This contract is defined in article L. 221-1 of the French Consumer Code, which applies in particular to contracts concluded at a place of sale which is not the seller’s usual place of business (a fair, exhibition, promotional excursion, etc.) or concluded at the seller’s usual place of business immediately after a meeting at such a place.

If your sales process falls into this category, or is likely to do so on the occasion of a particular event, you need to adapt your General Terms and Conditions of Sale.

In particular, you must :

  • Insert the specific information required by article L. 221-5 of the French Consumer Code;
  • Include all the special provisions applicable to off-premises contracts set out in the Consumer Code;
  • Establish a right of withdrawal.

Professionals operating at trade fairs and exhibitions are particularly likely to have their General Terms and Conditions of Sale reviewed by the relevant authorities.

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Right of withdrawal: who pays for postage?

What is the right of withdrawal?

The right of withdrawal is a right granted by law to individual consumers. It enables them to cancel a purchase and request a refund, without having to give any reason.

The right of withdrawal applies in the following cases:

  • When the purchase has been made remotely (by telephone, internet, etc.)
  • When the purchase was made at a door-to-door sale
  • When the purchase was made at a fair or exhibition

Consumers generally have 14 days to exercise their right of withdrawal, from the date of receipt of the order.

It is important to note that the right of withdrawal does not apply to all types of goods or services. For example, it does not apply to personalized goods or services that have already been fully completed.

Who benefits from the right of withdrawal?

The right of withdrawal is granted to consumers, i.e. natural persons who act for purposes that are not part of their professional activity.

It is important to note that the right of withdrawal does not apply to legal entities or professionals purchasing goods or services in the course of their business. The latter must refer to the general conditions of sale, which are specific to each contract.

Does the company have to reimburse shipping costs?

A distinction must be made between two types of shipping costs: shipping costs and return shipping costs.

The cost of sending the product from the professional to the consumer: these costs must be reimbursed to the consumer. This is clearly stipulated in article L221-24 of the French Consumer Code, which states that “when the right of withdrawal is exercised, the professional shall reimburse the consumer for all sums paid, including delivery costs”.

The cost of returning the product from the consumer to the professional: the consumer bears the cost of returning the product under two conditions:

  • The professional must have informed the consumer that this cost will be borne by him. It is therefore important that this be stated in the General Terms and Conditions of Sale.
  • The product must be able to be returned normally by post. For products that cannot be returned due to their nature, the seller will collect the goods at its own expense.

What impact does this have on the General Terms and Conditions of Sale?

The French Consumer Code requires that the General Terms and Conditions of Sale of a company targeting consumers detail the scope and conditions for implementing the right of withdrawal, and present a specific withdrawal form.

In addition, to avoid having to bear the cost of returning the product, it is advisable to inform the consumer that these costs will be borne by him or her.

Generally speaking, if your business is aimed at individuals, you are required to include a certain number of compulsory clauses in your General Terms and Conditions of Sale. We can help you navigate your obligations and draw up a document that clearly sets out your rights and obligations.