"New hires contract" (CNE): 2% employer contribution on termination

Article 2 of Ordinance No. 2005-893 of 2 August 2005 provides that an employer ending a "new hires contract" within the first two years, except for gross misconduct, pays the employee compensation equal to 8% of gross pay due since the contract began, plus an employer contribution equal to 2% of that gross pay. Collected by the Assédic, the contribution funds enhanced job-search support for the employee by the public employment service; it is not part of the base for social contributions. The contract is open to employers with twenty or fewer employees.