What is the IFM in temporary work (End-of-Assignment Indemnity)?
14 November 2022 · 10 min reading time
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See job offersThe end-of-contract bonus or end-of-assignment indemnity (IFM) is due to every employee who completes their assignment under the agreed conditions. This end-of-mission aid, also known as the precariousness bonus, compensates for the temporary status of the temporary worker.
Here is the complete guide to the end-of-assignment indemnity in temporary work, to understand your rights.
This article is for informational purposes only. The calculation of IFM may vary depending on the collective agreements and pay items applicable to each position.
Definition of the End-of-Assignment Indemnity Bonus in Temporary Work
Unlike permanent contracts (CDI), temporary work contracts are considered precarious, like fixed-term contracts (CDD). Indeed, they do not provide long-term job security. As such, temporary workers benefit from a precariousness bonus. This financial compensation is called the end-of-contract bonus or end-of-assignment indemnity (IFM).
The IFM is paid at the end of the contract, regardless of its duration. It compensates for the fact that the temporary work contract is short-term. Other mandatory bonuses are added to the temporary worker's salary, such as the compensatory allowance for paid leave.
Terms of Payment for the End-of-Contract Bonus in Temporary Work
The terms of payment for the end-of-assignment indemnity in temporary work are provided for by Article L 1251-32 of the French Labour Code. This law indicates the amount and calculation basis of the IFM. It also specifies the date by which the temporary employment agency must pay it to the employee. This definition is based on the precariousness indemnity paid to employees on fixed-term contracts.
The IFM is due to every temporary worker at the end of each assignment actually completed in a user company. It appears on a separate line of their last payslip issued by the employer, the temporary employment agency. Generally, the amount of the IFM corresponds to 10% of the total gross salary received by the candidate during their temporary assignment. However, this amount may vary depending on the collective agreements and pay items applicable to each position.
In Which Cases is the End-of-Assignment Indemnity Not Due to the Temporary Worker?
The payment of the IFM is mandatory as soon as the employee completes their assignment. However, there are exceptions for which the end-of-contract bonus will not be granted.
Cases of Non-Payment of IFM in Temporary Work
The payment of the IFM is not due in the following cases:
- The employee is hired on a permanent contract (CDI) by the User Company (EU) at the end of their temporary work contract.
- The candidate refused to sign a permanent contract at the end of their assignment, to occupy the same position, under equivalent working conditions and remuneration.
- The employee terminates their assignment contract, on their own initiative, before the expiry date.
- The contract is terminated on the initiative of the user company or the temporary employment agency due to gross or serious misconduct of the employee, or in cases of force majeure.
- The contract is terminated during the trial period.
- The employee refuses the flexibility concept of temporary work. This process allows for a reduction or extension of the contract by a few days.
- The contract is a permanent temporary work contract (CDII).
- The assignment is carried out as part of additional training provided by the user company at the end of the temporary work (skills assessment or validation of experience actions, for example).
The Specific Case of the Public Sector for the Payment of the End-of-Assignment Bonus
State, regional, and hospital administrations can, in certain cases, call on temporary employment agencies to ensure the continuity of public service. The cases for using temporary workers are as follows:
- Replacing an agent
- Temporary increase in activity
- Occasional or seasonal need
- Temporarily vacant position
The temporary worker placed in these administrations has the same rights and obligations as a contractual agent.
Since 2021, the end-of-assignment indemnity has been due to these public sector contract workers. However, the payment of this aid is conditional on the following elements:
- The contract must have been concluded since January 1, 2021.
- The duration of the temporary work contract must be less than 1 year.
- The gross monthly remuneration must be less than €3,109.17.
- The employee must not be hired on a permanent contract at the end of their assignment.
When is the End-of-Assignment Bonus in Temporary Work Paid?
It is the temporary employment agency (ETT), in its capacity as employer, that pays the end-of-contract indemnities to employees. The payment of the end-of-assignment bonus in temporary work occurs on the last payslip established for the assignment. It appears in the elements at the top of the document and is subject to social contributions.
How is the End-of-Assignment Bonus Calculated for a Temporary Worker?
The IFM is equal to 10% of the total gross salary paid to the temporary worker since the beginning of their contract, including renewals. It is calculated and paid by the employer, i.e., the temporary employment agency. The agency settles it at the time of the final payment, i.e., when the last payslip is drawn up.
The amount of the aid is 10%, unless a collective agreement, extended branch agreements, or company agreements provide for a lower rate.
The calculation of the end-of-assignment indemnity takes into account the basic gross salary, but also any increases in income (overtime, various bonuses, for example). Any other financial benefit paid to the employee as part of their role is also included in the calculation.
Only the compensatory allowance for paid leave (which is established last) is not included in the calculation of the IFM.
Examples of End-of-Assignment Bonus Calculations in Temporary Work
Note: As specified, the amount of the IFM may vary depending on the collective agreements and pay items applicable to each position.
Example number 1: a candidate paid €1,801.80 (SMIC as of January 1, 2025), having worked 5 months in an establishment. The amount of the end-of-assignment bonus will be as follows: (5 × €1,801.80) × 10% = €900.9.
Example number 2: an employee paid €1,850 gross per month completes their 8-month assignment. Here is the calculation of the bonus: (8 x €1,850) × 10% = €1,480.
Is the Precariousness Bonus Taxable?
The amount of the indemnity paid at the end of the contracts represents a gross element of the payslip. Consequently, the IFM is subject to social contributions and social levies (CSG and CRDS) for the employer and the employee. It is also subject to income tax withheld at source.
Can the Temporary Work End-of-Assignment Bonus be Paid into a CET?
The end-of-assignment bonus can be placed in whole or in part in a CET (time savings account), just like other benefits or indemnities received. The CET is a personal account that allows you to save money by setting it aside. It is then used to carry out personal projects (buying a house or car, renovations, holidays).
At Staffmatch, we provide the possibility for temporary workers with silver, gold, or platinum status to open a CET. The amounts paid into the time savings account are then increased by the agency at a rate of 8% per year. You can place all or part of the amount of the end-of-assignment indemnity and paid leave allowance in this CET.
The ICCP: Another Payment at the End of an Assignment
A temporary worker is often only present for a few days in a company. Thus, it is difficult for them to take paid leave days. This is even more complex when their assignment consists of replacing an absent employee during the period.
In addition to the end-of-assignment indemnity, employees and workers are entitled to the payment of their unused paid leave at the time of termination of the employment contract. This compensatory allowance for paid leave (ICCP) is due even in the event of early termination of the contract.
Do not confuse ICCP and ICP!
The ICP (Paid Leave Indemnity) compensates for the loss of salary during the leave period. It should therefore not be confused with the ICCP.
To summarize:
If a temporary worker receives a total gross salary of €4355 over the entire duration of an assignment and has not taken any paid leave:
Calculation of IFM: €4355 x 10% = €435 IFM
Example for illustrative purposes only; the calculation may vary depending on the collective agreements and pay items applicable to each position.
Temporary workers are often recognized as occupying precarious employment, just like employees on fixed-term contracts. To compensate for this status, temporary work provides for financial aid, such as the end-of-contract bonus. You now know your rights regarding the payment of this bonus. Be sure to check that it appears on your last payslip at the end of your work period.
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