Resignation: Key Points to Know Before Ending a Contract in Wage Portage

Various Types of Contracts in Wage Portage

Wage portage is a legal status similar to that of a sole proprietorship or an EURL. It is a form of employment that combines the benefits of employee status with those of freelancing. In this model, the portage company handles all administrative, fiscal, accounting, and legal aspects. The independent worker, therefore, does not need to create a company or manage their accounting. The worker is linked to the portage company through a contract that establishes the various portage services. In this structure, the portage company is considered the employer of the consultant.

Although the portage company manages all administrative tasks on behalf of the wage-earner, it is up to the wage-earner to find their missions, much like independent workers. The main function of the portage company is to ensure the administrative and financial management of the missions performed by independent workers. Once the consultant finds a mission, a commercial contract is established, defining the terms, duration, and conditions of the mission, as well as the fee for services.

There are two main types of contracts in wage portage:

• The mission contract in wage portage: This governs the relationship between the portage company and the client company. It regulates the services provided by the wage-earner. It provides a legal framework for mission execution and formalizes the relationship between the wage portage company and the client company. It specifies key elements of the mission and various terms negotiated with the client, such as the fee, the purpose, the duration of the mission, etc.
• The employment contract: This governs the relationship between the wage-earner and the portage company. It is very similar to a traditional employment contract and can take the form of an open-ended or fixed-term contract. The fixed-term contract can be renewed twice within a limit of 18 months (with a possible extension of 3 months for commercial prospecting activities). The open-ended contract, on the other hand, has an indefinite duration.

Is it Possible to Terminate a Contract Early in Wage Portage?

In case the tripartite relationship is questioned, it is entirely possible to terminate a contract in wage portage. The termination can occur either on the mission contract that binds the wage portage company to the client company or on the employment contract that binds the wage-earner to the portage company.

In the latter case, termination can take place during the trial period, and the decision can be made by both parties, the wage-earner or the wage portage company. If the termination occurs later, it can take two forms: mutual termination agreement or resignation.

The mutual termination agreement is agreed upon amicably between the wage-earner and the portage company and allows for the preservation of unemployment benefits entitlement. As for resignation, it does not entitle the wage-earner to Pôle Emploi (French employment agency) assistance, but this option is often preferred by consultants who wish to immediately sign a contract with another portage company or return to traditional employment.

It is also worth noting that the wage portage company is entitled to terminate the contract concluded with the consulate if the wage-earner remains without a mission for more than a month. Often, a mutual termination agreement is then proposed so that the wage-earner can benefit from unemployment benefits.

What are the Conditions for Ending a Mission Contract in Wage Portage?

Termination can be requested at the initiative of both parties. This relationship is similar to that of a classic freelancer with their client. Therefore, the mission contract is based on a voluntary relationship that can end at any time upon request of either party. In other words, to end the mission, it is sufficient to communicate the decision to the other party.

To terminate a mission contract in wage portage, it is advisable to do so via registered mail, either paper or electronic.

How Does the End of a Mission in Wage Portage Occur?

In the event of termination of the mission contract, the client company is required to make payments for the missions already completed. The portage company will then proceed to pay the wage to the consultant. In case of unpaid debts, the portage company can support its wage-earner in the recovery of the amounts due.

In the event of a mutual termination agreement with the wage portage company, the wage-earner is entitled to unemployment insurance provided that certain conditions are met. The wage-earner must have signed an employment contract with the portage company, met the minimum number of working days, or have an up-to-date status with URSSAF (French social security organization).

The end of a mission can be an anxious period for consultants, but at Weepo, a portage company, we are here to support our consultants from the beginning to the end of their missions to help them through this delicate professional transition.

Do you have other questions?

Wage Portage and Labor Law? What are the legal aspects of wage portage and the rights of wage-earners.

Paid Leave in Wage Portage? How do paid leave work in the specific context of wage portage?

Wage Portage and Unemployment? What are the implications for unemployment benefits when opting for wage portage?

Financial Guarantee in Wage Portage? What is the role of financial guarantee in protecting wage-earners?