Where an employee decides to retire, he may be entitled to the payment of an indemnity, in pursuance of the law or the applicable collective bargaining agreement. Therefore, exemption does not apply to cases where the employee obtains a gradual retirement arrangement whereby the employee is still technically under an employment contract, but is not paid by the employer and is not required to work. It should be noted that the above is only a commentary of the law by the tax administration, and does not result from the law itself in a self-explanatory manner. It can be imagined that such comments might be held contrary to the law by the French Administrative Courts. B. Retirement imposed by the employer.
All amounts paid in excess are taxable.
This is an additional exemption which is not provided for by the law. Tax treatment of revocation payments made to directors. They are usually not entitled to revocation payments, unless the circumstances of the revocation may be proved to have caused a separate damage to the revoked director. A short notice period, as well as correspondence with the director, and a formal presentation of the revocation is usually applied in order to avoid any claim for damages from the director concerned. For their functions as employees, they are entitled to the same rights as other employees, and are therefore likely to receive indemnities if their employment contract is terminated.