Resigning and starting a new business: everything you need to know !
You want to start your own business and leave your employment but your employer refuses to agree for a contractual termination?
One of the options is to resign so that you can start your own business. As from 1 November 2019, resignation for the setting-up of a business allows you to receive unemployment benefits.
In this article we will examine conditions, advantage and disadvantage of this solution. We will examine also other solutions, such as: Business start-up leave and part-time work for business creation.
Resigning and starting a business: Conditions
From 1 November 2019, people who resign to start a business will be able to receive unemployment benefits. Before resigning, here is the procedure to follow: 1- First of all, it is necessary to seek professional development advice from Cap emploi, APEC or a selected operator in the region. https://www.apec.fr/ 2- Once your business creation project is correctly determined, you must request a certificate of the real and serious nature of your professional project from the CPIR (Commissions paritaires interprofessionnelles régionales) in your region http://www.via-competences.fr/ 3- If you obtain your certificate, you have 6 months to apply for unemployment benefit from Pôle emploi.
Advantages and disadvantages
The resignation has the advantage of being a unilateral decision : You do not need your employer’s agreement to resign. Then, as of November 1, 2019, the resignation for the creation of a company allows the entrepreneur to receive his unemployment benefits.
On the other hand, the main disadvantage of resigning is that you permanently leave your employment under an employment contract. There will be no turning back (unless your employer wants to reinstate you in the same position and under the same conditions as before).
You also have other solutions at your disposal to create your company without necessarily resigning: – You can start your own business while keeping your paid job. In practice, this can quickly become complicated. In addition, a clause in your employment contract may prohibit it and you must not interfere with your employer’s activity. – You can request a leave for the creation or takeover of a business, or a part-time changeover for the creation or takeover of a business.
Business start-up leave
Business start-up leave can be taken on a full-time or part-time basis.
As with any leave during which you remain an employee of your company, you have an obligation of loyalty towards your employer.
Thus, it is strictly forbidden for you to carry on an activity during your leave for creation that competes with that of your company.
This is why you must specify the nature of the activity of the company you wish to create or take over.
Advantages
Maintaining the employment contract: during the leave for the creation or takeover of a company, you are part of the workforce, and you will return to the position you previously held or to a similar position with remuneration at least equal to that you received before if you finally abandon your project.
Long-term leave: The duration of this leave is set at one year, renewable once, provided that you inform your employer by letter with acknowledgement of receipt at least 3 months before the end of the first year.
Two options at the end of the leave: At the end of the leave for business creation, you have two options: 1- Break your employment contract to start your creation 100%: no notice is required. 2- Reintegrate the company and return to your job if you feel that your chances of success are too low and you prefer to reintegrate your company.
Disadvantages
No guaranteed remuneration: If your employment contract is maintained, your employer is not required to pay you. During this leave, you do not accumulate any seniority or paid leave. You may not require to return to the company before the end of this leave, unless specifically mentioned in your application.
Part-time transition To set-up your compnay
You have also the possibility to benefit from the part-time transition for the creation or takeover of a business. Only employees who meet the following conditions can request a part-time changeover to start or take over a business: have at least 24 months’ seniority in the company, and not having already benefited from the device less than 3 years ago.
