Section 2: Abolition of replacement income.

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Article R5426-3

French Labour CodeIn force

Updated 2 Nov 2023

I.-The Director referred to in article R. 5312-26 shall withdraw the replacement income referred to in article L. 5421-1 for a limited period or definitively in accordance with the following procedures:

1° In the event of a second breach mentioned in c of 3° of article L. 5412-1, the replacement income will be withdrawn for a period of two consecutive months. From the third breach onwards, the replacement income is withdrawn for a period of four consecutive months;

2° In the event of a breach of the provisions of 1°, 2° and a, b, d, and e of 3° of the aforementioned article, the replacement income will be withdrawn for a period of one month. In the event of a second breach within this group of breaches, the replacement income is withdrawn for a period of two consecutive months. From the third breach within this group of breaches, the replacement income is withdrawn for a period of four consecutive months;

2° bis In the event of a breach as referred to in f of 3° of the aforementioned article, the replacement income is withdrawn for a period of four consecutive months;

3° In the event of failure to comply with the provisions of Article L. 5412-2 and, pursuant to the second paragraph of Article L. 5426-2, in the event of failure to declare, or misrepresentation by the jobseeker, with a view to wrongfully receiving replacement income, it will definitively withdraw this income. However, where this failure is linked to an undeclared activity of very short duration, the replacement income will be withdrawn for a period of two to six months in the case of a first failure, and definitively in the case of repeated failures.

The assessment of repeated breaches will take into account any new breaches detected within two years of the date of notification of the decision to cancel or withdraw the replacement income in respect of the first breach.

II - By way of derogation from 1°, 2° and 2° bis of I, when the jobseeker is a beneficiary of the youth employment contract mentioned in article L. 5131-6, the replacement income mentioned in article L. 5421-1 is withdrawn under the conditions set out in article R. 5131-18.

Mariela Petrova

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Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

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Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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